Beijing has approved more export licenses for the critical minerals and magnets in recent days, but supplies remain scarce and factories in the West are running out.

China has introduced a tracking system for its rare earth magnet sector, three sources said, as its export restrictions on them begin to cut off customers around the world.

Rare earth magnets, which are essential to car manufacturing as well as the defense and home appliance sectors, have started to run short in factories worldwide following China's export restrictions.