White House is alerted by automakers about collapse by scarcity of rare lands of China

United States Automotive Industry Representatives warned the federal government about the risk of production lines due to the restrictions imposed by China to export rare land magnets.

The information is contained in a letter sent on May 9 to the administration of then -President Donald Trump, according to Reuters report.

The document is signed by the alliance for automotive innovation – which represents automakers such as General Motors, Toyota, Volkswagen and Hyundai – and the Mema Association, which brings together industry suppliers.

In the text, the entities express “deep concern” with the scarcity of materials and claim that the lack of these inputs can compromise the manufacture of essential components of the automotive chain.

“Without reliable access to these elements and magnets, automotive suppliers will not be able to manufacture essential components,” they wrote. Among the affected items are “windshield wiper engines, ABS brake sensors, alternators, automatic transmissions, electric steering systems, cameras, speakers and safety belts”.

Associations warn that the situation can have direct consequences. “In severe cases, this may include the need to reduce production volumes or even the stoppage of assembly lines,” they said.

In an interview with Reuters, the presidents of the two entities, John Bozzella (Alliance) and Bill Long (Mema), said the problem continues. Both thanked the “direct involvement of the Trump administration” and mentioned the role of authorities such as Treasury Secretary Scott Bessent and US commerce representative Jamieson Greer, who participated in recent negotiations with Chinese representatives in Geneva.

Despite the diplomatic dialogue, there was no normalization in the flow of materials. In a statement to CNBC broadcaster, Greer said Beijing has pledged to suspend the restrictions, but is not complying with the agreement. “We have not seen the flow of these critical minerals as it should be happening,” he said.

China has more than 90% of the global refining capacity of permanent magnets used in sectors such as automotive, defense and electronics industry.

Since April, the Chinese government has required specific licenses to export these materials. The new process has been classified as bureaucratic and poorly transparent, requiring extensive documentation, in some cases with hundreds of pages.

Data from China itself, cited by Reuters, indicate that rare land exports fell by half in April. Sector companies reported increasing difficulties. Bosch, a global supplier of auto parts, said through a spokesman that its suppliers face “complex and time consuming procedures” to obtain export licenses.

The impact also extends to other markets. Manufacturers from India reported that if there is no license grant in the coming weeks, there will be interruption in the production of vehicles from June.

Some authorizations have already been issued, including for Volkswagen suppliers, but the slowness of the process has caused dissatisfaction between affected companies.

President Donald Trump publicly criticized China’s performance. In a publication on the Truth Social network last Friday, he accused Beijing of breaking the agreement previously signed. “China, perhaps without surprise to some, totally violated its agreement with us,” he wrote.

In response, the Chinese embassy in Washington denied the accusations and said the United States also adopt excessive export controls, especially the semiconductor sector.

US government sources told Reuters that Geneva’s negotiations dealt with non -tariff tariffs and unhappy countermeasures, but did not address American restrictions on high -tech exports.

The impasse between the two countries should increase commercial tensions in strategic sectors. Since 2018, the United States and China have maintained bilateral disputes on production chains and supply of industry -essential components. The new round of restrictions imposed by Beijing rekindles the debates on international dependence and industrial security.

American authorities already consider adopting retaliatory measures if the situation is not resolved.

According to sources linked to the automotive sector, a prolonged interruption in the supply of magnets can directly compromise vehicle production in the United States, affecting jobs, internal supply and industry electrification goals.

The scarcity of materials occurs at a time of technological transition in the auto industry, with increased demand for electric and autonomous vehicles. These models depend strongly on components that use rare land magnets, making the strategic supply to the long -term goals of automakers.

To date, there is no forecast of export normalization. Industry representatives await an official Beijing response about compliance with the agreement, while following the diplomatic developments and possible measures adopted by Washington.