Faced with tightening export controls from China, German truckmaker Daimler Truck is ramping up inventories of key raw materials to protect against supply disruptions, CEO Karin Rådström said Tuesday at a press conference in Gothenburg.
Citing lessons learned during the semiconductor crisis of the COVID-19 pandemic, Rådström explained that the company had already begun stockpiling critical components like chips to reduce reliance on just-in-time delivery systems — even though this approach requires tying up more capital.
“With everything that’s going on in the world right now, this seems to be a good and necessary strategy,” she told reporters.
A fresh concern is China’s new rare earth export licensing regime, implemented in April. The measures have slowed the flow of critical materials such as neodymium and dysprosium, used in vehicle motors, sensors, and electric power systems.
China currently dominates the rare earths market, controlling the vast majority of global production and processing capacity. Automakers fear that bureaucratic delays or political tensions could choke supply lines vital for the green transition.
While Daimler Truck has not yet experienced production halts, Rådström acknowledged the company is monitoring the situation closely. “So far, we seem to be getting what we need,” she said, adding that their purchasing department considers it a top priority.
