Elon Musk Warns of Rare Earth Shortage Impacting Tesla’s Robots
Tesla CEO Elon Musk has raised concerns over a potential delay in the production of Tesla's Optimus humanoid robots, following China’s recent halt on the export of magnets made with heavy rare earth metals. These magnets are crucial for the compact electric motors in the robots, especially in areas like the arms, where confined spaces demand high-performance components.
The Magnet Crisis
Rare earth magnets are up to 15 times more powerful than conventional ones and are essential in robotics due to their heat resistance and strength in small formats. Tesla relies heavily on magnets containing heavy rare earths to prevent overheating in tightly packed motor systems.
China, which produces nearly all of the world’s supply of these critical materials, has suspended exports in response to rising US tariffs. The move is part of a broader strategy that includes implementing a new export license system, significantly complicating access to the materials needed by international manufacturers.
Tesla's Supply Chain Challenge
“This is more affected by the supply chain,” Musk said during Tesla’s recent earnings call. “China now requires an export license to send out magnets, and we’re working through that.” He warned that shortages could slow the rollout of Optimus robots, which are currently being developed to handle daily tasks such as serving drinks or unloading groceries.
Global Implications
While Tesla faces direct challenges, other robotics firms may be less impacted. Companies like Agility Robotics have designed their machines with larger frames, allowing for more space and reducing dependence on specialized magnets.
Delays Likely
Experts suggest that export licenses from China could take months—if not longer—due to rising geopolitical tensions. Musk also mentioned reducing his advisory role to President Trump to focus on navigating Tesla through this period of supply uncertainty and declining profits.