Date: November 4, 2025

U.S. automotive parts manufacturers are sounding alarms as tighter export controls from China on rare-earth magnets risk triggering a new wave of supply chain disruptions. With vehicles increasingly relying on these critical components, the ripple effects are already being felt across the aftermarket and repair sectors.

Key Details:

  • China controls up to 70% of global rare-earth mining, about 85% of refining capacity and roughly 90% of rare-earth metal alloy and magnet production, according to consultancy AlixPartners. Reuters
  • Automotive executives report mounting pressure: one supplier noted automakers are “willing to pay any price” as magnet stockpiles dwindle. Reuters
  • These rare-earth magnets are used not only in electric vehicle motors but in conventional vehicle systems as well — side-mirrors, speakers, oil pumps and braking sensors. Reuters
  • The industry is also grappling with tariff adjustments and component-import controls that add cost and complexity to U.S. sourcing strategies.

Why It Matters:
For U.S. car owners and parts buyers, the squeeze on rare-earth supplies means two things: higher parts costs and longer lead times for certain components. Aftermarket suppliers and repair shops may find common replacement parts — especially those involving sensors, electric motors or finer electronics — harder to source or priced higher. For your business and mine in the auto-parts space, the urgency is clear: diversify sourcing, stock up on key items now and communicate proactively with customers about potential wait times or cost shifts.

Stay tuned with Parts Genuine for genuine auto parts, accessories, and the latest automotive updates in the U.S.