Overview

• Consultants warn German automakers could exhaust current rare earth inventories in four to six weeks, risking partial electric vehicle production shutdowns.
• China has implemented a licensing system with only a handful of export permits issued to select magnet suppliers, and volumes remain tightly capped.
• Volkswagen maintains that its supply chains are stable for now, but other industry leaders emphasize ongoing volatility over future shipments.
• BMW and Mercedes are advancing rare-earth-free motors and new battery chemistries in an effort to reduce dependence on Chinese materials.
• Experts and industry voices are calling on the European Commission to develop domestic processing capacity and diversify sourcing to prevent future supply crises.