By Emma Whitaker 
Ford Motor Company CEO Jim Farley pulled no punches at the Aspen Ideas Festival, warning that a critical shortage of rare earth magnets is crippling U.S. auto production while praising China’s electric vehicles (EVs) as “leaps and bounds ahead” of their Western counterparts.
In a candid discussion with biographer Walter Isaacson on June 27, Farley revealed he’s visited China six or seven times over the past year, gaining firsthand insight into its booming EV market. “It’s humbling,” he admitted. “China produces 70% of the world’s electric vehicles, and their in-car tech is next-level. You step into a Chinese EV, and your digital life syncs seamlessly—no phone pairing needed. Huawei and Xiaomi are baked into these vehicles.”
Farley pointed out that American tech giants like Google and Apple have “opted out” of deep automotive integration, leaving U.S. manufacturers like Ford at a disadvantage. “The cost, quality, and tech in Chinese EVs are unmatched in the West,” he said, stressing the urgency of catching up. “We’re not just competing in EVs—we’re up against China globally. If we don’t step up, Ford’s future is on the line.”
The CEO didn’t shy away from praising Chinese competitors, particularly Xiaomi. Last year, Farley called Xiaomi “a consumer brand juggernaut” and admitted to driving their debut EV, the SU7, for six months after shipping one from Shanghai to Chicago. “I don’t want to drive anything else,” he confessed.
But Farley’s admiration for China’s EV prowess was tempered by frustration over supply chain woes. He revealed that Ford has idled some factories in recent weeks due to a lack of high-power magnets, a critical component for EV motors. China’s recent export controls on rare earth magnets—implemented after U.S. tariffs on Chinese goods in April—have slashed supplies to Western manufacturers. According to The Wall Street Journal, magnet exports to the U.S. plummeted 93% year-over-year in May, sending shockwaves through the auto, defense, and electronics industries.
“Without China, we can’t get these magnets,” Farley said, noting that Beijing’s new approval process for rare earth exports has created bottlenecks. He urged the U.S. to build a domestic supply chain for critical auto parts to reduce reliance on foreign materials.
Farley’s blunt remarks underscore a stark reality: as China solidifies its dominance in EVs and critical resources, American automakers face an uphill battle to stay competitive.
Andreas Lundberg 
Dale Chaucer