Trump pledge of quick China magnet flows has yet to materialize
Morris Hammer, who leads the US rare earth magnet business for South Korean steelmaker Posco Holdings Inc., said Chinese officials have expedited shipments for some major US and European automakers since Trump announced the agreement.
China’s Advanced Technology & Materials said Wednesday it had obtained permits for some magnet orders, without specifying for which destinations.
The company’s customers include European aerospace giant Airbus SE, according to data compiled by Bloomberg.
Around half of US suppliers to Toyota Motor Corp., for example, have had export licenses granted, the company said – but they’re still waiting for those materials to actually be delivered.
It’s likely some of the delays are transport-related, one of the people said.
Even with permits coming online, rare earth materials are still scarce because overseas shipments were halted for two months starting in April, depleting inventories.
Trump’s agreement “will allow for rare earths to flow out of the country for a short period of time, but it’s not helping the auto industry because they’re still talking shutdowns,” Hammer said.
“Nobody trusts that this thaw is going to last.”
For many automakers, the situation remains unpredictable – forcing some to hunt for alternatives to Chinese supplies.
Two days after Trump touted a finalized trade accord in London, Ford Motor Co. chief executive officer Jim Farley described a “day-to-day” dynamic around rare earths licenses – which have already forced the company to temporarily shutter one plant.
General Motors Co. has emphasized it’s on firmer footing in the longer term, because it invested in domestic magnet making back in 2021.
The automaker has an exclusive deal to get the products from MP Materials Corp. in Texas, with production starting later in the year.
It has another deal with eVAC of Germany to get magnets from a South Carolina plant starting in 2026.
In the meantime, GM and its suppliers have applied for permits to get magnets from China, a person familiar with the matter said.
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