In addition to the lack of chips, there is now the threat of a lack of magnesium, which creates the risk that the entire automotive industry will stop.
China is facing a serious energy shortage. The Chinese are the largest producers of magnesium and currently produce only a small amount for export, he writes
HAK magazine. Various bodies are sounding the alarm bell because there is enough magnesium left to last for a maximum of two months. Magnesium is mainly used in the automotive industry to produce aluminum. Aluminum is ideal for parts that must have low weight, but still solid construction. Basically, without aluminum, no car will get off the production line.
China is currently the largest producer of magnesium in the world. More than 85% of world production is in the hands of this economic power. Almost half of the Chinese production is intended for the European market, which uses almost all the supplied magnesium for the production of aluminum. China would not be China if it did not take full advantage of this monopoly position. However, China is currently facing a serious energy shortage. As a result, 35 of the 50 factories in Yulin City, responsible for most of the magnesium production, must remain closed. The remaining 15 factories received an order to halve production! As a result, China is currently only able to meet needs within its borders.
The situation on the United State car market is somewhat better. America itself is a producer of magnesium, so the shortage affects them less. Magnesium shortage will especially affect European car manufacturers. European Aluminum, an interest group in the metal industry, is currently urging European governments to make policy quickly. That policy should focus on increasing magnesium production within European borders. This reduces dependence on Chinese producers. European aluminum indicates that if measures are not taken soon, there will be a serious shortage of aluminum within two months. As a result, various industries, including the automobile industry, will have to seriously reduce production, and in the worst case, even close down.
Now the question is what can European governments do in the short term to ensure that the car industry does not stop? In any case, it seems that stockpiling what is currently still available is not an option because magnesium is itself a raw material that is very sensitive to oxidation.
