China says it may speed up rare earths application approvals from EU

China said on Saturday it was willing to accelerate the examination and approval of rare earth exports to European Union firms.

China has announced its willingness to expedite the examination and approval of rare earth exports to European Union firms, signaling a potential easing of its stringent export controls. This development comes amidst growing global concerns over the impact of China's dominance in the rare earth market on global supply chains, particularly in the automotive sector.

Suzuki Motor, a Japanese automaker, was the first major Japanese company to face direct disruptions due to China's export restrictions. The company suspended production of its Swift compact car models at its domestic plants, excluding the Swift Sport model, from May 26 to June 6, citing delays in parts procurement linked to slow Chinese export license approvals [1]. Similar disruptions have affected other major automakers such as Ford and BMW, which have also reported delays in securing rare earth parts [2].

China's export restrictions have highlighted the vulnerability of global car production to its dominance in rare earth elements. These elements are essential for electric and hybrid vehicle motors, among other high-tech uses. The International Energy Agency reports that China controls 92% of global rare earth output, making it a critical player in the supply chain [3].

The European Union has urged China to lift its export restrictions, with the bloc's trade chief Maros Sefcovic expressing concern over the alarming situation in the European car industry. The EU's request was made during a meeting with Chinese Commerce Minister Wang Wentao in Paris on Tuesday [2].

India, another major importer of rare earth magnets, is also facing significant challenges. Indian automakers are at risk of a crippling shortage of rare earth magnets due to China's export curbs, which could disrupt production within weeks [3]. In response, India is set to send a high-level industry delegation to China next week to fast-track approvals for rare earth mineral shipments.

While China has agreed to further talks with the US to ease the supply of rare earth magnets, the extent to which these discussions will lead to concrete action remains to be seen. The geopolitical tensions between China and other major economies continue to impact the global supply of rare earth elements, highlighting the need for diversified supply chains and enhanced cooperation among nations.

References:
[1] https://www.business-standard.com/industry/auto/suzuki-swift-halt-japan-rare-earth-china-export-curbs-auto-impact-125060500466_1.html
[2] https://auto.economictimes.indiatimes.com/news/industry/china-silent-about-lifting-export-curbs-on-rare-earth-metals-amid-growing-concerns-in-india-world/121673608
[3] https://www.bloomberg.com/news/articles/2025-06-06/china-rare-earth-curbs-choke-production-by-indian-automakers-add-to-tensions