Suzuki stops production of the Swift: Rare earth under pressure!

Suzuki stops production of the Swift: Rare earth under pressure!

In the automotive sector, an acute lack of rare earths cause considerable challenges. A clear sign for this is Suzuki's decision to set the production of his successful Swift model. This was recently known, with the reasons for this to be due to the restrictive delivery restrictions in China. According to information from OE24 previously there was a temporary production break that occurs from May 26 to 6 June due to a lack of component was.

A spokesman for Suzuki did not want to comment on the exact reasons, but the production stop was first reported by the Nikkei business newspaper. The European auto industry is also affected because China's export brake has provoked several production failures for rare earths that has been in effect since April. The European Supplier Association CLEPA reports that the first car suppliers have already had to stop manufacturing lines.

global dependence on rare earths

The decline in rare earth availability is not just a problem for Suzuki. Merkur reports that the shortage of raw materials could trigger a potential crisis than the chip crisis of 2021. The EU is heavily dependent on imports, since the dismantling and processing of rare earths hardly take place in the region. In 2024, Germany imported over 5900 tons of rare earths, with 3400 tons of China.

The dependency is also evident in specific elements such as neodymium, praseodym and samarium, which are almost completely imported from China. The EU also recorded a total of 12,900 tons of imports in 2024, 6,000 of them from China. China's decision to suspend the exports of seven rare earths and magnets in the context of a trade dispute with the USA has also tightened the situation.

effects on the automotive industry

Experts warn that the stocks of automobile manufacturers and suppliers could be exhausted in the coming weeks. An analysis of the situation indicates a serious situation that could quickly lead to production stops if it is not a short -term solution. Tagesschau cited industry experts who consider strategic planning as urgently necessary in order to be able to react to possible delivery failures.

The lack of rare earths concern the entire industry, since modern vehicles today depend heavily on electronic components. With the trend towards electronic cars that have software updates instead of physical parts, the need for the raw materials in question continue to increase. In order to reduce this critical dependency, you are already considering direct license agreements with China and the increase in raw material production in other regions.

The situation not only illustrates the problems within the automotive industry, but also emphasizes the need to develop a raw material strategy. Experts recommend that Germany have to take care of its own resources in the long term, to secure competitiveness in the auto industry.