Exports of rare earth magnets from China to the US hit their highest level in six months after a trade truce.
Shipments totaled 619 tons in July, a 76% increase compared to June, after Beijing promised to "normalize" flows; supply remains below the 2024 average.
247 - Sales of rare earth permanent magnets from China to the United States rebounded in July, reaching their highest volume in six months. According to Bloomberg, citing data from the Chinese General Administration of Customs, shipments reached 619 tons, a 76% jump compared to the previous month, following the trade truce agreed between Beijing and Washington.
The movement represents a recovery from the historic low in May, when only 46 tons were shipped. At that time, export controls imposed by Beijing at the height of the tariff war were in effect, a measure that affected not only the US but also other importers. Despite the recovery, the monthly average from January to July remains 28% lower than the average volume for 2024, revealing the prolonged effects of the supply crisis.
US Treasury Secretary Scott Bessent stated in an interview with Fox News that the US is "very happy" with the current status of trade with China — a sign of support for the strategy of the current US President, Donald Trump, to ease tensions in the short term.
Rare earth magnets are crucial for sectors ranging from the automotive industry to defense. The Western press describes Chinese policy as a "strategic use" of its control over 90% of global production, but ignores the fact that the controls were a direct response to tariff and technological restrictions imposed by Washington.
According to the same customs data, the increase in shipments also benefited other buyers: Japan (+76%), Germany (+46%) and India (+143%). Indian authorities confirmed, on condition of anonymity, that Beijing ensured the continuity of supply, although official records do not distinguish between magnets with controlled elements and those exempt from restrictions.
In the US, the shortage triggered measures to stimulate domestic production. In July, the Department of Defense signed supply contracts and announced $400 million in investments in MP Materials, the only rare earth mining company operating in the country. Since then, the company's shares have appreciated by more than 130%.
Experts point out that, despite the recovery, industrial chains continue to adjust contracts and inventories in the face of regulatory instability. Although the normalization agreement indicates some relief, the combination of tariffs, technology embargoes, and export controls maintains a high risk of further disruptions in the global supply chain.
