Podcast: Rare Earths: Supply Chain Shortages & Supply Chain Risks in Automotive

Raw Materials • Rare Earths • Chips. They’ve all disrupted production before. None are secured for the future. The risk of recurrence? Higher than ever.

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The car of the future isn’t just about batteries and software
It’s built on fragile supply chains, exposed to geopolitics and resource nationalism
Every OEM knows: the next disruption is not a question of if, but when
Guest: Christian Grimmelt (Partner)
Find more info on rare earths and supply chain risks here: https://www.berylls.com/supply-chain-shortages/

Supply Chain Risks – Part I:

Raw Materials

From lithium for batteries to palladium for catalysts – raw materials define the limits of future mobility.

Volatility makes long-term planning nearly impossible for OEMs
What was once a procurement task is now a board-level risk

Part II:
Rare Earths – The “Old” Weak Spot, Now Critical Again

“Rare earths remain the automotive Achilles’ heel – Europe thinks it has a pathway to reduce dependency, but China’s choke points are structural, not cyclical”

How the headline(s) really impact the price:

New projects cover only a single-digit share of EU demand which is up by ~6x in 2030
Cost gap: New non-China projects often need NdPr ~$80–100/kg to break even vs. China ~$50–60/kg;
Policy reality: Without offtakes/floor prices/subsidies, projects stall when China leans on price

Part III:

Chips

Racing Toward a Chip Crunch: SDVs and AI Set the Stage for

2027 Shortage

Automotive Demand for small node chips (3-7nm) is rising due to SDV architecture
In parallel, industry demand is also rising driven by AI companies and data centers
Chip suppliers invest in new capacity but struggle to keep up with rising demand

Supply Chain Risks – Automotive Left Behind: AI Chips Win the Capacity Race

OEMs have to compete for capacity
AI/Datacenter chips have higher margins and per unit prices and are therefore more attractive for chip manufacturers

This Podcastepisode was recorded and published in September 2025 by Insights On Air, a Podcast by Berylls by Alix Partners

Authors

Berylls Podcast Team

Insights On Air

info@berylls.com