[News] China’s Rare Earth Exports Surge 23% in May, Reaching 1-Year High Despite Controls

Following the U.S.-China trade war, China has been tightening its grip on rare earth exports. According to a report from ijiwei, citing Reuters, export controls on certain critical minerals have stalled some overseas sales and caused supply shortages across global manufacturing. Yet in May 2025, China’s rare earth exports rose 23% month-on-month to 5,864.6 tons—the highest monthly volume in a year.

Over the first five months of 2025, total exports of 17 types of rare earth slightly increased to 24,827.0 tons, up from 24,266.5 tons during the same period in 2024, as the report indicates.

Reuters points out that the restrictions do not apply to all types of rare earth products exported by China. As the current data does not distinguish among product categories, a clearer picture of the curbs’ impact will only emerge with the more detailed release scheduled for June 20, Reuters indicates.

The report also highlights that China’s export restrictions in April on various rare earths and rare earth magnets triggered production halts in parts of the global automotive industry. Magnet exports dropped by half that month, forcing several European auto parts factories to shut down. In addition, some European semiconductor companies warned they are just weeks away from suspending operations, as noted by the report.

China’s Latest Rare Earth Moves

China appears to be offering some reprieve from its rare earth export restrictions. According to CNBC, the Ministry of Commerce of the People’s Republic of China stated on June 7 that it is willing to create a “green channel” to fast-track eligible export license applications for European Union firms.

In addition, Reuters, citing sources, notes that China has issued temporary export licenses to rare earth suppliers serving the top three U.S. automakers—GM, Ford, and Stellantis. However, Reuters mentions that it remains unclear which specific items or quantities are covered under the approvals, or whether this indicates a broader move by China to ease its rare earth licensing process.

Meanwhile, China has also implemented a tracking system for its rare earth magnet industry, requiring producers to submit additional information online—such as trading volumes and client names, according to sources cited by Reuters.

As TechNews notes, China holds about 40% of global rare earth reserves and accounts for nearly 70% of global production—particularly in heavy rare earths. These elements are vital to modern technologies and strategic sectors such as defense, aerospace, electronics, and electric vehicles (EVs).

Read more

• [News] China Controls 70% of Global Rare Earth Output—Meet the Top 10 Suppliers Behind It
• [News] China Greenlights First Rare Earth Exports to South Korea Under New Controls, Yet 45-Day Delays Remain

(Photo credit:GRINM Advanced Materials)