China grants first rare earth export permits since adding restrictions last month – report | Forexlive

However, not to the US though. One of the sources said that the permits were issued to suppliers for customers in Europe and Vietnam. As a reminder, China stepped up their rare earth export controls by restricting a further seven minerals last month here.

It is reported that there is at least four permits granted in this latest batch. Baotou Tianhe Magnetics is one of those suppliers who received a license for Volkswagen in late April. The supplier is one which makes the magnets used in electric and hybrid car motors. But the sources say that Volkswagen had reached out to Beijing for help in trying to make that happen.

Typically, it takes about two to three months for China to filter through requests for the permits. And since imposing the added restrictions last month, this batch of permits are the first ones to be granted. But again, it doesn’t seem like any US clients are part of the list whatsoever. And I wouldn’t expect that to change unless there is some real progress during this 90-day negotiation timeline.

Even if export controls fall short of an outright ban, it’s safe to say that there is an unofficial ban for exporting to the US for the time being.