Chicago – June 06, 2025
China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers—General Motors, Ford, and Stellantis—according to two sources familiar with the situation. This move comes as supply chain problems start to appear due to China’s restrictions on exporting rare earths.
The licenses are expected to last for six months, but it is still unclear how much or what specific materials are included. It is also uncertain whether this means China plans to ease the process for granting rare-earth export licenses, which many in the industry have said is complicated and has caused delays in supply chains.
In April, China announced it would limit exports of several rare earths and magnets, which has caused problems for industries like automakers, aerospace companies, semiconductor makers, and defense contractors. China controls about 90% of the world’s supply of rare earths, and many in the auto industry have raised concerns about disruptions to production.
U.S. automakers like Ford have already felt the impact of these restrictions. In May, Ford had to temporarily stop production of its Explorer SUV in Chicago due to a shortage of rare earths.
The recent approval for rare-earth export licenses for automakers follows similar approvals for suppliers to U.S. electronics companies and other non-auto companies. However, the specific names of these companies have not been disclosed.
