Despite China issuing some export licenses for rare earth materials, particularly to firms serving European clients, approvals remain sluggish and insufficient to meet growing demand. The delay is causing widespread concern among manufacturers across Europe. “The window to avoid significant damage to production in Europe is rapidly closing,” said Wolfgang Niedermark, board member of the Federation of German Industries, in a statement to the Financial Times. Volkswagen confirmed that its German plants had received limited rare earth supplies, noting that only a few licenses were granted to its suppliers. Other European companies continue to face serious disruptions in their export supply chain management due to China’s stringent and unclear export procedures. One executive described the situation as “untenable.” China’s new export rules require exporters to submit end-use certificates to prevent military diversion or re-export to the U.S. However, both exporters and buyers report that compliance remains confusing and difficult. India’s Mahindra & Mahindra criticized the certification process as opaque, while a Chengdu-based supplier said any military-related applications are immediately rejected.