EUROPEAN automakers reeling from a global chip shortage have in recent days hastened to assure shareholders that shortages of magnesium are not, for now, a risk to their production plans.

However, car part suppliers and industry associations warn that if production in China, which accounts for 85 percent of global magnesium supply, does not pick up pace soon, automakers could be facing significant shortfalls of the material.

Carmakers do not ordinarily purchase large quantities of magnesium themselves. But part manufacturers supplying automakers with key components are heavily reliant on magnesium, which can be used by itself or combined with aluminium to reduce the weight of cars.

Making vehicles lighter is particularly useful for extending the driving range of electric vehicles, crucial for Europe’s energy transition plans.

Chip shortages have already extended delivery times for new cars, sometimes up to a year. Without a speedy recovery in China’s magnesium exports those queues could lengthen, an auto industry source said.

Auto firms Stellantis and BMW say they do not see an imminent problem with supplies. Others in the sector say their inventories and magnesium already in transit will see them through to early 2022.

But Volkswagen’s head of purchasing in an earnings call said a shortage was expected.

(SD-Agencies)