ISTANBUL
The exports of rare earth magnets from China to the US plummeted in September, capping months of recovery, as Washington works to establish alternative supply channels and the top two economies clash in a renewed trade conflict.
The exports were down 28.7% monthly in September to 420.5 tons, and dropped around 30% on a yearly basis, according to data from China’s General Administration of Customs that were released Monday.
After a brief recovery that began in June, when Beijing pledged to speed up rare earth export permits during trade discussions with US officials in London, rare earth magnet exports saw a second straight monthly decrease in September.
China continues to dominate the global market in rare earths, producing more than 90% of the global supply, and other rare earths, which the US has been trying to reduce its dependency on the metals.
Technologies like electronics, defense systems, renewable energy, and electric cars depend on magnets. Beijing’s previous curbs prompted shortages and supply disruptions across industries earlier this year.
Meanwhile, according to Chinese customs data, total shipments of rare earth magnets decreased 6.1% in September compared to August.
Washington has been working to lower its dependency on the rare earth exports from China by investing in domestic manufacturers and acquiring stakes in companies.
In July, the Defense Department acquired a 15% ownership share in MP Materials, a rare earth mining company, after the company announced with Apple that they would invest $500 million in a facility for recycling rare earth magnets that will bolster the tech company’s US base.
And in October, the US acquired a 5% equity stake in Canadian mining firm Lithium Americas -- a key producer of lithium used in electric vehicle (EV) production and batteries.
Separately, Australia and the US agreed Monday on a potentially $8.5 billion minerals pact. Funding for several projects to increase rare earth and vital mineral supply for the defense industry and energy security is part of the deal.
