Fact Check: "Ford is currently awaiting approval for applications with China's Ministry of Commerce to export more rare earths, according to CEO Jim Farley."
What We Know
Ford's CEO, Jim Farley, recently stated that the company is experiencing significant challenges due to a shortage of rare earth minerals, which are crucial for automobile production. In an interview with Bloomberg TV, Farley mentioned that Ford is currently awaiting approval for applications submitted to China's Ministry of Commerce (MOFCOM) to export more rare earths. He specifically noted, "We have applications into MOFCOM and they are being approved one at a time" (CBS News, Bloomberg).
Rare earth minerals are essential for various automotive components, and approximately 90% of the U.S.'s supply comes from China, which has implemented stricter export controls that require businesses to apply for licenses to export these materials (CBS News). This situation has led to production disruptions, including the temporary shutdown of one of Ford's plants (CBS News).
Analysis
The claim that Ford is awaiting approval for applications to export rare earths from China's Ministry of Commerce is supported by multiple credible sources. Jim Farley's comments were reported by both CBS News and Bloomberg, which are reputable news outlets known for their coverage of business and economic issues. The context of the statement is also reinforced by the broader understanding of the current geopolitical landscape, where China has tightened its grip on rare earth exports amid trade tensions with the U.S. (CBS News, Bloomberg).
The reliability of the sources is high, as they are established news organizations that provide fact-checked information. Furthermore, the implications of rare earth mineral shortages on Ford's production capabilities have been corroborated by industry experts and reports, indicating that this is a pressing issue for the automotive sector (CBS News, Free Press).
However, it is essential to note that while Farley's statements reflect the current situation, the approval process for export applications can be unpredictable, as indicated by Ford's Chief Financial Officer, Sherry House, who mentioned that the process can vary in efficiency (CBS News). This adds a layer of complexity to the situation, but it does not detract from the veracity of Farley's claim regarding the pending applications.
Conclusion
The claim that "Ford is currently awaiting approval for applications with China's Ministry of Commerce to export more rare earths" is True. This statement is directly supported by comments from CEO Jim Farley and corroborated by multiple reputable news sources. The context of the ongoing challenges related to rare earth supply chains further substantiates the claim, highlighting the critical nature of these minerals in the automotive industry.
