China’s exports of rare earth magnets to the United States skyrocketed in June following agreements that resolved long-standing trade disputes between the two nations.
Outbound shipments hit 353 metric tons, more than seven times the volume exported in May, according to the General Administration of Customs.
The dramatic 660% month-on-month jump signals renewed momentum in the supply of critical materials used in wind turbines, electric vehicles, and electronics.
Resumption After Disruption
The export surge follows a trade pact reached in June that eased restrictions around the shipment of rare earth materials.
As part of the broader agreement, U.S. chipmaker Nvidia also announced plans to resume sales of its H20 AI chips to China.
China, which supplies over 90% of the world’s rare earth magnets, had previously tightened controls by adding new rare earth products to its export restriction list in April.
This move was in response to U.S. tariffs and led to severe disruptions in April and May.
Global Impact of Export Bottlenecks
Export licensing delays during the spring caused supply chain problems worldwide.
Some automakers, particularly those outside China, were forced to halt sections of their production due to the resulting shortage.
In total, China exported 3,188 tons of rare earth permanent magnets globally in June—a 157.5% increase compared to May.
Still, the volume was 38.1% lower than in June 2024, showing that the sector has yet to fully recover year-on-year.
Prospects for July and Beyond
Analysts expect shipments to rise further in July as more exporters secure the required licenses granted in June.
However, cumulative exports for the first half of 2025 are still down 18.9% year-over-year at 22,319 tons.
The data indicates that while supply chains are stabilizing, full recovery may take several more months.
The sharp turnaround in exports to the U.S. reflects the delicate balance of trade policy, strategic minerals, and geopolitical maneuvering in the global clean Tech race.