Interviewed by Izvestia, specialists predicted a lack of car deficiency due to the lack of one of the key components of the raw materials – magnesium produced mainly in China. The situation is largely related to the new environmental policy of the country’s leadership.
Since the autumn of 2021, the authorities of some provinces of China began to present new requirements for industrial enterprises aimed at reducing the use of non-environmental coal, primarily for the production of electricity. This led to interruptions in the supply.
This policy has already been reflected in the enterprises for the extraction and production of magnesium. They reduced supply to consumers. At the same time, China accounts for about 90 percent of the global production of this metal and about 95 percent of the import of the European Union. Many large aluminum manufacturers have already declared the lack of raw materials, which uses magnesium.
In addition, the situation may negatively affect the European and world automotive market. The European Automobile Producers Association (ACEA) expects magnesium reserves in the region to be depleted by the end of November, after which the production stops and closing of factories can begin. Also, experts predict problems in the automotive spare parts market, first of all for expensive premium class cars.
The last months of the global auto industry suffers from a shortage of chip, caused by several reasons: global supply failures and cessation stops due to a coronavirus pandemic, as well as ingenious demand from miners cryptocurrency.