China’s Rare Earth Magnet Exports Rebound Sharply in July

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In a significant development for global supply chains, China’s rare earth magnet exports surged nearly 75 percent in July—reaching 5,577 metric tons, the highest monthly volume since January. This sharp rebound marks a decisive recovery from the export drop earlier in the year. Notably, this figure also exceeded July 2024 levels by approximately 5.7 percent. The resurgence followed Beijing’s easing of export restrictions that had hampered deliveries in April and May, disrupting operations across industries reliant on these magnets, such as electric vehicles and renewable energy.

Germany remained the largest importer in July, receiving 1,116 tons—a 46 percent increase over June. The United States also recorded a strong rebound with 619 tons, representing a 75.5 percent month‑on‑month rise and nearly 5 percent year‑on‑year growth. Meanwhile, year‑to‑date exports, totaling nearly 27,900 tons, still reflect a decline of roughly 15 percent compared to the same period last year—though this gap has narrowed from an 18.9 percent drop in the first half.

What This Means for Global Technology and Trade

The July export surge signals a return toward pre‑restriction trade levels, easing pressure on supply‑constrained industries worldwide. Automakers and tech manufacturers had faced production delays amid the earlier bottlenecks; this reversal brings relief and renewed confidence in raw‑material availability.

However, China’s dominant role remains a double‑edged sword. With over 90 percent of the world’s rare earth magnet refining capacity concentrated in the country—particularly for key materials like NdFeB and SmCo—continued reliance on Chinese supply raises strategic and geopolitical concerns.

The rebound reflects a fragile détente in trade relations, notably between China, the U.S., and Europe, which helped ease licensing restrictions. Whether this momentum will hold remains uncertain, especially as global demand for clean technologies continues to rise. Manufacturers and policymakers alike are watching closely for signs of sustained supply normalisation—or fresh policy shifts.