US-bound rare earth magnets on the rise

RTHK

2 days ago

US-bound rare earth magnets on the rise
Rare earth exports from China to the United States have rebounded after US tariffs fuelled trade tensions earlier. File photo: AFP
China's exports of rare earth magnets to the United States in June soared to more than seven times their May level, marking a sharp recovery in the flow of critical minerals used in electric vehicles and wind turbines after a Sino-US trade deal.
Outbound shipments to the United States from the world's largest producer of rare earth magnets surged to 353 metric tons in June, up 660 percent from May, data from the General Administration of Customs showed on Sunday.
That came after pacts reached in June to resolve issues around shipments of rare earth minerals and magnets to the United States.
Chipmaker Nvidia plans to resume sales of its H20 AI chips to China as part of the agreement.
China, which provides more than 90 percent of the global supply of rare earth magnets, decided in early April to add several rare earth items to its export restriction list in retaliation for US tariffs.
The subsequent sharp fall in shipments in April and May, due to the lengthy time required to secure export licences, had upset the global supply chain, forcing some automakers outside China to halt partial production due to a rare earths shortage.
In total, China exported 3,188 tons of rare earth permanent magnets globally last month, up 157.5 percent from 1,238 tons in May, although the June volume was still 38.1 percent lower than the corresponding month in 2024.
Shipments of magnets are likely to recover further in July as more exporters obtained licences in June, analysts said.
During the first half of 2025, exports of rare earth magnets fell 18.9 percent on the year to 22,319 tons. (Reuters)