Automotive News Daily Drive Nov. 12, 2025 | Toyota’s $10 billion U.S. investment; KPMG’s Lenny LaRocca
Nov 12, 2025
Join Lenny LaRocca, U.S. Automotive Industry Leader at KPMG, as he unravels the complexities of the automotive supply chain and the future of EV investments amidst market volatility. Molly Boygan, a seasoned Automotive News reporter, discusses the U.S.'s heavy reliance on China for rare earth minerals and the daunting task of reviving domestic processing capabilities. Together, they delve into the implications of Toyota's massive $10 billion U.S. investment and the shifting dynamics within the global auto market.
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How U.S. Rare-Earth Lead Eroded
- The U.S. once had a full rare-earth supply chain centered on Mountain Pass, California, including magnet production.
- Regulatory changes and China's investment eroded U.S. processing and manufacturing capacity over decades.
Regulation And China Shifted Supply Chains
- A 1980s U.S. reclassification of thorium raised waste rules, making domestic rare-earth processing costly.
- China concurrently built vertically integrated capacity and undercut costs via lower regulation and labor expenses.
U.S. Can't Quickly Catch China In Minerals
- Molly Boygan and analysts say the U.S. has the geology but lacks processing scale and vertical integration to match China soon.
- The U.S. could build an insurance-grade supply chain, but matching China's global cost edge would take decades and concerted government action.