China's rare-earth magnet exports to US surge 660% in June
What's the story
China's export of rare earth magnets to the US has witnessed a major spike in June, rising by 353 metric tons (over 660%) from May. The surge comes after trade agreements were reached to address disputes related to the shipment of these critical minerals. Rare earth magnets are essential components for electric vehicles (EVs) and wind turbines, making this development significant. As part of these talks, NVIDIA also announced its plan to resume sales of H20 AI chips to China.
Supply chain disruption
China's retaliatory measures against US tariffs
In early April, China added several rare earth items to its export restriction list in retaliation against US tariffs. This move by the country, which accounts for over 90% of the world's rare earth magnet supply, resulted in a sharp decline in shipments during April and May, owing to the long wait times for export licenses. The delay rattled global suppliers and even forced some automakers outside China to suspend partial production due to a rare earth shortage.
Export recovery
3,188 tons of rare earth magnets exported in June
In June, China exported a total of 3,188 tons of rare earth permanent magnets. This was a whopping 157.5% increase from the 1,238 tons exported in May. However, it's worth noting that this volume was still 38.1% lower than what was exported during the same period in 2024. Analysts predict further recovery in magnet shipments for July as more exporters secured licenses in June.