China Boosts Rare Earth Magnet Exports to US

China’s exports of rare earth magnets to the United States jumped more than sevenfold in June compared to May, marking a strong rebound in the flow of vital components needed for electric cars and wind turbines following a trade agreement between Washington and Beijing.

According to Reuters, data from the General Administration of Customs showed on Sunday that shipments to the United States from China, the world’s largest producer of rare earth magnets, rose to 353 tons in June, a 660% increase from May.

This follows agreements reached last month to resolve issues related to shipments of rare earth minerals and magnets to the United States. These talks included Nvidia’s plan to resume sales of its H20 AI chips to China.

In early April, China, which accounts for more than 90% of the world’s rare earth magnet supply, decided to add several rare earth magnets to a list of export restrictions in retaliation for US tariffs. This caused a sharp decline in shipments in April and May due to the lengthy process of obtaining export licenses for these components, disrupting global supplies and forcing some automakers outside China to partially halt production.

China exported a total of 3,188 tons of rare earth magnets last month, a 157.5% increase from 1,238 tons in May, although the June rate was still 38.1% lower than the same month in 2024.

Analysts expect shipments of these components to increase further in July as more exporters obtain licenses in June.