In June, China sharply increased its exports of rare earth magnets, sending 3,188 tons abroad—a 158% rise from the previous month. This jump followed a trade agreement with the United States that ended strict export restrictions, which had caused global supply issues and raised concerns about factory closures.
Earlier in April, China had imposed controls on seven of the 17 rare earth elements, key materials used in electric vehicles, smartphones, wind turbines, and military equipment. These restrictions had a major impact, especially on the U.S., where imports dropped to just 46 tons in May. After the June agreement, however, shipments to the U.S. surged to 353 tons.
The breakthrough came during a trade meeting in Geneva, where President Trump negotiated with Chinese officials to restore rare earth supply lines. China agreed to ease its export rules, helping to resume the flow of critical materials.
Still, despite the monthly increase, overall exports remain well below pre-restriction levels. U.S. Treasury Secretary Scott Bessent noted in July that although trade had resumed, the pace of recovery was too slow to fully meet industrial needs.
Adding to the picture, China has quietly issued new rare earth quotas for 2025—allowing 270,000 tons for mining and 254,000 tons for smelting and separation. However, these quotas were not publicly announced and were limited to just two state-owned companies.
This move signals China’s intent to tighten its grip on the global rare earth supply chain. By limiting access, Beijing is reinforcing its control over the production and export of 17 strategic minerals, which are essential for green energy and defense industries worldwide.
While the trade truce offers temporary relief, China’s latest actions suggest that it plans to keep rare earths under close watch in the years ahead.
