By Christina Aman and Lori Chen
Berlin/Beijing (Reuters) -The thirst of mass exclusion in the car supply circuit fades, as Chinese magnets on rare land are beginning to flow, although car manufacturers and suppliers claim that production plans are still facing the uncertainties and a constant risk of shortage.
European suppliers have received sufficient licenses to avoid the widespread interruptions provided for earlier this month, but hundreds of permissions remain pending, said NILS Paul, a market leader in the CLEPA Suppliers Association.
The degree of issue is “accelerating” and has increased to 60% of 25%, he said, but cases where end users are based in the United States or where the products move through third countries such as India take longer or are not prioritized.
“In general, the feeling is that we will probably still have production in July and that the impact will be manageable,” he said.
“Maybe here -there will be a production line, but for the moment we have avoided this.”
Volkswagen said in a statement about Reuters that the delivery of rare earth components is stable, while the opponent Stellantis said he had dealt with his immediate production problems.
China limited the exports to seven rare lands and related magnets in April in revenge for US tariffs.
Three months later, there remains a huge uncertainty about how it intends to polish its opaque and complex export licensing system.
As the restrictions were imposed, the export of rare lands from China has fallen approximately 75%, forcing some production lines of the automaker to stop in Asia, Europe and the United States.
From “full panic” to “goal minimum”
The White House said on Thursday that he had signed a deal with China to accelerate the rare approval of the Earth without providing details. Beijing said that hours later, both sides had confirmed details of the deal reached in London earlier this month, which was intended to allow the emission of the rare land and would cultivate export licenses in accordance with the law.
None of the parties described in detail the changes in the existing export licensing system.
US Department of Finance Secretary Scott Bensten said in an interview with Fox Business Network on Friday that, according to the agreement announced on Thursday, rare land shipments in the United States from China will be accelerated to all the companies that have previously received them regularly.
“I’m confident now … The magnets will flow,” Besten said. “This is a de -escalation.”
Two weeks ago, the automotive industry was in “full panic”, but licenses approval from China accelerated and now there is a smaller threat of sudden stopping, according to the CEO of a leading car supplier in the United States and a source with knowledge of the supply chain at a major European car manufacturer. They both wanted not to be baptized because of the sensitivity of the problem.