Japanese automaker Nissan has announced plans to scale back production of its new electric vehicle (EV) model due to China’s tightening of rare earth element exports, a crucial component for EV batteries and motors.
China, which dominates the global supply of rare earth metals, recently implemented stricter export controls, disrupting supply chains and raising costs for automakers worldwide. Nissan’s decision reflects growing concerns across the industry about resource availability and geopolitical risks impacting the transition to electric mobility.
Industry analysts warn that such export restrictions could slow down EV production globally, forcing manufacturers to seek alternative suppliers or invest heavily in recycling and domestic mining initiatives.
Nissan is reportedly exploring strategic adjustments, including shifting some production timelines and boosting research into battery technologies less reliant on rare earth materials. The move underscores the increasing complexity of supply chains amid evolving geopolitical landscapes.
