Ford CEO Jim Farley Reportedly Says Automaker Is Struggling To Find Rare Earth Magnet Supplies: ‘It’s Hand-To-Mouth Right Now’

Ford Motor Co. (F) CEO Jim Farley reportedly said that the automaker is struggling to find rare 
earth magnet supplies that are key to its production operations, leading to a temporary shutdown of one of its factories.
    
According to a Bloomberg report, Farley stated that the supply of rare earths has been gradually decreasing from China, which has initiated a new approval process for the export of these rare earths.

“It’s day to day,” Farley said. “We have had to shut down factories. It’s hand-to-mouth right now.”

The Ford CEO pointed out that although he is pleased with the developments surrounding the U.S.-China trade deal, an improvement is yet to be seen in the flow of critical components.

“We have applications into Mofcom and they are being approved one at a time,” Farley said. Mofcom refers to China’s Ministry of Commerce.

President Donald Trump on Wednesday morning cheered the United States’ deal with China and said that the relationship between the two countries is excellent.

“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” Trump had said in his Truth Social post.

Trump stated that he will work closely with Chinese President Xi Jinping to revamp the U.S.-China trade relationship, which he believes will be beneficial for both nations.

“We’re educating the administration, we’re educating the Chinese leadership about how important these jobs in the Midwest are that are dependent,” he said, talking about the supply of these components.

Ford’s shares traded 0.33% lower on Friday morning. The stock has gained over 8% in 2025 but is down more than 12% in the past 12 months.

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