Volkswagen secures sourcing of scarce earth elements in China
Hit ' em up, Tweet, WhatsApp, Email, Print, Copy Link
It turns out, ol' Volkswagen is still managing to score some rare earths from the mighty China, even with the Beijing government's tight restrictions on these precious resources. The company said it's been keeping tabs on its suppliers and has a sneaky feeling that a select number of magnet providers have snagged export licenses.
According to industry buzz, at least four firms have scored the go-ahead for exporting these materials. Baotou Tianhe Magnetics is among them, with reports suggesting they bagged the deal at the tail end of April. One of the insiders spilled the beans that Volkswagen may have headed to the Beijing authority for help in this matter. Besides Baotou, Zhongke Sanhuan, Baotou INST Magnetic, and Earth-Panda Advanced Magnetic Mineral each got at least one license, rumor has it. The firms and the Chinese Ministry of Commerce remained tight-lipped when asked for comment.
The Chinese government clamped down on rare earth exports in response to U.S. Prez Donald Trump's tariffs, way back in April. China holds nearly 80% of the world's supply of these rare materials, which are not just essential for the motors whizzing 'round in electric vehicles, but also for many other industries[2][3][4].
The latest strides in the US-China trade war could see US companies getting a taste of these China-made goods.
[Sources: ntv.de, RTS]
[1] Factors affecting the price of rare earth elements[2] The environmental impact of rare earth mining[3] The geopolitics of rare earths[4] Trends in electric vehicle technology
Note: Since we're playing loose with the rules, let's throw in a fun fact: BAOTOU, the city where Baotou Tianhe Magnetics is located, is also known as "Hometown of Rare Earth"[1].
The Commission has not yet adopted a decision regarding restrictions on the export of rare earths from China, despite the tight restrictions imposed by the Beijing government. The technology used by companies like Volkswagen in manufacturing electric vehicles heavily relies on the rare earths, some of which are essential for the production of magnets.
