Tesla Comments Spur Plunge in China Rare-Earth Miner Shares
- Tesla won’t be using rare earths for next generation platform
- Other shares that count Tesla as key customer also fall
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Shares of Chinese rare-earth miners were heavily sold off following Tesla Inc.’s surprise announcement that the electric-vehicle maker will drop the use of the material in its future models.
Citing health and environmental risks that accompany mining the material, Colin Campbell, a Tesla official, said its next drive unit will use a permanent magnet motor that doesn’t use rare earths. The comments, made at Tesla’s investor meeting, caused JL Mag Rare-Earth Co. and Jiangsu Huahong Technology Stock Co. to close down more than 7% in mainland China.