Business

Japanese Carmakers Cut Production Due to China Rare Earth Export Curbs
By Reuters | 08 Jul, 2025

Nissan and Suzuki are forced to cut back production due to a shortage of components requiring rare earths from China.

A charging cable is attached to a Nissan Leaf electric car at the Tokyo Motor Show, in Tokyo, Japan, October 24, 2019. REUTERS/Edgar Su/File Photo

Nissan Motor is scaling back production plans for its new Leaf electric vehicle model because China's rare earth export restrictions have led to a shortage of parts, Kyodo News reported on Tuesday.

The revised production of the new model, which is set to launch later this year, could complicate the Japanese carmaker's restructuring plans that include closing seven factories and reducing its workforce by 15%.

China's rare earth curbs have also led another Japanese automaker, Suzuki Motor, to temporarily suspended production of its flagship Swift subcompact, sources told Reuters last month.

(Reporting by Kantaro Komiya; editing by Barbara Lewis)