China Revives Rare Earth Magnet Exports Amid Geopolitical Tensions

In a move poised to alleviate industry concerns, China has granted export permits to key producers of rare earth magnets, including those supplying Volkswagen. These permits are the first issued since Beijing imposed restrictions last month, marking a critical development for the flow of essential materials.

Sources reveal that Baotou Tianhe Magnetics, which manufactures magnets used in electric and hybrid vehicles, secured a licence for Volkswagen in late April. The automaker actively engaged with Beijing to facilitate the process. Additional permits were granted to Zhongke Sanhuan, Baotou INST Magnetic, and Earth-Panda Advanced Magnetic Material, as revealed by industry insiders.

The issuance of these permits comes amid the backdrop of a trade war truce with the U.S., potentially easing the path for American businesses. This grants new hope as rare earths play a pivotal role in clean energy, defence, and automaking, underlining China's dominance in processing these elements.

(With inputs from agencies.)