China issues rare earth licenses to suppliers of top 3 US automakers sources say

BEIJING/WASHINGTON - China has granted temporary export licenses to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing’s export curbs on those materials.

At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck.

China’s decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

China’s dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with US President Donald Trump. China produces around 90 per cent of the world’s rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts.

Suppliers of three big US automakers, General Motors, Ford and Jeep-maker Stellantis got clearance for some rare earth export licenses on June 2, one of the two sources said.

GM and Ford each declined to comment. Stellantis said it is working with suppliers “to ensure an efficient licensing process” and that so far the company has been able to “address immediate production concerns without major disruptions.”

China’s Ministry of Commerce did not immediately respond to a faxed request for comment.

China’s critical-mineral export controls have become a focus on Mr Trump’s criticism of Beijing, which he says