On Friday (June 6), according to sources cited by Reuters, Beijing has issued temporary rare earth export permits to suppliers of the three major U.S. car manufacturers.
Two sources stated that at least some of the permits have a validity period of six months. It is currently unclear the specific details regarding the quantity of export quotas released by China or the covered items.
One source revealed that the three major U.S. car manufacturers—General Motors, Ford, and Stellantis—have been granted partial rare earth export permits.
As of the deadline, both Ford and General Motors declined to comment on the matter, while Stellantis mentioned that they are working with suppliers to ensure a smooth export permit process and have been able to address current production issues “without significant production disruptions.”
The Chinese Ministry of Commerce did not immediately respond to Reuters’ inquiries.
Ford had temporarily halted production of its Explorer SUV line at a Chicago factory in May due to a rare earth shortage.
The rare earth supply issue has become a focal point of tension in U.S.-China relations. Former President Trump accused the Chinese Communist Party of violating the Geneva trade agreement reached between the two sides last month.
Trump had a phone conversation with Chinese leader Xi Jinping on Thursday, focusing on trade topics. Afterward, on the social media platform Truth Social, Trump disclosed that there should be “no more questions about the complexity of rare earth products” and revealed that the two sides’ teams would meet again soon.
Trump announced on Friday that U.S. representatives will meet with Chinese counterparts in London on Monday (the 9th) to discuss trade agreements. U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative Jamieson Greer will attend the meeting.
Reports suggest that it is currently unclear if this indicates that Beijing may be preparing to relax rare earth export permit procedures. Apart from the automotive industry, China also issued rare earth export permits to suppliers of an American electronics company and another non-automotive enterprise last week.
The industry generally believes that China’s rare earth export permit application process is cumbersome, leading to artificial supply bottlenecks. Rare earths are key materials for electric vehicles and high-tech products, with China producing around 90% of the global rare earth output.
Since April 4, Beijing has suspended nearly all exports of seven rare earth metals and strong magnets made from three of these metals, causing production disruptions for several U.S. and European car manufacturers.
On Thursday (June 5), Beijing stated that rare earths have significant dual-use attributes and implementing export controls is an internationally recognized practice.
(Some information in this article is based on reports from Reuters)