The production of Tesla’s Optimus robots has been disrupted due to export restrictions on rare earth metals imposed by Beijing amid escalating trade tensions with Washington, according to Bloomberg.
During a shareholder meeting, the head of the electric vehicle manufacturer, Elon Musk, stated that the difficulties are caused by a “magnet issue.” Delays are expected to last for weeks.
“We are working on this with China. Hopefully, we will obtain a license to use rare earth magnets. China wants assurances that they are not used for military purposes, which is obvious. They will be used in the humanoid robot,” he said.
The billionaire, along with former U.S. presidential candidate Vivek Ramaswamy, heads the Department of Government Efficiency under the U.S. government. The organization’s task is to reform the government to reduce administrative costs and combat bureaucracy.
Beijing added seven rare earth minerals to its export control list in response to the tightening of tariffs by the U.S. Chinese authorities stated that the restrictions are necessary as the materials can be used not only in civilian sectors but also in military applications.
Musk noted that the impact of tariffs will be most significant on the energy business.
“The impact of tariffs on the energy business will be huge, as we supply LFP cells from China. We are in the process of commissioning equipment for local production of LFP cells in the U.S.,” he said.
In June 2024, Musk announced plans to release 1,000 or several thousand robots in 2025.
In October, at the “We, Robot” event, the entrepreneur showcased Optimus robots that walked among people, danced, talked to guests, and made cocktails. However, it turned out that some functions of the robots were performed remotely by humans.