Ford forced to shut down Explorer production in Chicago over rare-earth element shortage

Ford has hit the brakes on its Explorer production at its Chicago Assembly Plant, but not because of a design flaw or labor issue.

This time, the holdup is something far less expected: a shortage of rare-earth magnets.

These tiny but mighty components are essential for everything from electric motors to power seats and even your car’s sound system.

With China tightening exports on rare-earth materials, Ford and much of the auto industry is scrambling to keep the wheels turning.

VISIT SBX CARS – View live supercar auctions powered by Supercar Blondie

According to CEO Jim Farley, Ford is flying blind on the rare-earth supply front, managing production on a day-to-day basis.

Last month, the company had to pause its Ford Explorer production for a week when one of its magnet suppliers came up empty-handed.

Even though the US government granted temporary export licenses to help companies like Ford and GM keep the parts flowing, the shipments remain erratic at best.

So what’s going on?

Well, China has introduced new export restrictions this year, which is problematic as the country produces more than 90 percent of the world’s rare-earth magnets.

Now, any company wanting to ship these materials overseas needs a license, and paperwork is slowing things down.

The parts in question may be small, but they’re critical, as they power everything from windshield wipers to fancy seat adjusters.

And in a modern SUV like the Ford Explorer, you can’t exactly build the thing without them.

Suppliers and automakers are understandably getting nervous.

The Motor & Equipment Manufacturers Association (MEMA) recently sounded the alarm, warning that if this keeps up, it could stall a lot more than just the Ford Explorer.

MEMA has called on the US government to quickly step in with long-term solutions.

In the meantime, some manufacturers are looking at creative workarounds, like shifting production of finished components to China itself, since finished goods aren’t blocked by the same export rules.

Others are relying on rare-earth sources in the US, Australia, and Canada.

For example, the US recently discovered two billion tons of rare-earth minerals, while researchers in Japan also found 230 million tons of rare minerals in the Pacific Ocean.

Despite these discoveries, mining these minerals and getting it into the industries that need it the most will take time.

For now, the Ford Explorer production line is going to be on hold, waiting on some very rare parts to hit the assembly line.

It’s a small reminder that even in the world of giant cars, sometimes the tiniest components cause the biggest delays.

DISCOVER SBX CARS: The global premium car auction platform powered by Supercar Blondie