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Supply chain disruptions are putting European car parts production and the green transition at risk. Recent export restrictions have exposed Europe’s dependence on external suppliers for permanent magnets and rare earth elements. These magnets are used throughout a vehicle: to start the engine, run the power steering, operate air conditioning and cooling systems, control braking, and support many other automated functions. CLEPA, the European association of automotive suppliers, has published a new position paper outlining urgent measures to secure industrial capacity, maintain competitiveness, and prevent future production stoppages.

“The supply chain challenges we face continue. With stockpiling virtually impossible, there is a continued risk of production stops in EU plants,” said CLEPA Secretary General Benjamin Krieger. “This is not just a temporary logistics issue – Europe’s full dependence on external suppliers poses a long-term structural risk that threatens EU competitiveness and undermines our ability to deliver on the green and digital transition.”

CLEPA’s position paper calls on the EU to adopt a cohesive and forward-looking strategy that addresses both direct and indirect dependencies across the critical raw materials value chain. Key recommendations include:

• Creating a competitive environment for raw materials projects
• Implementing short-term measures to prevent supply disruptions
• Developing a long-term European strategy for permanent magnets
• Fostering trade partnerships and strategic alliances
• Advancing coherent circularity strategies
• De-risking indirect dependencies

CLEPA emphasises the need for alignment with the EU’s broader industrial and environmental policies, including the Critical Raw Materials Act (CRMA) and the End-of-Life Vehicles Regulation (ELVR), to ensure Europe’s automotive industry remains resilient, competitive, and sustainable.