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American Focus > Blog > World News > China eases stranglehold on rare minerals in welcome news for GM, Ford: report
World News

China eases stranglehold on rare minerals in welcome news for GM, Ford: report

Last updated: June 6, 2025 9:45 am
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China eases stranglehold on rare minerals in welcome news for GM, Ford: report
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China Grants Temporary Export Licenses for Rare Earth Suppliers to US Automakers

According to sources familiar with the matter, China has granted temporary export licenses to rare-earth suppliers of the top three US automakers as supply chain disruptions emerge from Beijing’s export curbs on these materials.

The licenses are said to be valid for at least six months, with the specifics of quantity and items covered remaining unclear. This move could potentially signal China’s willingness to ease the cumbersome rare-earths licensing process that industry groups have criticized for creating a supply bottleneck.

Recently, President Trump and Chinese President Xi Jinping engaged in a lengthy phone call to address trade differences, with both sides agreeing to meet again soon.

China’s decision in April to restrict exports of rare earths and related magnets has caused disruptions in supply chains crucial to industries such as automakers, aerospace manufacturers, semiconductor companies, and military contractors worldwide. With China producing around 90% of the world’s rare earths, its dominance in this critical mineral industry has become a key point of leverage in the US-China trade war.

Suppliers of the top three US automakers – General Motors, Ford, and Stellantis – have received clearance for rare earth export licenses, allowing them to address production concerns and potential disruptions.

US auto companies have already experienced the impact of these restrictions, with Ford having to shut down production of its Explorer SUV due to a rare-earth shortage in May.

China’s Ministry of Commerce has yet to respond to requests for comment on these recent developments. The country has also introduced a tracking system for its rare earth magnet sector to enhance control and crack down on smuggling.

See also  Even The Fox News Poll Has Turned On Trump

Overall, the situation surrounding rare earth exports from China continues to evolve, with stakeholders closely monitoring the potential implications on global supply chains.

TAGGED:ChinaEasesFordmineralsNewsRarereportstranglehold
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