Chinese authorities have issued temporary export licences to companies supplying rare earth metals to Detroit’s “Big Three” carmakers Ford Motor, General Motors and Stellantis, Reuters reports, citing informed sources.
At least part of these licences are for six months. Which metals and what volume they cover is not reported.
In April, China decided to restrict exports of a wide range of rare earth metals. The country accounts for about 90 per cent of the world’s REM production.
Ford in May was forced to halt production of Explorer SUVs at its Chicago plant for a week due to a shortage of such metals.
US President Donald Trump, who spoke by phone with Chinese leader Xi Jinping the previous day, expressed hope for the normalisation of REM trade.
A Reuters source said Chinese authorities also issued an export permit to suppliers of a US electronics company last week and to suppliers of a US non-automotive company this week, according to a Reuters source.
Ford shares are up 2 per cent in Friday trading, while GM is up 0.9 per cent. Stellantis shares add 2.4 per cent in New York.