China’s exports of rare earth magnets to the United States jumped 660% in June, marking a sharp rebound after new trade agreements eased export restrictions. According to China’s General Administration of Customs, outbound shipments surged to 353 metric tons, more than seven times May’s volume.
Rare earth magnets are critical components in electric vehicles, wind turbines, and military technologies. China currently supplies over 90% of the world’s rare earth magnets.
The sudden recovery follows a Sino-U.S. trade pact in June that resolved issues around rare earth mineral shipments. As part of the agreement, Nvidia plans to resume sales of its H20 AI chips to China, signaling broader tech cooperation despite geopolitical tensions.
Earlier this year, China added several rare earth materials to its export restriction list in response to U.S. tariffs, triggering a collapse in shipments during April and May. The resulting shortage forced some global automakers to suspend production.
Globally, China exported 3,188 tons of rare earth permanent magnets in June, a 157.5% increase from May, though volumes remain 38.1% below June 2024 levels.
Analysts expect shipments to continue recovering in July, as more companies have now secured export licenses. For the first half of 2025, total exports of rare earth magnets fell 18.9% year-on-year to 22,319 tons.