European auto suppliers shut plants as China blocks rare earth flow, association says

A growing shortage of rare earth elements has forced several European auto component plants to shut down, the European Association of Automotive Suppliers (CLEPA) said, blaming recent Chinese export restrictions for the disruption, reported Reuters on Wednesday.

Since early April, hundreds of European auto suppliers have applied for export licences to access rare earth materials critical for manufacturing electric motors and components. But CLEPA said only a quarter of those applications have been approved, while others were rejected on what the group described as “highly procedural grounds.”

“Procedures seem to vary from province to province, and in several instances, IP-sensitive information has been requested,” CLEPA said in a statement. The group warned that unless the process is standardised and accelerated, more plants are likely to halt operations within the next three to four weeks as inventories run dry.


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Beijing’s decision to suspend exports of a broad range of rare earths and related magnets in April has sent shockwaves through global supply chains. The restrictions have affected not just the automotive sector, but also aerospace manufacturers, semiconductor producers, and military contractors across Europe, the United States, and Asia.

Industry bodies in Germany, the US, and India have called on their governments to engage with China and seek urgent solutions to avoid long-term supply disruptions.

CLEPA’s warning highlights the depth of Europe’s dependence on Chinese rare earths and the broader vulnerabilities facing global industries that rely on critical raw materials from a single source.