Plenty of global companies lean on China for various minerals and rare earth magnets, putting them in a tough situation as the government drafts a new regulatory system, forcing the country to suspend exports in the meantime. Ford and other automakers were particularly impacted, forcing the automaker to temporarily halt production of the Ford Explorer after one of The Blue Oval’s suppliers was unable to provide the automaker with enough magnets to maintain production. However, China has opted to issue rare earth licenses for certain suppliers that provide automakers like Ford with the minerals they need to continue production at capacity.
According to a report from Reuters, said licenses are valid for six months, ensuring that automakers Stellantis, Ford, and General Motors get proper materials to continue production. Clearance for said materials was granted by Chinese officials on Monday, June 9th, 2025, easing the strain that the ban placed on the producers.
The approval for auto suppliers follows in the wake of a similar deal reached to benefit U.S. electronic firms, and another agreement granted to suppliers of a U.S. non-automotive company.
“We have to give the Chinese the benefit of the doubt that they’re working through this. It’s up to them to show that they are not weaponizing it,” Reuters’ source told the publication.
At this time, GM and Ford declined to comment. Stellantis, meanwhile, stated that the automaker is currently in talks with its suppliers in order “to ensure an efficient licensing process” and that is had been able to “address immediate production concerns without major disruptions.” China’s Ministry of Commerce also did not comment.
Hopefully, the temporary agreement will allow automakers like Ford to continue production of its models. Ford-backed lobby group Alliance for Automotive Innovation (AAI) penned a letter to the Trump administration in early May, voicing concerns that supply issues could result in short-term plant shutdowns.
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