Reuters reports that automakers worldwide are in “full panic” over China’s export restrictions on rare‑earth magnets that are used in electric vehicle (EV) motors, hybrids, sensors, and much more in modern vehicles. China controls close to 90% of these materials, and global vehicle production could see serious disruptions if this persists. Numerous problems can and likely will arise because of it, including factory production shutdowns by mid-July and vehicles currently in production having to sit and wait to be completed as the bottlenecked supply chain allows these needed materials to be shipped and installed.
As shortages mount, automakers may need to adjust by substituting lower-quality materials, falling back on designs that may not be fully vetted or tested, leaving out certain parts or options that rely on these materials, and more. Such shortcuts, if they are taken, could compromise vehicle quality and lead to the risk of long-term defects that the end-consumer will have to contend with through warranty claims after purchase. It’s difficult to know for sure if such measures are already being taken to extend the life of the stocks of these materials that manufacturers currently have on hand.
If you have bought or are planning to buy a new EV/hybrid in 2026 or 2027, or any other vehicle, frankly, since almost every modern vehicle uses these materials in their designs, keep an eye out for issues like motor noises or vibrations, defective sensors, early battery or charging system failures, or other electrical system defects.
If you think you may be experiencing such issues with your new vehicle, make sure you document the problems as they occur as best you can, and as safely as possible. Take the vehicle back to the dealer for warranty repairs as soon as practical after the defects show up so the manufacturer can be given a chance to fix the problem and keep doing it each time the problem happens. Insist on a repair record from the dealer, even if the dealer claims it is not a defect that can be ‘reproduced’ or that the vehicle is ‘operating as designed.’ Often, these buzzwords are industry shorthand for ‘we know there is any issue, but we just don’t know how to fix it.’ The sooner you get to the third repair visit or the 20th day in the shop in a one-year period, the less money the manufacturer can take from you in the event the vehicle is later bought back.
If you’re concerned that shortages today become quality issues tomorrow, don’t hesitate to contact us. We offer free case reviews, and you will not owe us a cent unless you win. Not every lemon law lawyer is the same, and not all of them will do what is needed to make sure you get every penny of compensation to which you are entitled. Don’t settle for second best. Give us a call today and see how we can help.
