TLDR
China approved only 25% of rare earth export licenses since April 4, forcing Suzuki to halt Swift production and Ford to shut Chicago Explorer assembly. With European suppliers already closing and inventories depleting fast, the rare earth crisis will exceed semiconductor shortage impacts by July unless diplomatic solutions emerge.
The automotive industry’s worst rare earth supply chain nightmare is unfolding in real-time. China’s Ministry of Commerce (MOFCOM) and General Administration of Customs on April 4, 2025, issued Announcement 18, which imposes export controls on specific medium and heavy rare earth materials including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. What began as a retaliatory trade measure against U.S. tariffs has evolved into an existential crisis for global auto production in 2025.
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