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Blow after blow for car industry: now magnesium shortage threatens to paralyze global production | Car

The automotive industry is already having a hard time due to the shortage of chips or semiconductors, causing many factories to shut down. There is now a threat of a new crisis in Europe due to a magnesium shortage.




Magnesium is essential for aluminum production. That material is needed on a large scale for building cars. It is used in gearboxes, steering columns and brakes, seat frames, at fuel tanks, in the bodywork and for many other parts.

About 85 percent of global magnesium production comes from China and much of that comes from Yulin City in Shaanxi Province. But due to an energy crisis, production restrictions have been imposed on many factories there. Of the fifty magnesium factories, only fifteen are still active. They also run at half power to meet the energy requirements. It will remain that way at least until the end of the year.

No alternatives

Analysts warn in The Financial Times that magnesium reserves in the rest of the world are rapidly dwindling. The German and European car industry, almost completely dependent on China for magnesium, threatens to get nothing in November. “There are no alternatives to aluminum production,” said Barclays analyst Amos Fletcher. “If the supply of magnesium stops, the entire auto industry may be forced to shut down.”

In that case, consumers will have to wait even longer for their new car, while the shortage of semiconductors has already doubled or even tripled delivery times.


Blow after blow for car industry: now magnesium shortage threatens to paralyze global production | Car
Source link Blow after blow for car industry: now magnesium shortage threatens to paralyze global production | Car

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