06:18 AM EDT, 06/04/2025 (MT Newswires) -- US automakers are considering shifting auto parts manufacturing to China in order to gain access to magnetic rare-earth minerals on which Beijing has imposed export restrictions, the Wall Street Journal reported late Tuesday, citing people familiar with the situation.
Among ideas being considered are producing EV motors in China or shipping US-made motors to China for the installation of magnets essential for the high-temperatures at which the machines operate, the report said.
The dilemma for carmakers stems from Beijing's decision in April to require companies to obtain permits for the export of magnets made of rare-earth metals, which China largely controls, the report said.
Such solutions would add to production costs and schedules, the report said.
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