ISTANBUL
China’s rare earth magnet exports to the US surged in June, increasing over sevenfold compared to May, as firms rushed to obtain these vital minerals following a trade agreement between Beijing and Washington, CNBC reported Monday.
China shipped 353 metric tons of rare earth permanent magnets to the US in June, up 660% on a monthly basis, according to data from China’s General Administration of Customs.
Despite the surge, deliveries were nearly half that from a year ago in June, the data showed.
After Germany, the US was the second-largest recipient of rare earth magnets in June.
China exported 3,188 metric tons of rare earth magnets worldwide in June -- an increase of approximately 158% from May -- but about 38% lower than June 2024.
The rise in exports followed the preliminary trade agreement reached by the US and China last month, which eased restrictions on Chinese rare-earth exports and scaled back certain US tech curbs on exports to China.
Last week, chip giant Nvidia said it will resume sales of its H20 artificial intelligence (AI) chips to China after the US government pledged to remove licensing restrictions.
Beijing imposed limits in April on several vital magnets used in high-tech devices, including wind turbines, electric cars, and MRI scanners, forcing companies to obtain export licenses in retaliation for the US' tariffs targeting Beijing.
China continues to dominate the global market, producing more than 90% of the world’s rare earth magnets and other rare earths, which the US has been trying to reduce its dependency on.
Last week, Apple and miner firm MP Materials announced that they will invest $500 million in a facility for recycling rare earth magnets that will bolster the tech company’s US base.