BERLIN (Reuters) -Several European auto supplier plants and production lines have been shut down due to a shortage of rare earths caused by China imposing restrictions on exports, Europe’s auto supplier association CLEPA said, warning of further outages to come.
Of the hundreds of requests for export licenses made by auto suppliers since early April, only a quarter have been granted so far, CLEPA added, with some requests rejected on what the association described as “highly procedural grounds”.
“Procedures seem to vary from province to province and in several instances IP-sensitive information has been requested,” it said, adding that if the process was not streamlined soon, more plants would likely be affected in the next three to four weeks as inventories depleted.
China’s decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors worldwide, prompting industry groups in Germany, the U.S. and India to call on politicians to lobby Beijing for a quick solution.
(Reporting by Victoria Waldersee, Editing by Louise HeavensEditing by Ludwig Burger)
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