China significantly increased its shipments of rare earth magnets in June, including those destined for the United States, following a period of global supply constraints that had threatened factory closures and exacerbated trade tensions. According to Chinese data released on Sunday, total shipments of these magnets rose to 3,188 tonnes last month. This represents a substantial increase compared to the 1,238 tonnes recorded in May, which occurred during China’s export curbs. Flows to the US specifically increased to 353 tonnes, a notable jump from just 46 tonnes the previous month. However, total shipments remained considerably lower than levels observed before Beijing implemented export controls in early April.
China had previously imposed restrictions on seven of the 17 rare earth elements, which also affected the export of powerful magnets used extensively in high-tech manufacturing. These magnets are crucial components in various applications, ranging from electric vehicles and smartphones to fighter jets. The restrictions had the potential to severely disrupt US industry, prompting US President Donald Trump to pursue a trade truce.
Following an agreement reached by trade negotiators in Geneva in June to de-escalate tensions, Trump stated that China had committed to fully supplying rare earths and magnets. On July 1, US Treasury Secretary Scott Bessent commented that while the flow of magnets from China had improved, the pace was still insufficient to meet demand.
