According to several US media reports citing Reuters, China has issued export licenses to at least four rare - earth magnet producers on this Tuesday (MAY 13), including suppliers of Volkswagen (OTCPK: VWAGY). This is the first approval since the Chinese government restricted the export of rare - earth magnets on April 4th, indicating that key materials will continue to circulate. 

It is reported that Baotou Tianhe Magnetic Material Co., Ltd. in China, which produces magnets for electric and hybrid vehicle motors, obtained a license from Volkswagen at the end of April. Zhongke Sanhuan obtained at least one license, and Baotou Inst Magnetic Industry and Dadi Xiong Advanced Magnetic Materials also obtained at least one license. This is the first time that licenses have been issued since China imposed restrictions on seven rare - earth elements and related materials in response to President Trump's US tariffs, breaking the long - awaited expectations of the industry. The report said that the licenses were also issued before the trade war truce announced on Monday, which should make it easier for US customers to win approval.