China's Ministry of Commerce in early April imposed export restrictions on several rare earth elements and magnets widely used in the automotive, defense and energy sectors. Some of the affected rare earth elements are vital components to the production of both combustion engines and electric vehicles.

Suppliers of three big U.S. automakers, General Motors,, Ford and Jeep-maker Stellantis got clearance for some rare earth export licenses on Monday, one of the two sources said.

China has temporarily approved rare earth export licenses for suppliers of top US automakers General Motors, Ford, and Stellantis, raising concerns over supply chain disruptions exacerbated by trade tensions with the US.