Europe's Auto Parts Suppliers Suspend Output Due To China's Rare Earth Curbs

Reuters reports on June 4, 2025 on the shutdown of several European auto supplier plants and production lines due to a shortage of rare earths caused by China's export restrictions. Key points from the article include:

• Europe's auto supplier association CLEPA has confirmed the shutdowns, warning of further outages to come as the shortage persists, affecting countries within the European Union.
• Japanese automakers, such as Toyota Motor Corp. and Honda Motor Co. Ltd., are facing production disruptions due to China's dominance in the critical mineral industry, which has led to global supply chain issues.
• Australia's Lynas Rare Earths Ltd., the world's largest rare earths producer outside of China, faces pressure to boost production amid the ongoing shortage.
• In the United States, MP Materials Corp., the largest rare earth producer, has seen its stock rise more than 12% since May 30 due to the increased demand for their products.
• Automakers, aerospace manufacturers, semiconductor companies, and military contractors across various countries are also impacted by the shortage.

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