Fact Check: Ford CEO Jim Farley stated that a shortage of rare earth minerals caused the automaker to temporarily shut down one of its plants in May 2025.

Fact Check: "Ford CEO Jim Farley stated that a shortage of rare earth minerals caused the automaker to temporarily shut down one of its plants in May 2025."

What We Know

Ford CEO Jim Farley confirmed in a recent interview that a shortage of rare earth minerals has significantly impacted the company's production capabilities, leading to the temporary shutdown of one of its plants in May 2025. According to CBS News, Farley stated, "We have had to shut down factories. It's hand-to-mouth right now." This shortage is attributed to increased export controls from China, which is the primary supplier of rare earth minerals, providing about 90% of the U.S. supply, as noted by the Geological Survey. These controls have made it difficult for U.S. automakers, including Ford, to secure necessary materials for production (Reuters).

The importance of rare earth minerals in automotive manufacturing cannot be overstated; they are essential for various components, including electric motors, batteries, and other critical systems. The recent trade tensions between the U.S. and China have exacerbated the situation, with China implementing stricter licensing requirements for exports of these minerals (Fortune).

Analysis

The claim that Jim Farley stated a rare earth minerals shortage led to a plant shutdown is supported by multiple credible sources. The information comes directly from Farley's interview with Bloomberg TV, where he elaborated on the challenges Ford faces due to the "day-to-day" nature of rare earth supply (Bloomberg). This aligns with reports from CBS News and Reuters, which both confirm that the shortage has forced Ford to halt production temporarily.

The sources reporting on this issue, including CBS News and Reuters, are reputable and known for their journalistic integrity. They provide detailed accounts of the situation, including the context of the trade relations between the U.S. and China, which adds depth to the understanding of the supply chain issues at play. Furthermore, the data regarding the reliance on Chinese rare earth minerals is corroborated by the Geological Survey, enhancing the credibility of the claims made by Farley.

However, it is essential to note that while the situation is critical, Ford's management has expressed optimism about resolving these supply issues through ongoing trade negotiations (Fortune). This indicates that while the current status is problematic, there may be potential for improvement in the near future.

Conclusion

The claim that Ford CEO Jim Farley stated a shortage of rare earth minerals caused the automaker to temporarily shut down one of its plants in May 2025 is True. This assertion is backed by reliable sources and direct quotes from Farley himself, highlighting the significant impact of supply chain disruptions on Ford's production capabilities.

Sources

1. Ford struggles with supply of rare earth magnets, CEO tells ...
2. Pièces pour Ford : références OEM, schémas et prix
3. Ford CEO says rare earths shortage forced it to shut factory
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5. Ford CEO says rare earth supply is 'day to day' after plant halt
6. Fiabilité 1.5 tdci 120 (Ford C-max) - Forum-Auto
7. Ford CEO Jim Farley Says Rare Earth Supply Is 'Day to Day'
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