BEIJING/WASHINGTON, D.C.: In a rare move aimed at easing mounting supply chain pressure, China has issued temporary export licenses to rare-earth suppliers serving the top three U.S. automakers, two sources familiar with the matter told Reuters.

The licenses — some of which are valid for six months — come amid growing concern over disruptions triggered by Beijing’s strict curbs on rare earth exports. The approvals were quietly granted on Monday to suppliers working with General Motors, Ford, and Stellantis, according to one of the sources.

It remains unclear how much material the licenses cover or whether this reflects a broader shift in Beijing’s licensing strategy, which industry groups have described as slow and restrictive, choking critical material flow to manufacturers around the world.

In April, China tightened controls over the export of rare earths and related magnets, a decision that has rattled the auto, aerospace, semiconductor, and defense sectors. China dominates global rare earth production, accounting for about 90 percent of global output, and holds significant influence over the minerals needed for EVs and other advanced technologies.

So far, the U.S. automakers have avoided major shutdowns. Stellantis said it is working with suppliers “to ensure an efficient licensing process” and has managed to “address immediate production concerns without major disruptions.”
GM and Ford declined to comment.

The approvals follow a similar green light granted to a U.S. electronics firm’s suppliers last week and another to a non-auto U.S. company, the source added.

China’s Ministry of Commerce did not respond to a faxed request for comment.

President Donald Trump has recently ramped up criticism of Beijing’s mineral policies, calling them a breach of the latest tariff rollback agreement. In a call with Chinese President Xi Jinping this week, Trump said there “should no longer be any questions respecting the complexity of Rare Earth products.” Both sides agreed to resume trade talks soon.

The stakes are already showing: Ford halted production of its Explorer SUV in Chicago for a week in May due to a rare-earth shortage, the company confirmed.

“It’s up to [China] to show that they are not weaponizing it,” said one of the sources. Meanwhile, China has also launched a rare earth magnet tracking system aimed at tightening oversight and curbing smuggling.