While discussions about tariffs and electric cars dominate the landscape, there is a much less visible but equally worrying factor for the future of the automotive sector: rare earth minerals.

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This is what Jim Farley warned Farley, CEO of Ford, in a recent interview with Bloomberg.

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The United States' almost total dependence on China for these materials has put manufacturers like Ford in check, which face days of high uncertainty in their production chains.

"We're taking it day by day," said Farley. The executive is not referring only to technical or logistical problems: he is talking about a structural threat that could completely "break" the industry.

China controls the supply that maintains electrification

Although many might think that the biggest challenges for automotive brands are electric cars or environmental regulations, Farley focused on a different issue: essential components.

Rare earth minerals are present in all kinds of devices inside cars: from speakers to restraint systems. But they are also crucial in electric motors and batteries, pillars of the new mobility paradigm.

“Ninety percent of the US supply of rare earths comes from China,” Farley noted. This dependence is, for him, the industry’s true Achilles heel.

Factories stopped and trade tensions on the rise

Ford has been forced to temporarily shut down some of its plants in the United States, without specifying which ones or for how long. The underlying reason is not internal problems, but the changing global scenario, with fragile supply chains and tensions between powers.

Farley explained that “the international environment is increasingly full of bureaucratic procedures and nerves on edge,” which affects the daily operations of a manufacturer like Ford,that depends on international markets for both sales and production.

Tariffs, a factor that could worsen the crisis

The executive also addressed the potential impact of new trade measures. In particular, he warned about the effect that the tariffs promoted by President Donald Trump could have.

According to Farley, these policies could "open a hole" in the American automotive industry. While there have been some signs of rapprochement between Trump and Chinese President Xi Jinping, Ford is not optimistic: "Farley doesn't ask for words, he asks for agreements."

A situation that overwhelms Ford and affects the entire industry

Although Ford is the largest automaker in the United States and one of the main exporters, its situation reflects a common problem throughout the sector: the lack of competitive alternatives to China's dominance over critical resources.

With the growth of electric vehicles and the pressure to decarbonize transportation, inputs such as neodymium, dysprosium, and lanthanum have become strategic resources.

Without a more diversified and stable supply chain, the industry could face increasingly frequent bottlenecks. Ford's warning can be seen as a call to look beyond the market and think about long-term industrial security.