In the ongoing US-China trade negotiations, rare earth supply has become a crucial issue. Jim Farley, CEO of Ford Motor Company, recently stated that the company cannot maintain production without access to high-power magnets supplied by China. As a result, some Ford factories have been temporarily closed over the past three weeks. He emphasized, "Without China, we cannot buy any high-power magnets."

According to a report by Bloomberg, Farley pointed out at a forum that rare earth magnets are essential to automobile manufacturing, stating that the inability to obtain these components has led to temporary shutdowns in the US. Moreover, the increasing tensions in US-China trade are directly associated with the supply of high-power magnets. Although President Donald Trump announced earlier this month that negotiations with China had succeeded and that rare earth export licenses would be expedited, Farley asserted that his company still faces challenges in sourcing these materials.

Farley previously mentioned that new approval processes implemented by China on rare earth exports have further delayed the supply chain. Ford had to halt production for a week at its Chicago Explorer SUV factory due to material shortages in May. China exported 93% less rare earth magnets to the US in May compared to the previous year, directly impacting the global automotive, electronics, and defense industries.

Additionally, Western companies have complained about the opacity of the approval process and lengthy wait times, with many applications being denied. In response, China's Ministry of Commerce spokesperson He Yadong reiterated that China places a high value on maintaining the stability and security of global supply chains and will continue to expedite the review of rare earth export applications.