China’s Rare-Earth Magnet Exports to US Soar 660% Following Trade Agreement

A sharp shift in trade dynamics between China and the United States has led to a remarkable surge in the export of rare earth magnets. In June 2025, China’s exports of these critical components to the United States rose by a staggering 660% compared to May, a sign that recent trade agreements are beginning to ease tensions and stabilize crucial supply chains. 

The sudden jump also comes amid renewed cooperation in the tech and minerals sectors, including chipmaker Nvidia’s plans to resume sales of its H20 AI chips to China.

What Are Rare Earth Magnets, and Why Do They Matter?

Rare earth magnets are essential in many modern technologies. From electric vehicles and wind turbines to smartphones and military hardware, these magnets are key to producing efficient, high-performance devices. 

China is the world’s leading producer and exporter of rare earth magnets, making it a central player in the global supply chain.

When access to these materials is delayed or restricted, it can disrupt production worldwide. In recent months, automakers outside China faced production slowdowns because of rare earth shortages, mainly due to stricter export licensing in China. 

These delays created significant uncertainty for manufacturers relying on stable and timely deliveries.

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The 660% Surge: A Sign of Recovery

According to data from China’s General Administration of Customs, the country exported 353 metric tons of rare earth magnets to the United States in June 2025, up from just 46.5 metric tons in May. 

The dramatic increase marks a turning point following new trade pacts aimed at smoothing the flow of rare earth materials between the two economic powers.

The trade agreement, finalized in June, focused on addressing the long-standing concerns around the licensing and shipment of rare earth minerals and permanent magnets. The results were immediate. 

As licensing processes became more efficient, exporters were able to restart operations and meet previously delayed orders.

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Chipmaker Nvidia and the Tech Sector’s Role

An interesting dimension to this agreement involves chipmaker Nvidia. As part of the broader arrangement, Nvidia is expected to resume the sale of its H20 AI chips to China. 

These chips, which are vital for machine learning and artificial intelligence development, were previously subject to regulatory restrictions from the United States.

This development reflects a mutual recognition of the need for cooperation in advanced technology. It also points to how rare earth elements and semiconductors are now closely linked in international trade policy.

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Global Export Trends and Outlook

While exports to the United States showed the most significant growth, China also increased its global shipments. In June 2025, China exported 3,188 metric tons of rare earth magnets worldwide, a 157.5% increase from May. 

However, this figure remains 38.1% lower than June 2024, indicating that the industry is still in the process of full recovery.

In the first half of 2025, total exports of rare earth magnets from China dropped 18.9% year-on-year, reaching 22,319 tons. Analysts expect July to show continued growth as more exporters received licenses in June and are now shipping orders to clients around the world.

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FAQ

Why did China’s rare earth magnet exports to the US increase in June 2025?

The increase followed a trade agreement between China and the United States, which addressed delays in export licensing and allowed shipments to resume.

What role does Nvidia play in this trade development?

Chipmaker Nvidia agreed to resume sales of its H20 AI chips to China as part of the broader trade pact, indicating improved tech cooperation.

What are rare earth magnets used for?

They are used in electric vehicles, wind turbines, electronics, military technology, and other advanced machinery requiring strong, compact magnets.

Is China still the leading supplier of rare earth materials?

Yes, China remains the largest producer and exporter of rare earth magnets and minerals, playing a crucial role in the global supply chain.

Will the export volume continue to rise in the coming months?

Analysts expect further increases in July and beyond, as more exporters received their licenses in June and are beginning to ship their products.