Tesla CEO Elon Musk said China’s recent suspension of certain rare earth magnet exports is affecting the company’s development of its humanoid robot, known as Optimus. China is currently the world’s sole producer of heavy rare earth metals and supplies around 90% of the magnets derived from them, which are essential to producing advanced electric motors used in Tesla’s robots.
What is Tesla saying about this rare earth trade restriction?
During Tesla’s latest earnings call, Musk stated that the export restrictions are limiting the company’s access to key components needed for high-performance electric motors used in its robots. He also noted that Tesla is in active discussions with Chinese officials to address the situation.
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Why did China suspend rare earth exports?
Earlier this month, China suspended exports of both heavy rare earth metals and their magnets. The suspension applies to all countries and is seen by analysts as part of Beijing’s broader response to increased tariffs imposed by the United States under the Trump administration.
How will this impact Tesla’s production of the robots?
The export restrictions may delay Tesla’s timeline for mass production of its humanoid robots. Musk had previously said that “thousands” of Optimus models will be produced this year, with a long-term goal of reaching 1 million by the end of the decade.
What happens next?
China’s regulations call for its Ministry of Commerce to make decisions on export license approvals for heavy rare earth materials within 45 working days of the announcement restricting them, which was issued April 4.
However, experts have warned that licenses involving the United States could be subject to extended delays due to ongoing trade tensions, with some estimating approvals could take six months or longer.
