German car manufacturers could face an imminent production stop due to bottlenecks
German carmakers must prepare for shortages of rare earth elements. This could have devastating consequences for the production of electric cars.
Dependence on China could soon trigger a shortage of rare earths in Germany. This development has the potential to significantly impact electric car production.
Although China recently lifted an export ban, deliveries of rare earths are only made under strict conditions.
These raw materials are crucial for the production of electric motors and batteries for electric vehicles. The German automotive industry, which primarily produces electric cars, could be particularly affected by this shortage and possibly have to accept production shutdowns.
According to information from " Wirtschafts Woche " and the Chinese magazine "Caixin," inventories are threatening to run out in just four to six weeks, which could significantly jeopardize production in Europe. A Volkswagen insider expressed concern about the limited export licenses and fears sudden export bans.
China demonstrates its economic strength through its control over the world's reserves of 17 rare earth elements, as well as its refining and processing capacities. While German manufacturers like BMW are working on developing alternative electric motors, Europe remains heavily dependent on China's raw material exports.
- Given the essential role of rare earths in the production of electric cars, European policymakers are calling for measures to create a more robust industrial policy to reduce dependence on countries like China. The proposed solutions include:
- Building an efficient recycling industry
- Development of new technologies that do not require rare earths
- However, these initiatives require a lot of time and considerable investment.
FOCUS
