SL Mex, a subsidiary of South Korea-based automotive supplier SL Corp., established a manufacturing plant in San Luis Potosí, Mexico, local news portal MexicoNow reported June 23. The South Korean supplier invested $45 million in the first phase of the facility, which is located in the Logistik II industrial park in Villa de Reyes. The San Luis Potosí plant will produce headlight modules for global automakers such as BMW, General Motors, Hyundai and Kia. The plant, spread over 8.9 hectar...

Tata Motors, India's largest electric vehicle manufacturer, is not experiencing disruptions in sourcing rare earth magnets, despite mainland China's export restrictions. At its 80th Annual General Meeting, Chairman Natarajan Chandrasekaran assured shareholders that the company is managing its supply needs and is exploring alternative sources to ensure future availability. Mainland China dominates the global supply of rare earth elements (REEs), prompting Tata Motors and other automakers wo...

Ford is struggling with the supplies of rare earth materials, Detroit Free Press and several other media outlets reported CEO Jim Farley telling Bloomberg TV in an interview. Mainland China, which holds over 90% of the global rare earth processing capacity, introduced stricter export licensing rules in April, affecting the supply to Western manufacturers across various industries, including automakers focused on electric vehicles. Farley highlighted ongoing difficulties, saying that the compa...

Hyundai Steel, a subsidiary of Hyundai Motor Group (HMG), plans to supply 100,000 metric tons of auto steel sheets to GM Korea, starting in September, The Korea Herald reported June 13. This decision follows GM Korea's move to change its steel sheet supplier from mainland China-based steel manufacturer Baoshan Iron & Steel amid quality certification processes. The supply will account for 20% of GM Korea's annual steel sheet consumption. This marks Hyundai Steel's first substanti...

Dongfeng Motor, Guangzhou Automobile Group Co. (GAC) and FAW Group, the leading state-owned automakers in mainland China, have committed to reducing supplier payment terms to 60 days, ETAuto reported June 11. The development comes amid growing regulatory scrutiny over delayed supplier payments and opaque financing practices in the automotive supply chain. This initiative is expected to improve capital flow and financial transparency in the mainland Chinese automotive industry, which ha...

Mainland China has issued temporary export licenses to rare earth suppliers for the top three US automakers, according to a June 6 report by Reuters, citing sources familiar with the matter. These licenses, valid for six months, come amid supply chain disruptions caused by mainland China's recent export curbs on rare earth materials. The restrictions, imposed in April, have impacted industries globally, including automakers, aerospace manufacturers and semiconductor companies. The export curb...

Mainland China recently approved several export license applications for rare earth-related items in response to the increasing international demand for medium and heavy rare earth elements, primarily utilized in high-tech manufacturing sectors such as industrial robotics and electric vehicles. This strategy aims to balance mainland China's resource security with its status as a crucial supplier in the global high-tech value chain. The Commerce Ministry said that the export controls on rare e...

India is in discussions with companies to establish long-term stockpiles of rare earth magnets by offering fiscal incentives for domestic production. The effort aims to reduce India's reliance on mainland China, which dominates 90% of the processing of these magnets crucial for industries such as clean energy, defense and automobiles. Mainland China's decision in April to curb exports of rare earth materials has prompted global industry concerns, highlighting the need for India to develop its ma...

Lucid Group, a manufacturer of advanced electric vehicles, announced a multiyear supply agreement with Graphite One to secure US-sourced natural graphite, aiming to enhance its supply chain for raw materials within the US. This agreement complements previous arrangements with Syrah Resources and Graphite One, ensuring future Lucid vehicles will utilize natural and high-performance synthetic graphite mined and produced in the US as part of directed agreements with its battery-cell suppliers. M...

Posco Holdings, the parent company of South Korea-based steel manufacturer and battery materials supplier Posco Group, has inaugurated a key minerals research center in Perth, Australia. This initiative is part of the group's strategy to gain a technological advantage in advanced materials, which includes steelmaking, battery materials and rare earths. The center aims to enhance low-carbon steelmaking processes and reduce costs in lithium and nickel production. Additionally, it will focus on dev...

On May 29, Volvo Cars suspended production at its Ridgeville assembly plant in South Carolina, US, due to a shortage of critical components, Auto World Journal reported May 30. The plant, which produces the all-electric Volvo EX90 sport utility vehicle, is key to the Swedish carmaker's electrification strategy in the largest automotive market in North America. The manufacturing suspension reflects the broader challenges automakers face in maintaining steady output amid fluctuating supply cond...

According to Gabriel Padilla, general director of the National Auto Parts Industry (La Industria Nacional de Autopartes: INA), the association of automotive components suppliers in Mexico, about 92% of auto parts manufactured in the country comply with the US-Mexico-Canada Agreement (USMCA) regulations, allowing them to be exempt from tariffs when exported to the US. The remaining 8% face an average tariff of 27%. “We are one of the sectors with the highest level of compliance with the USMC...

A consortium led by LG has decided to withdraw from a project valued at approximately 11 trillion won (about $7.7 billion) aimed at establishing an electric vehicle battery supply chain in Indonesia. The consortium, which includes partners such as LG Energy Solution, LG Chem and LX International Corp., had been collaborating with the Indonesian government and state-owned enterprises to create an "end-to-end value chain" for EV batteries. This initiative was intended to encompass the entire pr...

US President Donald Trump has announced plans to introduce a tariff rate on imported semiconductors within the coming week, indicating a shift from previously announced exemptions for smartphones and computers, according to a report published by Reuters on April 14. "We wanted to uncomplicate it from a lot of other companies, because we want to make our chips and semiconductors and other things in our country," Trump said, according to the report. Despite not providing specifics on potenti...

SK IE Technology Co. Ltd. (SKIET) is expanding its presence within the North American market by initiating the supply of electric vehicle battery separator materials to clients in North America starting April. This strategic move is aimed at broadening SKIET's customer portfolio while tapping into the increasing demand for non-mainland Chinese battery components, a demand surge propelled by recent US trade policies. In a significant deal made in February, SKIET secured a supply cont...

US President Donald Trump has imposed a 32% tariff on exports from Taiwan to the US, excluding semiconductors, according to an April 3 report by The New York Times. The move has raised concerns in Taiwan and other key semiconductor-producing nations, such as South Korea, about the potential for future tariffs on the chip sector. Taiwan, a major hub in the global semiconductor supply chain, has built a highly advanced network of chip production facilities over several decades. While semic...

Hyundai Mobis plans to start using low-carbon aluminum produced with solar energy in the production of major automotive components, as part of its goal to achieve carbon neutrality by 2045. This initiative not only addresses the need for lighter materials in the production of electric vehicles but also aligns with the company's efforts to enhance its green supply chain from the raw material procurement phase. Hyundai Mobis has secured a contract with Emirates Global Aluminum (EGA), headquarte...

As reported in a press release on March 31, STMicroelectronics and Innoscience, a leading entity in 8-inch gallium nitride on silicon (GaN-on-Si) high-performance, low-cost manufacturing, have announced a collaborative agreement focusing on the development and manufacturing of gallium nitride (GaN) technology. The partnership aims to enhance GaN power solutions and fortify the supply chain resilience by leveraging each company's strengths. The initiative is set to advance GaN power techn...

BASF's Coatings division has announced the completion of a significant expansion to its polyester and polyurethane resin production capacity at the Caojing plant in Shanghai. Originally launched in 2015 with the capacity to produce 8,000 metric tons annually, the plant's capacity has now more than doubled to 18,800 metric tons per year. This expansion is aimed at supporting the growing market demands within the automotive industry in China and the broader Asia-Pacific region. In addition to the ...

The automotive industry is transforming as it faces sustainability pressures and must adapt to changing market dynamics. Recently, the focus on sustainability has intensified due to regulatory requirements, consumer demand for greener products and the urgent need to combat climate change. The S&P Global Mobility 2025 Supplier Outlook highlights the sustainability practices being adopted across the automotive supply chain. The growing pressure for sustainability Luz Mauch, executive vic...

The automotive industry is rapidly evolving, shaped by shifting consumer preferences and economic pressures. Suppliers must be agile and proactive, swiftly responding to consumer demands while balancing production costs and profitability in a fiercely competitive market. The S&P Global Mobility 2025 Supplier Outlook emphasizes the need for suppliers to tackle these market changes head-on. Consumer behavior in flux Economic factors are key in shaping how consumers behave. In turn, these...

In an era where vehicles are as much about software as they are about steel, partnering has become essential rather than just beneficial. It is the powerhouse driving advancements in connected vehicles, autonomous driving innovations and sustainable practices within the automotive industry. However, collaboration in this sector can be a double-edged sword; while it sparks innovation, it also presents challenges. Cultural clashes, intellectual property dilemmas and the need for agility in respons...

The automotive industry is grappling with a myriad of supply chain disruptions that have become increasingly common since the pandemic struck. In addition to Brexit complexities, rising material costs, natural disasters, geopolitical tensions and economic instability are forcing companies to rethink their logistics and sourcing strategies on the fly. While improvements are anticipated in the global car chip shortage, challenges persist. As Nimish Ashar, associate director of E/E & Semicon...

As the automotive industry evolves, suppliers must prioritize regulatory compliance due to stricter environmental laws linked to climate change. Investing in new technologies is essential to avoid penalties and enhance competitiveness. We examine the regulatory challenges facing suppliers and share insights from industry executives in S&P Global Mobility’s 2025 Automotive Supplier Outlook. Regulatory pressures: A catalyst for change Automotive suppliers are facing numerous challenges...

The European automotive supply industry is currently grappling with a severe labor shortage, exacerbated by record attrition levels that have plagued it over the past few years. This alarming situation has led to job losses that surpass even the darkest days of the pandemic. Despite optimistic forecasts for new job creation, the reality reveals a staggering net loss of nearly 56,000 positions since 2020, with the worst yet to come, according to The European Association of Automotive Suppliers (C...

Amid escalating trade tensions, US President Donald Trump has intensified pressure on key industries with a series of executive orders, ordering a review of US trade agreements and signaling further tariffs on automotive, semiconductors and pharmaceuticals. With a potential 25% tariff on all imported vehicles and new steel and aluminum tariffs set to take effect on March 12, 2025, the automotive sector faces mounting uncertainty. With the rise of software-defined cars, semiconductor content p...

Since his inauguration as US President last month, Donald Trump has been throwing caution to the rulebooks. Automotive industry stakeholders, both local and global, wait and watch for the many implications to unfold as President Trump brings key national issues to the fore—perceived security threats from mainland Chinese automakers and technology companies; environmental policy, particularly as it relates to vehicle emissions, infrastructure spending and safety regulations; and trade policy, a...

President Biden on Tuesday (Jan. 14) announced strong and decisive actions to safeguard the US connected vehicle supply chains against any potential security risks by the People’s Republic of China (PRC) and the Russian Federation (Russia). The White House, in a fact sheet titled "Safeguarding America from National Security Risks of Connected Vehicle Technology from China and Russia", said, “The Biden-Harris Administration is committed to ensuring that our automotive supply chains are res...

As we approach the end of 2024, our Talking Heads series delves into conversations with the practice leads at AutoTechInsight. The aim is to explore the challenges and opportunities that lie ahead in their respective domains. In 2024, the automotive sector faced a series of challenges that tested its adaptability. Supply chain disruptions, coupled with declining raw material costs like lithium, added to these difficulties. Amidst these challenges, manufacturers began pivoting toward plug-in h...

This past week the Turin Chamber of Commerce and the National Association of Automotive Industry Supply Chain (ANFIA) have presented the 2024 edition of their annual survey of automotive suppliers. The survey, formally known as the Observatory on Italian Automotive Components and Mobility Services, enlisted the help of 2,135 automotive suppliers. It comes at a troubling time for the sector with the iconic home plant of Stellantis's Fiat—and Europe's oldest plant—in the shape of the vast Mira...

The US Commerce Department issued a notice of proposed rulemaking (NPRM) on Monday (Sept. 23) which, if approved, would ban the sale or import of vehicles that incorporate connectivity technologies plus systems incorporating prohibited hardware and software from countries of concern, specifically mainland China and Russia. The NPRM follows a process initiated by President Joe Biden in February and is based on public feedback to an earlier notice issued by the Commerce Department, which sought to...

Wireless communication with vehicle electronic systems has become inevitable, and it is only improving. This trend is the driving force for the extensive expansion of all connected services and the uptake of telematics hardware. In addition, growth drivers include connected, autonomous, shared and electric (CASE) mobility megatrends; maturing of 5G connectivity; vehicle-smartphone integration; favorable legislation/regulations; V2X mandates, etc. Future autonomous vehicles will have multiple wir...

In a press release dated Aug. 6, Neo Performance Materials has announced that its subsidiary, NPM Narva OÜ, known as Magnequench Sintered Magnets, has secured a contract to supply sintered rare earth magnets to a top European tier 1 electric vehicle traction motor supplier. Projected to run from the second half of 2026 through 2033, with peak supply expected in 2029, this collaboration validates Neo's capability to meet intricate customer requirements, reaffirming its leading position...

Thanks to the proverbial software-defined vehicle (SDV) that is helping the industry realize the buzz around CASE (connectivity, autonomy, shared mobility, electrification) megatrends, data flowing out of vehicle ecosystems have spiraled out of control. To put things into perspective, a typical connected vehicle can generate nearly 25 GB of data per hour and collect information from more than 100 different datapoints, thanks to embedded features including geolocation and navigation, companion ap...

In a significant development in deep-sea exploration, 200 million metric tons of manganese nodules rich in battery metals have been discovered in the Pacific Ocean, which are abundant in cobalt, nickel, copper and manganese. Found at depths of about 5,500 meters, these minerals, comparable to the polymetallic nodules in the Pacific's Clarion-Clipperton zone, constitute an estimated 610,000 metric tons of cobalt and 740,000 metric tons of nickel, which could substantially meet Japan's consum...

Stellantis CEO Carlos Tavares believes that the ongoing global transition to electric vehicles is a game of severe cost-cutting, and automotive suppliers must figure out how to reduce costs and adapt to the new requirements or risk losing their business in the next five to 10 years, according to a news report published by The Detroit News on May 29. Tavares was speaking during a fireside chat at the Berstein Strategic Decisions Conference in New York City, the report said. Tavares said tha...

In the latest Talking Heads feature, we spoke with Jeremie Bouchaud and Phil Amsrud, experts in E/E and Semiconductors at S&P Global Mobility. The focus of this discussion is on the pivotal role of semiconductors in today's technology landscape and the challenges arising from geopolitical tensions. We also consider how Mainland China has responded to export bans, leading to disruptions in the global automotive semiconductor supply chain. Click the link above to download the whole article.

As the world awoke on the morning of March 26 to the news that there had been a crash involving a container ship and the Francis Scott Key Bridge in the city of Baltimore, which had caused the bridge to collapse, immediate thoughts were with the safety and welfare of all concerned. Six people are missing, presumed dead in the tragic aftermath. Traffic through the port will be suspended until further notice and looks set to cause disruption to trade and supply chains. One of the sectors that w...

ReElement Technologies Corporation, a leading provider of high-performance refining capacity of rare earth and critical battery elements, has signed a sales and offtake agreement with USA Rare Earth LLC for the production and sale of ultra-pure rare earth elements using ReElement's patented purification and refining process, currently in production at its Noblesville, Indiana facility, ReElement announced on March 6. It said that the facility is currently being expanded at its Marion Advanced...

Those who think it is a case of job done in terms of action on climate change for the auto industry, in the wake of the industry’s rapid adoption of electric vehicles, need to think again. We were gently reminded of this when the United Nations Framework Convention on Climate Change (UNFCCC), in its recently released yearbook, highlighted that although businesses, investors and governments are stepping up to take climate action in greater numbers than ever before, it is not enough. The applica...

1. What has been banned by Mainland China? On December 21, 2023, mainland China imposed a ban on the export of rare earth magnet-making technology. The country’s Ministry of Commerce released a revised version of the Catalogue of Technologies Prohibited and Restricted from Export, which includes the ban on export of technology used for making rare earth magnets. As per the country, the revised ban and regulations are implemented with the intent to safeguard its national security and public ...

Geopolitical tensions and Yemen-based Houthi militant attacks in the Red Sea and Gulf of Aden are exposing the vulnerability of global trade to regional conflicts, leading to detours, delivery delays and other repercussions for the auto industry.  Initial disruptions and global response The global shipping industry has faced major disruptions since December 2023, due to attacks on Western cargo ships that the Houthi have alleged to have affiliations to Israel. The Houthi have instigat...

The development of automotive hypervisor solutions is being fuelled by an increase in the use of embedded virtualization at the device level to support different operating systems. To support Infotainment multimedia and connected services, as well as safety-critical instrument clusters for electric vehicles and sophisticated safety features with ADAS L0 and L1, primary use cases may be seen in the cockpit domain electronics. Vehicles in the Entry and Mid-Price classes, supported by Chinese OEMs,...