Elon Musk Says China’s Rare Earth Export Ban May Delay Tesla’s Humanoid Robot

[JACK AYLMER]

TESLA CEO ELON MUSK SAYS CHINA’S HALT ON EXPORTS OF CERTAIN RARE EARTH MAGNETS IS AFFECTING THE COMPANY’S DEVELOPMENT OF HUMANOID ROBOTS.

CHINA CURRENTLY SUPPLIES THE WORLD’S ENTIRE PRODUCTION OF HEAVY RARE EARTH METALS-

AND 90 PERCENT OF THE MAGNETS MADE FROM THESE MATERIALS-

WHICH PLAY A CRITICAL ROLE IN THE HIGH-PERFORMANCE ELECTRIC MOTORS USED BY TESLA’S ROBOTS. 

HOWEVER, EARLIER THIS MONTH, CHINA SUSPENDED EXPORTS TO ANY COUNTRY OF BOTH HEAVY RARE EARTH METALS AND THEIR MAGNETS-

A MOVE THAT HAS BEEN SEEN AS PART OF BEIJING’S RETALIATION AGAINST THE TRUMP ADMINISTRATION’S INCREASED U.S. TARIFFS ON CHINESE GOODS.

DURING TESLA’S RECENT EARNINGS CALL, MUSK STATED THESE SUPPLY RESTRICTIONS ARE AFFECTING TESLA’S OPTIMUS HUMANOID ROBOT PROJECT-

AND ADDED THE COMPANY IS ACTIVELY WORKING WITH CHINESE OFFICIALS TO RESOLVE THE ISSUE.

THIS COULD LEAD TO DELAYS IN THE PRODUCTION OF TESLA’S ROBOTS-

WHICH MUSK HAD PREVIOUSLY AIMED TO CHURN OUT THOUSANDS OF THIS YEAR-

WITH A GOAL OF REACHING A TOTAL OF ONE MILLION OPTIMUS MODELS BY THE END OF THE DECADE.

WHEN THESE ROBOTS DO HIT THE MARKET, MUSK EXPECTS THEM TO SELL FOR BETWEEN 20 TO 30 THOUSAND DOLLARS-

AND BE CAPABLE OF PERFORMING TASKS LIKE HOUSEHOLD CHORES OR ASSEMBLY LINE WORK.

MEANWHILE, CHINA’S MINISTRY OF COMMERCE IS EXPECTED TO DECIDE ON EXPORT LICENSE APPROVALS INVOLVING HEAVY RARE EARTH METALS WITHIN 45 WORKING DAYS OF THE ANNOUNCEMENT RESTRICTING THEM-

WHICH CAME ON APRIL 4TH. 

BUT, EXPERT WARN THAT LICENSES INVOLVING THE UNITED STATES COULD FACE EXTENDED DELAYS DUE TO ONGOING TRADE TENSIONS-

WITH SOME ESTIMATING IT COULD TAKE SIX MONTHS OR MORE FOR CHINA TO GRANT SUCH LICENCES TO AMERICAN BUSINESSES.

FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER.