In June, China’s exports of rare earth magnets to the United States surged dramatically, reaching more than seven times the volume shipped in May. This sharp rebound followed a trade agreement between the two countries aimed at easing restrictions on critical minerals essential for electric vehicles and wind turbines.

According to customs data released recently, shipments from China, the world’s largest producer of rare earth magnets, jumped to 353 metric tons in June—a 660% increase compared to the previous month.

The rise came after agreements in June addressed concerns about the export of rare earth minerals and magnets to the U.S. As part of the deal, semiconductor company Nvidia plans to restart sales of its H20 AI chips to China.

Earlier this year, China, which supplies over 90% of the world’s rare earth magnets, added several rare earth products to its export restriction list in response to U.S. tariffs. This led to a sharp decline in shipments during April and May, as delays in obtaining export licenses disrupted the global supply chain. Some automakers outside China even had to partially halt production due to shortages of these vital materials.

Globally, China exported 3,188 tons of rare earth permanent magnets in June, marking a 157.5% increase from 1,238 tons in May, though this figure remained 38.1% below the same month in 2024. Analysts expect shipments to continue recovering in July as more exporters secure licenses.

For the first half of 2025, exports of rare earth magnets declined 18.9% year-on-year, totaling 22,319 tons.