Ford, GM, Stellantis Reportedly Get Rare-Earth Supply Boost From China After Trump-Xi Call

China has reportedly granted temporary export licenses to rare-earth suppliers of General Motors (GM), Ford (F), and Jeep-maker Stellantis (STLA), known as Detroit's 'Big Three.'

According to a Reuters report, at least some of the licenses are valid for six months. It remains unclear how much material is covered under the approvals or whether the move indicates a broader shift in China's licensing policy.

Shares of Ford and Stellantis rose more than 2% in morning trade on Friday. Meanwhile, General Motors' stock gained around 1%.

However, VanEck Rare Earth and Strategic Metals ETF (REMX) continued to trend lower, falling 1.1% on Friday.

The approvals come after a 90-minute phone call between U.S. President Donald Trump and Chinese President Xi Jinping on Thursday. 

Trump posted on social media that“there should no longer be any questions respecting the complexity of Rare Earth products,” referring to the licensing challenges and U.S. reliance on China's supply chain.

In April, China imposed broad restrictions on exports of rare earths and related magnets, citing national security concerns in the context of escalating U.S. tariffs. The restrictions triggered supply chain disruptions across sectors, including automotive, aerospace, semiconductors, and defense.

China accounts for roughly 90% of global rare-earth production and has used its dominance as a strategic lever in trade negotiations.

Stellantis told Reuters it was working closely with suppliers to ensure an“efficient licensing process,” and had so far managed to address immediate production risks without significant disruptions.

Ford recently halted production of its Explorer SUV at a Chicago facility due to rare-earth shortages. The company also suspended its full-year financial outlook for 2025, citing tariff-related uncertainty. Ford expects a $2.5 billion gross profit impact and a $1.5 billion hit to net profit.

Stellantis likewise pulled its full-year guidance, while General Motors lowered its 2025 adjusted earnings target to between $8.25 and $10 per share, citing a $4 billion to $5 billion projected tariff-related impact on adjusted earnings before interest and tax (EBIT).

Ford's stock is the only one in the green among the three, with gains of more than 3% this year. Meanwhile, Stellantis' stock has fallen more than 23%, and General Motors' shares are down more than 10% over the same period of time. 

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