Wall Street Breakfast Auto trouble brewing over rare earth curbs
Jun 5, 2025
The automotive industry is bracing for disruptions as China's rare earth curbs threaten supply chains. Kimberly-Clark is close to selling its international tissue business for $3.5 billion, while Citigroup announces 3,500 job cuts in its tech centers in China. Additionally, the podcast highlights market movements, including gains in crude oil and Bitcoin, and Varant Systems' remarkable growth driven by AI. Amid these shifts, there’s a focus on the broader economic outlook and its implications for various sectors.
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China's Rare Earth Controls Impact Autos
- China's rare earth export controls are causing substantial supply chain disruptions in the auto industry.
- These controls impact critical parts for both combustion engine and electric vehicles, causing production shutdowns in Europe.
EU Diversifies Rare Earth Supply
- The European Union is actively seeking to diversify its raw material supply chain to reduce reliance on China.
- It has identified 13 overseas projects in various countries to ensure sustainable supply for critical materials.
Kimberly-Clark Sells Tissue Business
- Kimberly-Clark plans to sell its international Kleenex and tissue business for $3.5 billion to focus on more profitable areas.
- The sale leaves the company concentrating on its larger North American and personal care divisions.