Workers assembled cars on the assembly line of the Volkswagen factory in Wolfsburg, Germany on March 7, 2025.
Sean Gallup | Getty Images News | Getty Images
China seems to provide probation for us and European auto giants warn The threat of production from rare earth shortages increases.
China’s Ministry of Commerce on Saturday explain It is willing to establish a so-called “green channel” for qualified export license applications to speed up the approval process to EU companies. A spokesman for the Ministry of Commerce said Wang expressed his hope that the EU would take “reciprocity steps” and take measures to promote compliance trade with China’s high-tech products.
The breakthrough comes after Chinese Commerce Minister Wang Wenao and EU Trade Commissioner Maros Sefcovic held trade talks last week in Paris, France.
Beijing also grants rare earth licenses to suppliers of American auto giants General Motors,,,,, Ford and Jeep Manufacturer Stellantis,,,,, Reuters report Friday, citing unnamed sources. The report said China’s Ministry of Commerce did not respond to a request for fax comment. CNBC has contacted GM, Ford and Stellantis.
In early April, China’s Ministry of Commerce imposed export restrictions on several rare earth elements and magnets widely used in the automotive, defense and energy sectors. Curb is part of a response to the U.S. president Donald TrumpTariffs on Beijing products have increased.
Some of the affected rare earth elements are a key component of combustion engines and electric vehicle production.
Maximilian Butek, executive director and board member of the German Chamber of Commerce in China, said the weekend announcement was certainly good news for European businesses, but noted that it was unclear whether the fast track channel would be suitable for large companies or more broadly for large companies.
Butek told CNBC, “This is a huge bureaucratic monster they created and I’m not sure if they can really speed up the process and give licenses to those who need them.”Early European version” on Monday.
Butek said the top European automakers will welcome diplomatic breakthroughs, while stressing the need for European groups to improve supply chain diversification.
On October 31, 2010, soil containing rare earth elements was transported at a port in Lianyungang, Jiangsu Province, China.
Reuters
“What all this surprises us is that China is even willing to draw this card because it is a measure of retaliation against tariffs imposed by the United States, right? As European companies, we are now in exchange for this trade escalation, which is not really where we want to be.”
He added: “Just proclaiming it is not enough, but they have to show it.”
China’s key mineral domination
China is The undisputed leader Key mineral supply chains Accounting About 60% of rare earth minerals and materials are produced worldwide. U.S. officials have warn This dominance poses a strategic challenge in the hub of more sustainable energy.
Some analysts have squeezed the entire industry of rare earth magnet supply with Global semiconductor crisis This has ruined automobile production during the coronavirus pandemic.
The European Automobile Manufacturers Association (ACEA) spoke with CNBC ahead of China’s announcement of plans to speed up the process of approval for rare earth exports and said some of its members start at risk of production disruptions next month.
Represents a car lobby group like Stellantis, Renault,,,,, Ferrari,,,,, public Volvo said China’s Ministry of Commerce’s rare earth export license has been spending “a lot of” processing time since the restrictions came into effect in April.
“Usually, global stocks of these magnets are low. And, given that China is a global supplier of bulk, this means that without these export licenses, these stocks have been gradually consumed since early April,” Jonathan O’Riordan, ACEA’s director of international trade, told CNBC on ACEA.
“We are gradually entering a very, very critical moment, and these stocks are now exhausted and we may see production disruptions,” he added.
General view of production line at Mercedes-Benz assembly plant in Rastatt, Germany on June 4, 2025.
Florian Wiegand | Getty Images News | Getty Images
ACEA’s warning follows a separate Ominous updates From the European Automobile Supplier Association.
The organization said last week that several auto supplier factories and production lines have been closed due to recent export restrictions in Beijing, and that rare earth stocks are expected to run out in the coming weeks.
Japanese automaker Suzuki motorHowever, due to China’s rare earth curb, Reuters suspended its rapid car production due to China’s rare earth curb. Report Thursday, two unnamed sources were cited. A Suzuki Motors spokesperson did not respond to a request for comment when contacted by CNBC.
Demand for rare earths and key minerals is expected to be Grow exponentially In the next few years Clean energy transition accelerates pace.
