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

Source Reuters

Is China using the rare earth Weapon in trade fight ?

Return of Hope for Car Company

China has given temporary export licenses to companies that supply rare earth materials to the top three U.S. carmakers: General Motors, Ford, and Stellantis (Jeep’s parent company).

These licenses are valid for six months and are meant to reduce supply chain problems caused by China’s recent export controls on rare earths. These materials are important for making electric cars, electronics, and military equipment.

China controls about 90% of the world’s rare earth supply, which gives it strong power in trade talks, especially with U.S. President Donald Trump. Ford had to stop making its Explorer SUV for a week in May because of the shortage.

While GM and Ford did not comment, Stellantis said it is working with suppliers to avoid delays. This move follows earlier approvals for other U.S. companies.

Experts say China now needs to show that it is not using rare earth materials as a tool to gain an advantage in the trade fight.