Ford Motor Co. (NYSE:F) continues to struggle with securing a stable supply of rare earth magnets from China, essential components in its vehicle manufacturing process.

In a Friday interview with Bloomberg TV, Ford CEO Jim Farley characterized the situation as highly volatile, saying the company is operating on a “day-to-day” and “hand-to-mouth” basis regarding the supply of these critical materials. The shortage has already had operational impacts—last month, Ford temporarily halted production at its Chicago plant, which assembles the Explorer SUV, due to limited availability of rare earth inputs.

While Farley expressed cautious optimism about recent trade negotiations between the U.S. and China, he admitted there has been no noticeable improvement in the flow of magnet exports. Ford has submitted several applications to China’s Ministry of Commerce (Mofcom) for export approvals, but those permits are being processed individually and slowly.

Meanwhile, President Donald Trump recently announced that talks with Chinese officials had resulted in a commitment from Beijing to expedite export license approvals for rare earth materials. However, it remains unclear when that agreement will translate into tangible supply chain relief for automakers like Ford.

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