China has issued rare earth export licenses to suppliers of the top three U.S. automakers, Reuters reported on June 6, temporarily easing supply chain bottlenecks triggered by its sweeping export controls in April.

The six-month licenses were quietly granted to suppliers working with General Motors, Ford, and Stellantis, two sources familiar with the matter confirmed. The development follows a wave of concern across U.S. industries reliant on China’s near-monopoly over rare earth elements essential for electric vehicles, electronics, and defense.

While Beijing has not formally eased its broader restrictions, the move may signal selective flexibility under pressure.

Auto Industry Already Feeling the Pinch

Ford confirmed it had to shut down Explorer SUV production at its Chicago plant in May due to rare earth shortages. Stellantis stated it had managed to “address immediate production concerns without major disruptions” and is cooperating with suppliers to streamline the licensing process.

GM declined to comment on the matter.

Rare Earths as a Geopolitical Lever

China produces about 90% of the world's rare earths. Its April curbs on rare earths and magnet-related exports were widely seen as retaliation in the ongoing trade standoff with Washington, particularly under the Trump administration.

Former President Trump criticized Beijing’s restrictions, accusing it of violating a recent truce on tariff rollback discussions.

Ongoing Uncertainty and Surveillance

Despite the temporary licenses, industry insiders remain wary. “It’s up to them [China] to show that they are not weaponizing it,” one source said. Meanwhile, China has introduced a rare earth tracking system aimed at reducing smuggling and increasing state oversight.