Chinese authorities have issued temporary export licenses to companies supplying rare earth metals to Detroit’s “big three” automakers, Ford Motor, General Motors, and Stellantis, Reuters reports, citing informed sources.
At least some of these licenses are valid for six months. The specific metals and volumes covered by the licenses have not been disclosed.
In April, China decided to restrict exports of a wide range of rare earth metals. The country accounts for about 90% of global rare earth metal production.
In May, Ford was forced to halt production of its Explorer SUVs at its Chicago plant for a week due to a shortage of these metals.
US President Donald Trump, who spoke by phone with Chinese leader Xi Jinping the day before, expressed hope that trade in rare earth metals would return to normal.
According to one of Reuters’ sources, last week the Chinese authorities also issued export permits to suppliers of one of the US electronics companies, and this week to suppliers of a US non-automotive company.
Ford shares rose 2% in Friday trading, GM shares rose 0.9%. Stellantis shares added 2.4% in New York.
