European carmakers are in talks with western magnet and rare earths companies as they seek to secure alternative sources of the critical materials amid a shortage exacerbated by Chinese export restrictions.
Rare earths are vital to car manufacturers because they are used in the permanent magnets in electric vehicle motors as well as other components found in all cars. China, which dominates the supply and processing of the materials, tightened export controls in April in response to the escalating US tariff war.
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