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Rare earth element exports from China to the U.S. rose by 660% monthly, according to information released by Beijing’s General Administration of Customs, MSN reported.
In June, total shipments to the U.S. rose to 353 metric tons, following a negotiated trade agreement between Beijing and Washington in May. Both countries agreed to reduce tariffs on each other for an additional 90 days.
Part of that agreement includes China delivering more rare earth elements used in high-tech products, including smartphones, jet engines, EVs, and wind turbines, which it had placed restrictions on for the U.S. in April. The move was seen as retaliation against U.S. President Donald Trump’s steep tariffs on China, according to CNBC.
Beijing has a stranglehold on the production of rare-earth magnets, with around 90% of the market, as well as a similar hold on the refining of rare-earth elements, which are used to make magnets.
China exported 3,188 metric tons of rare earth permanent magnets globally last month, up nearly 160% from May, but 38% lower compared with the same period last year.
Nvidia announced on July 14 that it plans to resume shipments of its H20 AI chips to China soon. In May, there were also rollbacks of controls on American AI chip software companies’ business in China.
Chinese rare-earth magnet producers announced the approval of export licenses last month, which will help many companies suffering from magnet shortages because of the lengthy time required to secure export licenses. Among those affected are Elon Musk’s Tesla Optimus humanoid robots.
According to CNBC, one way that the U.S. has been trying to compensate for the lack of rare-earth magnets is through increased recycling. On July 15, Apple and miner MP Materials announced a $500 million deal to develop a recycling facility that will reinforce the iPhone maker’s U.S. magnet supply chain.
