China’s June shipments of rare-earth magnets to the United States surged to more than seven times May’s level, signaling a robust rebound in the supply of critical minerals essential for electric vehicles and wind turbines following the new U.S.–China trade deal.

  Rare-earth exports to the U.S. have skyrocketed by 660%  

       Recent data from China’s General Administration of Customs show that rare-earth magnet exports to the United States leapt to 353 tonnes in June, up 660 % from May.

       Overall, China shipped 3 188 tonnes of rare-earth permanent magnets worldwide in June, a 157.5 % jump from May’s 1 238 tonnes, although the June figure is still 38.1 % below the same month in 2024.

       Analysts expect July shipments to climb further as additional exporters obtain the necessary licences.

       China controls more than 90 % of global rare-earth magnet supply. In early April it added several rare-earth products to its export-control list in response to U.S. tariffs. Exports plunged accordingly—May volumes collapsed 80 %—pinching U.S. automotive, defence, and semiconductor supply chains. Even Japan’s  Suzuki was forced to idle some production lines due to the shortage.

       By June the wind had shifted. Beijing and Washington struck a deal on rare-earth minerals and magnets; as part of the accord, chip-maker Nvidia plans to resume sales of its H20 AI chips to China. With certain tariffs rolled back and Nvidia back in the Chinese market, export licences for Chinese rare earths were eased. Volkswagen, Renault, GM and other automakers received temporary passes—hence the eye-catching 353-tonne figure for June.

  China produces roughly 70 percent of the world’s rare-earth elements  

       China holds the world’s largest endowment of rare-earth resources. According to the U.S. Geological Survey (USGS), China’s 2024 reserves stand at about 44 million metric tons—nearly half of all proven global reserves.

       China is also the planet’s leading producer, a position it has maintained for years. In 2024 global rare-earth output totaled 390,000 metric tons, of which China supplied 270,000 metric tons—close to 70 % of world production. Chinese rare-earth exports that year reached 64 countries and regions, with Japan and the United States as the top buyers, purchasing 28 % and 25 % respectively of China’s total rare-earth exports.

  China’s share in the U.S. rare-earth supply chain is growing ever larger  

       The United States is heavily import-dependent for its rare-earth needs. According to the U.S. Geological Survey, 80 % of U.S. rare-earth consumption in 2024 was met by imports, chiefly from China, Malaysia, Estonia, and Japan. China alone supplied 77 % of those imports.

       Despite years of calls to diversify the rare-earth supply chain, the share sourced from China has actually risen—from 67 % in 2021 to 77 % in 2024—underscoring how difficult it is for the United States to reduce its reliance in the near term. Beijing’s recent restrictions on seven medium and heavy rare-earth elements are expected to affect U.S. defense contractors, automakers, high-tech manufacturers, and the medical sector to varying degrees.

       A spokesperson for China’s Ministry of Commerce noted that rare-earth-related items have both civilian and military applications, and that export controls on such items are in line with international practice. “China’s export controls are implemented in accordance with the law to safeguard national security and interests and to fulfill international non-proliferation obligations,” the spokesperson said. “This reflects China’s consistent commitment to world peace and regional stability.”

     “We also recognize that civilian demand for medium and heavy rare earths is growing worldwide, driven by sectors such as robotics and new-energy vehicles. As a responsible major country, China gives full consideration to the legitimate civilian needs and concerns of all nations, reviews export-license applications in accordance with the law, and has already approved a number of compliant requests. We will continue to strengthen the processing of compliant applications and stand ready to enhance dialogue with relevant countries on export-control matters to facilitate compliant trade.”