China's new year-long general rare-earth export licenses boost shipments and aid some U.S. automakers while leaving many European firms uncertain.
China has begun issuing year-long "general" rare-earth export licenses, easing a licensing regime that had constrained global supply chains earlier in 2025.
The change follows high-level diplomatic engagement and replaces per-shipment approvals with standing permits for approved exporters, restoring predictability for some foreign buyers. Ford confirmed that several of its Chinese magnet suppliers received approvals under the new framework, offering immediate relief to electric vehicle production schedules.
November customs data show exports jumped 26.5% month-over-month to 5,493.9 tons, and year-to-date exports through November exceeded 58,000 metric tons, up 11.6% year-on-year. Beijing granted licenses initially to large firms including JL Mag Rare Earth, Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech.
Despite the rebound, issuance was selective: several European automakers, notably Volkswagen, were excluded from the first tranche, prompting concern in Berlin about persistent access risks. China still controls roughly 90% of global rare-earth refining capacity, so export policy remains a potent lever in trade and strategic diplomacy.
For industries from EVs and consumer electronics to aerospace and defense, the new license model reduces procurement uncertainty, but selective allocation underscores ongoing geopolitical risk in critical-minerals supply chains.