China Eases Rare Earth Magnet Export Curbs Amid Global Shortage

China has eased up on supply curbs for rare earth magnets, boosting shipments to 3,188 tons in June, including 353 tons to the US. This is a significant increase from May's 1,238 tons. The easing of restrictions follows a global supply squeeze and trade tensions. The US had threatened factory closures and sought a trade truce.

China has significantly eased its supply curbs for rare earth magnets, leading to a substantial increase in shipments in June. According to Chinese data, exports of rare earth magnets totaled 3,188 tons last month, marking a 157.5% rise from May's 1,238 tons [1].

Among these exports, shipments to the United States surged dramatically, reaching 353 tons in June, a 660% increase from May's 46 tons [2]. This surge follows a recent trade agreement aimed at resolving trade tensions and export restrictions that had disrupted global supply chains [3].

The trade agreement, reached in June, involved the United States reducing tariffs on Chinese imports to a flat rate of 55% from the previous 145%, while China reciprocated by easing restrictions on key exports, including rare earth minerals and magnets [1]. The agreement also included plans for chipmaker Nvidia to resume sales of its H20 AI chips to China, further easing trade tensions [1].

The export restrictions had caused a sharp decline in shipments during April and May, leading to production halts for some automakers outside China due to the scarcity of these critical minerals [1]. The easing of restrictions is expected to continue, with analysts predicting further recovery in July as more exporters secure the necessary licenses [3].

Despite the recent uptick, the first half of 2025 saw a decline in rare earth magnet exports, with volumes falling 18.9% year-on-year to 22,319 tons [3]. However, the June figures were still 38.1% lower than the same month in 2024 [3].

This development is significant for the global market, particularly for industries relying on these critical minerals, such as electric vehicles and renewable energy. The increased exports are likely to stabilize supply chains and reduce the risk of factory closures and disruptions.

References:

[1] https://eurasiabusinessnews.com/2025/07/20/in-june-chinas-rare-earth-magnet-exports-to-the-u-s-soared/
[2] https://www.bloomberg.com/news/articles/2025-07-21/global-magnet-crisis-subsides-as-china-eases-up-on-supply-curbs
[3] https://www.indexbox.io/blog/chinas-rare-earth-magnet-exports-to-the-us-surge-in-june/