Tesla’s Optimus robots have been affected by China’s latest export controls on rare earth magnets, CEO Elon Musk has announced. The restrictions imposed by China are one of the latest tit-for-tat moves in an escalating trade war between the Asian nation and the United States.
The restrictions impact samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. If companies in the US want to get their hands on the restricted rare earth elements and magnets, they need to get a license from the Ministry of Commerce.
Musk has said that Tesla is already working with the Chinese government to secure the magnets the company needs to build its Optimus robot. He said that the Chinese government is seeking assurances that the materials will not be used for military applications, something Tesla has confirmed.
Tesla is aiming to produce 5,000 Optimus units this year for deployment in its EV factories. Despite the export controls China has implemented, the company told investors on Tuesday that it still wants to deploy thousands of robots in factories this year. Given this, the export controls might adversely impact the following batch of robots after this, rather than this batch.
CNBC notes that Tesla, similar to the case with its cars, will face tough competition from Chinese firms creating humanoid robots. These export controls may exacerbate the issue and give Chinese companies even more of a lead against US rivals. Some companies to note out of China are Unitree Robotics and Agibot, which are seeking to mass produce their products this year.
Elon Musk has said he is positive about Optimus and other robots that Tesla wants to create, but warned that he expects his rivals to be predominantly Chinese, rather than American.
Source: CNBC
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