financetom
Business
financetom
/
Business
/
Market Chatter: Automakers Consider Producing Engines in China to Circumvent Beijing Rare-Earth Restrictions
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Market Chatter: Automakers Consider Producing Engines in China to Circumvent Beijing Rare-Earth Restrictions
Jun 4, 2025 3:51 AM

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.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved