|
Getting your Trinity Audio player ready...
|
In June 2025, China’s exports of rare-earth permanent magnets to the United States soared by 660% compared to May, reaching 353 metric tons, according to data from the General Administration of Customs. The dramatic rebound follows a Sino-U.S. trade agreement reached in Geneva, which eased restrictions on critical mineral shipments and reopened supply channels disrupted earlier this year.
🔧 Background and Trade Tensions
- In April 2025, China imposed export controls on seven rare-earth elements and related magnets in response to U.S. tariffs, triggering global supply chain disruptions.
- The restrictions led to production halts in sectors reliant on rare-earth magnets, including automotive, electronics, and renewable energy.
- The June agreement included commitments from China to resume full supply of rare earths and magnets, while the U.S. relaxed certain tech export controls.
🌍 Global Impact and Recovery
- China exported a total of 3,188 metric tons of rare-earth magnets globally in June, up 157.5% from May, though still 38.1% lower than June 2024 levels.
- The U.S. was the second-largest destination, after Germany, reflecting its heavy reliance on Chinese magnets for high-tech manufacturing.
- Analysts expect further recovery in July, as more Chinese exporters secure licenses.
⚠️ Strategic Implications
China produces over 90% of the world’s rare-earth magnets, making its trade policies a critical factor in global industrial stability. The June surge offers short-term relief but underscores long-term concerns about supply chain dependence and the need for diversification.
