China’s exports of rare earth magnets to the United States surged significantly in June 2025, increasing by 660% from May to 353 metric tons, following a Sino-US trade agreement that eased restrictions on critical minerals key to electric vehicles and wind turbines.
This rebound followed an earlier period of severe export curbs imposed by China in April, which had substantially disrupted the global supply chain, forcing some automakers outside China to halt or reduce production due to shortages of rare earth materials. These export restrictions were initially introduced by China in retaliation to U.S. tariffs, impacting shipments of several rare earth items including magnets.
Analysts expect further recovery in July as exporters continue to secure necessary export licenses.
How Does the Rare Earth Magnet Export Impact Buyers & Suppliers?
For global buyers and suppliers, this development underscores the ongoing volatility of the rare earth supply chain, heavily dependent on China, which remains the dominant supplier with over 90% of the world’s rare earth permanent magnets. Buyers should anticipate potential fluctuations and prepare for licensing delays or geopolitical shifts that could impact supplies. Diversification of sources and strategic stockpiling might mitigate risks.
Suppliers and manufacturers outside China face pressure to scale local production capabilities, but immediate relief depends largely on China’s trade policies and licensing processes. The recent US-China agreements signal a possible easing of tensions and suggest a cautious but meaningful stabilization in rare earth magnet supplies essential for high-tech and green industries worldwide.
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