China’s export restrictions destroy Tesla’s robotics plan
China’s halt on the export of broad, critical minerals and magnets in retaliation against US tariffs has destroyed some of Elon Musk’s plans to build humanoid robots. The very act of Beijing suffocating the supply of critical components underscores the urgent or re-shore need for rare earth mining and refinement, as well as advanced technology supply chains, if the US wants to maintain control in the 2030s.
On Tuesday, Musk revealed during a Tesla revenue call that plans to build a humanoid robot had hit a hurdle due to Beijing’s ban on certain rare earth metals and magnets important to the motors and actuators that power the robots.
Musk told investors that Tesla’s Optimus Humanoid robots operate in limited spaces and have electric motors that require special magnets.
“It’s impacted by the supply chain. Basically, China requires an export license to send it anywhere.
Mask warned that a lack of magnets could slow production of Optimus robots.
Its special rare earth magnet musk was referring to neodymium iron boron (NDFEB). It is important to power small, highly efficient motors used in robot joints and other movements.
China has a monopoly near NDFEB, controlling both the extraction and improvement of rare earths required to produce powerful magnets.
Public trade data compiled by counterparties and supply chain risk intelligence companies shows that Tesla appears to have sourced all NDFEBs from Chinese suppliers, including Beijing Zhongke Sanhuan High Technology…).
Sayari has found that 40.63% of the latest shipments to Tesla comes from China…
Tesla’s top suppliers
The problem with most of the global rare earth metal supply chain based in China is that Beijing can weaponize a global monopoly over the United States. US companies that produce robotics, drones and electric vehiclesCleantech, mobile phones, and many other products, as well as F-35 stealth fighter jets and nuclear submarines.
Tesla’s delay in humanoid robot serial production planning in the US is the clearest signal that America will need to introduce these supply chains to friends or re-shore to ensure that tomorrow’s technology is produced. Domination in the 2030s.
By zerohedge.com
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