[News] Rare Earth Rush: China’s June Exports Reportedly Hit Highest Level Since 2009

While the rare earth market has been volatile since April, when China— the top supplier— imposed export controls amid escalating trade tensions with the U.S., this has yet to stop global buyers to secure the crucial materials used in powerful magnets. According to Bloomberg, China’s rare earth exports surged in June to their highest level since 2009.

Citing China’s official data, the report notes that rare earth exports from China rose to 7,742 tons in June—up 60% from a year earlier—driven partly by growing demand from the few magnet makers outside China, as the global auto industry struggles with supply shortages.

Notably, as the report points out, the latest customs data excludes permanent magnets. More detailed trade figures—covering total rare earth exports and a breakdown that includes magnets—are expected Friday and Sunday, the report adds.

Currently, China’s export controls apply to seven of the 17 rare earth elements— including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium— in raw form and extend to magnets containing even trace amounts of these materials, as highlighted by Blomberg. While China produces about 90% of the world’s rare-earth permanent magnets, most of the rest come from Japan and Germany, the report suggests.

U.S. Backs MP to Boost Rare Earth Magnet Supply

On the other hand, amid the ongoing U.S.-China trade tensions, CNBC reports that China began issuing six-month temporary export licenses to major U.S. auto suppliers in mid-June. Meanwhile, Washington is also stepping up efforts to diversify its supply chain and reduce reliance on China.

According to Reuters, MP Materials has struck a multibillion-dollar deal with the U.S. Department of Defense last week to ramp up production of rare earth magnets—key components in weapons, electric vehicles, and electronics. As part of the agreement, the Pentagon will reportedly become MP’s largest shareholder, marking Washington’s most significant investment yet in critical minerals.

Notably, Reuters reveals that to spur production, the DoD will guarantee a floor price of $110 per kilogram for two major rare earth elements—double the current market price in China. Additionally, the company will also build a new magnet factory to boost output to 10,000 metric tons annually by 2028, the report adds.

Read more

• [News] China’s New Rare Earth Rules Reportedly Target Experts, Curb Overseas Travel to Prevent Leaks
• [News] China Controls 70% of Global Rare Earth Output—Meet the Top 10 Suppliers Behind It

(Photo credit: GRINM)