Nationwide vehicle production at risk as US car factories face shutdown over rare earth magnet shortage

Published on Jun 04, 2025 at 4:25 AM (UTC+4)
by Grace Donohoe

Last updated on Jun 03, 2025 at 2:16 PM (UTC+4)
Edited by Grace Donohoe

Nationwide vehicle production at risk as US car factories potentially face shutdown – and it’s all to do with a rare earth magnet shortage.

We all need cars, and many new models and variants have been announced by lots of brands.

But, due to a shortage of a certain material, those plans could be in jeopardy.

There’s a rare earth magnet shortage, and it could have serious implications for the auto industry.

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Not many people get an exclusive look behind the scenes in car factories.

The buildings house all manner of production, from paintwork to mechanical engineering, to make sure that cars are looking their best and performing properly.

For example, we bet you didn’t know that Tesla cars that are made at the Texas Gigafactory now drive themselves to the outbound lot – impressive, right?

Plus, before a $4.7 million Bugatti Bolide leaves the factory, eight experts put it through its paces during an incredible turn of events.

But, due to a shortage in the US, factories in the country could face some trouble.

The issue is all to do with rare earth magnets.

According to Reuters, the imminent shortage of rare earth magnets from China ‘could force the closure of car factories within weeks’, which isn’t ideal.

The magnets are used in many aspects of car production, from motors and sensors, to seatbelts and even speakers, so it could be a real potential issue.

The US isn’t a big producer of the magnets, as the majority of them come from China, but they’re used in all aspects of everyday life.

For example, some of your home appliances and even parts of an airplane you’re planning to catch when you head off on summer break, use them.

We’ve taken a look at some of the world’s greatest car manufacturers’ factories, from the McLaren supercar factory in England, to the exclusive Ferrari Foundry factory, where super-fast autos are brought to life.

So clearly the shortage hasn’t affected those car factories yet.

For now, though, the shortage of the rare earth magnets isn’t the best of news. Let’s hope those magnets start appearing again soon.

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Grace started her career writing about the weird and wonderful for the international press. She's covered everything from lifestyle to sports and hard news and now finds herself pursuing her main interest - cars. She's loved cars from a young age and has a keen interest in luxury travel too.