China's Rare Earth Magnet Exports to US Surge After Trade Pact Reaches Agreement

China's exports of rare earth magnets to the US surged in June, following a trade pact agreement. The rebound came after months of disruption and indicated renewed momentum in critical mineral trade between the two countries. The spike in shipments followed a June agreement aimed at stabilizing the supply chain and alleviating concerns over US reliance on Chinese rare earth minerals.

Title: China's Rare Earth Magnets Exports to the US Soar in June

China's exports of rare earth magnets to the United States surged in June, marking a significant recovery following a trade pact agreement. The rebound came after months of disruption and indicated renewed momentum in critical mineral trade between the two countries. The spike in shipments followed a June agreement aimed at stabilizing the supply chain and alleviating concerns over U.S. reliance on Chinese rare earth minerals.

Outbound shipments to the United States from the world's largest producer of rare earth magnets surged to 353 metric tons in June, up 660% from May, data from the General Administration of Customs showed [1]. This sharp increase came after pacts were reached in June to resolve issues around shipments of rare earth minerals and magnets to the United States. Chipmaker Nvidia plans to resume sales of its H20 AI chips to China as part of the agreement [1].

The June export rebound signals that China is cautiously resuming supply flows under pressure from global customers. Governments across Europe, India, and the United States had urged Beijing to resume exports to stabilize the rare-earth market [2]. The subsequent sharp fall in shipments in April and May, due to the lengthy time required to secure export licenses, had upset the global supply chain, forcing some automakers outside China to halt partial production due to a rare earths shortage [1].

During the first half of 2025, exports of rare earth magnets fell 18.9% on the year to 22,319 tons. In total, China exported 3,188 tons of rare earth permanent magnets globally last month, up 157.5% from 1,238 tons in May, although the June volume was still 38.1% lower than the corresponding month in 2024 [1]. Shipments of magnets are likely to recover further in July as more exporters obtained licenses in June, analysts said [1].

Despite the export rebound, tensions remain. On July 18, China’s Ministry of State Security accused unnamed foreign intelligence agencies of smuggling rare earth materials through postal systems. The ministry vowed to intensify crackdowns on illegal trafficking, reinforcing the strategic and national security importance Beijing places on these resources [2].

The recovery in shipments indicates that the global supply chain for rare earth magnets is beginning to stabilize, albeit with ongoing geopolitical and trade uncertainties. The agreement with Apple will allow MP Materials to further expand its new factory in Texas to use recycled materials to produce the magnets that make iPhones vibrate [4]. The company expects to start producing magnets for GM's electric vehicles later this year and this agreement will let it start producing magnets for Apple in 2027 [4].

References
1. [https://finance.yahoo.com/news/chinas-exports-rare-earth-magnets-060543156.html](https://finance.yahoo.com/news/chinas-exports-rare-earth-magnets-060543156.html)
2. [https://www.wionews.com/business-economy/china-s-rare-earth-exports-soar-after-trade-war-restrictions-eased-1752826669837](https://www.wionews.com/business-economy/china-s-rare-earth-exports-soar-after-trade-war-restrictions-eased-1752826669837)
3. [https://www.reuters.com/world/china/chinas-exports-rare-earth-magnets-us-skyrocket-june-2025-07-20/](https://www.reuters.com/world/china/chinas-exports-rare-earth-magnets-us-skyrocket-june-2025-07-20/)
4. [https://www.newsday.com/news/nation/mp-materials-rare-earths-trump-china-l55231](https://www.newsday.com/news/nation/mp-materials-rare-earths-trump-china-l55231)