China’s rare earth exports jump

China’s exports of rare earth products surged in July to levels not seen since January, underscoring Beijing’s easing of export restrictions and tensions with the U.S.

Volumes rose 69% to 6,422 tonnes, according to customs data compiled by Bloomberg. The rebound comes after China introduced sweeping export controls during April-May in response to U.S. tariff measures. The trade spat prompted concerns of a global supply squeeze on rare earth products, particularly permanent magnets, which are crucial for advanced technologies such as electric vehicles, wind turbines and defence systems.

Industries that rely heavily on these magnets, from automakers in Europe and India to electronics manufacturers, were severely impacted by the supply disruptions, as China controls about 90% of the global production.

Trade truce

However, shipments have begun to recover following a recent trade truce between Washington and Beijing. U.S. Trade Representative Jamieson Greer said earlier this month that China was nearly halfway in restoring magnet supply to pre‑control levels.

According to Bloomberg, detailed data on specific product categories and export destinations are expected later this week.

For years, the U.S. has relied on China for its supply of rare earths – which the Asian country used to its advantage in the trade war. Since the supply disruptions earlier this year, Washington has unveiled plans to boost domestic output of rare earths and magnets, including a sizeable investment in MP Materials (NYSE: MP), the nation’s only rare earth miner.