Ford Motor Company confirmed Friday that its Chinese rare-earth magnet suppliers received new, streamlined export licenses from the Chinese government. These suppliers were included in the first group approved under the new system.
The move is expected to facilitate larger and more consistent shipments of the crucial components. Rare-earth magnets are vital for manufacturing, particularly for electric vehicles (EVs).
These new 'general licenses' are part of an agreement designed to reduce logistical hurdles and shortages plaguing the auto industry. These issues arose after China implemented stricter export controls earlier this year.
Ford expressed satisfaction with the approvals for its suppliers. However, the company encouraged the U.S. and Chinese governments to continue collaborating to fully resolve ongoing supply chain challenges.