China has issued rare earth magnet export licenses, approving suppliers for Volkswagen.
According to Reuters, citing sources from Volkswagen and the industry, China has granted export licenses to at least four rare earth magnet producers, including a supplier of the German automaker. This is the first issuance of such licenses since China's restrictions on exports last month, indicating that these critical materials will continue to be exported.
Three sources said that a company in Baotou, which produces magnets for electric and hybrid vehicle motors, received an export license for Volkswagen in late April. One of the sources added that Volkswagen has reached out to China for help during this process.
Volkswagen responded to Reuters' inquiries by saying, "We maintain close contact with our suppliers and have received indications that a limited number of magnet suppliers for the Volkswagen Group have been granted Chinese export licenses." The company declined to provide further details.
Two of the sources said that a publicly listed company in Beijing has obtained at least one license. A source added that companies in Baotou and Anhui have also obtained at least one license. Due to the sensitivity of the matter, these sources declined to disclose their identities. These four magnet producers and the Ministry of Commerce of China did not immediately respond to requests for comment.
The report noted that export licenses are issued on a per-customer basis, and it is unclear whether all customers of these four companies have been approved by China. One of the sources said that licenses were only issued to suppliers for European and Vietnamese clients.
However, these licenses were issued before Monday's announcement of a truce in the trade war between the U.S. and China, and industry insiders said this may make it easier for American clients to obtain approval.
Just less than a month after China issued licenses in response to the Trump administration's tariff hikes, breaking industry expectations of a long wait, these are reportedly the first licenses issued since China implemented its restrictions. The involvement of Volkswagen and lobbying efforts by other Western major clients underscore this dependency.
Last month, Musk said that the suspension of certain magnet exports by China affected his plan to manufacture humanoid robots, noting, "This is more about supply chain issues, as China essentially requires an export license to export magnets anywhere, so we are negotiating with China to resolve this issue."
Original article: https://www.toutiao.com/article/1832028413804548/
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