China has flipped the switch on rare-earth magnet exports. After months of tension and low supply, shipments of rare-earth magnets shot up 158% in June.
Beijing’s export data, released on Sunday, showed total shipments hit 3,188 tons in June. That’s more than double the 1,238 tons shipped in May, when China had tight export controls in place.
A Truce with Impact
The jump in magnet exports came right after a key trade deal was signed in Geneva in June. The US and China agreed to lower tensions and ensure better supply chains.
US President Donald Trump said China had agreed to fully supply rare earths and magnets again.
The numbers prove it:
- In May, the US got only 46 tons of rare-earth magnets
- In June, that rose to 353 tons
Why It Matters
Rare-earth magnets are tiny but powerful tools. They are used in many important products like:
- Electric vehicles
- Fighter jets
- Smartphones
- Wind turbines
Without them, many factories could shut down. That’s why this jump in supply is a big deal.
What Caused the Shortage?
In April, China put limits on seven rare earth elements. These limits also covered the magnets made from them. The move shook global markets.
Industries in the US, Europe, and India began to worry. Prices rose, and some companies slowed production. The US even called it an “economic weapon.”
That pressure led to urgent talks. And finally, the Geneva agreement came.
Still Not Enough
Even with the increase in June, shipments are still lower than before China’s export controls began in April.
US Treasury Secretary Scott Bessent said, “It’s better, but not fast enough.”
China controls over 80% of the world’s rare earth processing. When it cuts supply, the world feels it.
