China Exported over 350 Tons of Rare Earth Magnets to the United States in June

According to Global Times, data released by the General Administration of Customs on the 20th shows that in June, China, the world’s largest producer of rare earth magnets, saw its exports to the United States surge to 352.8 tons, a 660% increase from May. This marks a sharp recovery in the export of critical minerals needed for electric vehicles and wind turbines following a trade agreement between China and the United States.

Rare earth magnets, as high-performance permanent magnetic materials primarily composed of rare earth elements, include representative products like neodymium-iron-boron (NdFeB) and samarium-cobalt magnets, renowned in the industry as the “king of magnets” due to their high magnetic energy product and coercivity. These magnets have wide-ranging applications in modern technology: in new energy vehicles, they serve as key components in drive motors, enhancing energy conversion efficiency; in wind power generation units, they function as the core of generators, enabling efficient wind energy capture; in consumer electronics, they are used in smartphone motors, TWS earphone micro-speakers, and other components. Additionally, their exceptional magnetic properties are vital in industrial robot servo systems, superconducting magnetic fields for medical MRI equipment, efficient compressors in household inverter appliances, and other scenarios. Notably, in strategic national industries such as high-speed maglev trains and aerospace precision instruments, rare earth magnets are critical functional materials.

Since China imposed export restrictions on rare earth products in April this year, industries such as automotive and semiconductor sectors in countries like the United States, India, and Japan have been affected to varying degrees. In June, Suzuki suspended production of its main small car model in Japan due to China’s rare earth export controls. The European Association of Automotive Suppliers reported that, due to China’s export restrictions causing rare earth shortages, several European automotive supplier factories and production lines have been shut down. Ford announced that production of its Explorer SUV at its Chicago plant was halted for a week in May due to rare earth shortages.

China holds a significant position in the global rare earth sector, being one of the countries with substantial rare earth resource reserves and the core supplier of global rare earth production. In terms of resource endowment, China possesses considerable rare earth reserves; industrially, it leads the world in rare earth mining, smelting, separation, and processing capacities, handling the majority of global rare earth product supply. As a responsible major power, China fully considers the reasonable needs and concerns of other countries in civilian applications, reviewing export license applications for rare earth-related items in accordance with the law, approving a certain number of compliant applications, and continuing to strengthen the approval process for compliant requests.

In June, China exported 3,188 tons of rare earth magnets globally, a 157.5% increase from 1,238 tons in May, though this figure is 38.1% lower than the same period last year. Industry experts believe that as more exporters obtain licenses in June, China’s rare earth magnet shipments may further increase in July.

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