China's rare earth magnet exports surge 75% in July to six-month high

China’s exports of rare earth magnets surged nearly 75% from June to reach a six-month high of 5,577 metric tons in July 2025, marking the highest monthly volume since January [1]. The increase reflects a recovery in global demand for materials critical to electric vehicle and green technology manufacturing [2]. Compared to the same period in the previous year, July’s exports were also 5.7% higher than the 5,278 metric tons shipped in July 2024, underscoring a modest but consistent annual trend [3].

The jump in export volumes follows a period of relative restraint in China’s rare earth shipments, with authorities maintaining relaxed but strategic export controls. Analysts have suggested that the easing of policy pressures has enabled a gradual return to stronger export levels, particularly for key downstream products like neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) magnets [4]. These materials are vital components in high-performance motors and generators used in renewable energy and automotive sectors [5].

The growth in July’s figures also highlights the broader role of China as the dominant supplier in the global rare earth magnet supply chain. With more than 80% of global processing capacity, China’s export movements closely track shifts in global market dynamics. The 5,577 metric ton figure suggests that downstream demand, particularly from advanced manufacturing hubs, is showing renewed strength [6].

While the data does not include specific details on destination markets or pricing changes, the monthly surge points to a potential easing in supply-side bottlenecks. It also raises questions about whether the trend will be sustained in the coming months, particularly as global demand for clean technologies continues to evolve [7].

Germany led with the most imports of rare earth minerals, with a volume of 1,116 metric tons. Its July shipment was also roughly 46% higher than the prior month [1]. The U.S. also saw a surge in rare earth shipments, up by 75.5% from the month before to 619 tons. Its shipments were also 4.8% higher than the same month in 2024 [3]. In the first half of 2025, China exported 32,569.2 metric tons of rare earth magnets, a 12% increase from the 29,095 metric tons shipped during the same period last year [1].

The bounceback of exports came after the U.S. and China agreed to a series of deals with Washington and Europe to increase shipments. The nations also agreed to ease the export control imposed in April by China in retaliation for U.S. levies [1]. Zhang Wei, senior commodities analyst at Asia Resource Capital, suggested that the surge of exports in June showed the change in bilateral agreements between China and the U.S. after months of a heightened trade war [1].

On Tuesday, China also removed rare earth export restrictions on India after a visit by Chinese foreign minister Wang Yi in New Delhi. Wang met with his Indian counterpart, Subrahmanyam Jaishankar, and acknowledged that the two countries should consider each other as partners and opportunities rather than adversaries or threats [1].

Sources:

[1] Reuters, China's rare earth magnet exports hit six-month high in July (https://www.reuters.com/world/china/chinas-rare-earth-magnet-exports-hit-six-month-high-july-2025-08-20/)

[2] Offshore, China's rare-earth magnet exports reached a six-month peak in July (https://energynews.oedigital.com/mineral-resources/2025/08/20/chinas-rareearth-magnet-exports-reached-a-sixmonth-peak-in-july)

[3] Cryptopolitan, July marks six-month high for China's rare earth magnet exports (https://www.cryptopolitan.com/chinas-rare-earth-magnet-exports/)

[4] TradingView, China Rare Earth Exports Hit 6-Month High in July (https://www.tradingview.com/news/te_news:479042:0-china-rare-earth-exports-hit-6-month-high-in-july/)

[5] Asia markets retreat as tech sector takes a hit, Japan stock fall from record highs on weak trade data (https://seekingalpha.com/news/4487259-asia-markets-retreat-as-tech-sector-takes-a-hit-japan-stock-fall-from-record-highs-on-weak-trade-data)

[6] Seeking, China's rare earth magnet exports touch six-month high as export curbs stay relaxed (https://seekingalpha.com/news/4487252-chinas-rare-earth-magnet-exports-touch-six-month-high-as-export-curbs-stay-relaxed)

[7] Offshore, The party is ruined by the MORNING BID EUROPE (https://energynews.oedigital.com/energy-markets/2025/08/20/the-party-is-ruined-by-the-morning-bid-europe)