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China weighs relief measures on rare earth exports for auto industry
CDG News Alert (< 1 min. read)
Anna del Villar
June 09, 2025
Driving the news: China is considering a "green channel" to speed up rare earth export approvals for European automakers facing potential production shutdowns, said China’s Ministry of Commerce.
For context: Beijing imposed export restrictions in April after Trump's tariffs, creating a severe shortage of materials essential for both gas and electric vehicles. With only 25% of license applications approved so far, some European plants have already shut down.
Why it matters: Time is running out. Europe's auto lobby warns production stoppages could start next month as stockpiles get exhausted.
What we're watching: There's word that China has approved licenses for GM, Ford, and Stellantis suppliers. But skeptics wonder if this “green channel” will actually work, or if it’ll struggle to deliver meaningful relief.
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