(Reuters) -Ford Motor Co is struggling with supplies of rare earth magnets, the automaker’s CEO Jim Farley told Bloomberg News in an interview on Friday. China, which controls more than 90% of global rare earth processing capacity, imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter […]
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Ford struggles with supply of rare earth magnets, CEO tells Bloomberg News
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(Reuters) -Ford Motor Co is struggling with supplies of rare earth magnets, the automaker’s CEO Jim Farley told Bloomberg News in an interview on Friday.
China, which controls more than 90% of global rare earth processing capacity, imposed new export licensing rules in April, tightening supply to Western manufacturers of everything from cars and fighter jets to household appliances.
Automakers, especially those focused on EVs, are among the largest industrial consumers of rare earth materials.
China granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers, including Ford, earlier this month, according to a Reuters report.
But Farley told Bloomberg News the company continues to struggle.
“It’s day to day,” Farley said. “We have had to shut down factories. It’s hand-to-mouth right now.”
Ford did not immediately respond to Reuters’ request for a comment.
The company had previously shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage.
Shares of Ford were down close to 1% in morning trade. They have risen more than 7% since the start of the year.
Western countries have been trying to reduce reliance on Chinese rare earths by investing in alternative sources and refining capacity in places like Australia, Canada, and the United States.
(Reporting by Abhinav Parmar and Nathan Gomes in Bengaluru; Editing by Leroy Leo)