As exports increase to match demand levels, confidence in global supply chains strengthens, offering relief to industries previously disrupted by curbs.
China’s exports of rare earth magnets surged to a six-month high in July, signalling a recovery in trade flows of the critical minerals essential for electric vehicles. Shipments climbed nearly 75% from June to 5577 metric tonnes in July, the strongest monthly performance since January, according to General Administration of Customs data released recently.
Volume of critical mineral exports was 5.7% higher in July 2025 than a year earlier for the same month, which is in line with analysts’ expectations. The rebound is the result of Beijing’s agreements with the US and Europe to ease export controls, imposed in April. These export restrictions were imposed in retaliation for US tariffs.
The earlier rigid export guideline limits, coupled with lengthy approval processes for licences, had disrupted rare earth global supply chains and forced some carmakers outside China to suspend production. The shipments declined sharply in April and May, only to get up a month later, post signing deals with major economies..
Official statistics confirm that Germany remained the top export destination in July with 1116 tonnes, a 46% increase from June 2025. Exports to the US rose 75.5% month-on-month to 619 tonnes, up 4.8% compared with July 2024. For the first seven months of 2025, China exported 27897 tonnes of rare earth magnets. The annual decline narrowed to 15% from 18.9%, which was reported in the first half of the year. Noticeably, China is the world’s largest rare earth magnet supplier as per the latest survey outcome.
