Panic in the auto industry: Rare earths get production talent!

Panic in the auto industry: Rare earths get production talent!

Bitterfeld, Sachsen-Anhalt, Deutschland - The worldwide auto industry is facing a serious crisis that was triggered by the Chinese government's export restrictions for rare earths. These materials are essential for the production of electrically operated vehicles and numerous other applications in modern cars. vienna.at reports that the excitement has already been made among car managers that have already made the first calls to raw material dealers up to the middle To avoid July. Frank Eckard, head of the magnetic dealer Magnosphere, describes the situation as panicked, while companies are willing to pay high prices for the urgently needed raw materials.

Similar to the chip crisis from 2021 to 2023, this scarcity causes an alarm among the automotive manufacturers. The CLEPA supplier association reports that some suppliers already stand still. In the current situation, seven elements of the heavy rare earths are affected. While neodymium can be exported without special approval, the extraction of pure neodyms is technically challenging.

effects on the automotive industry

In cars, only a few hundred grams of rare earths are installed, mainly in the powerful magnets required for electric motors. The dependence on these materials is critical because there are hardly any alternatives, especially for auxiliary motors in vehicles. Some companies examine the opportunity to change their production by obtaining engines from China. A loudspeaker was also developed that does not require rare earth, but it will take years for such innovative products to be used in volume vehicles.

china controls up to 70% of the mining and up to 90% of the further processing of rare earths. This position of power is strategically used by the Chinese government and used as a political means of pressure. Other critical raw materials such as manganese, graphite and aluminum are also under this control. According to Industriemagazin , the European Union tries to counteract with the Critical Raw Materials Act, but the measures are not inadequate.

recycling and strategic initiatives

The Heraeus Remloy GmbH operates the largest recycling facility for rare earth magnets in Europe in Bitterfeld, Saxony-Anhalt, but has a very low capacity utilization of only about one percent. David Bender from Heraeus Remloy calls for an obligation to use recycling material or other alternatives to the material from China. This could be done by fixed odds and other initiatives to reduce the dependency on China, even if China may release its exports again.

experts warn that resources are sufficient for the next few weeks, but is not a long -term solution in sight. The industry expert Jürgen Pieper expresses that enough supplies should be purchased by June to avoid bottlenecks. The auto industry is increasingly dependent on electronics, which further increases the need for rare earths. Tagesschau emphasizes that modern vehicles are not only equipped with basic functions, but also with advanced computer technology, which increases their susceptibility to raw material bottlenecks.

In response to the challenges, some companies think about direct license agreements with China to avoid sanctions and increase production in other regions. The United States shows interest in the rare earths of Ukraine to diversify its own resources. According to experts, the need for a comprehensive raw material strategy is becoming increasingly important, especially for Germany, which has few of its own mineral resources.