Ford Motor (F) traded higher on Wednesday after Chinese rare-earth magnet suppliers to the automaker were included in the first batch of new export licenses issued by Beijing. The increase in shipments should reduce shortages of the vital components, according to Ford (F).
Rare earth magnets, particularly neodymium-iron-boron types, are considered vital for Ford’s (F) vehicle production due to their exceptional strength, efficiency, and compact size in electric motors and other systems
The issue became more magnified after China unveiled rare-earth export controls in April that forced companies to apply for licenses for every shipment in a move that gave the Chinese government leverage in gaining concessions from the U.S. “While we are pleased that some of our suppliers have secured these approvals, we urge the U.S. and Chinese governments to continue their collaboration to fully resolve supply chain issues,” Ford said in its statement provided to the media.
Shares of Ford (F) were up 2.2% in late Wednesday afternoon trading.