Shipments had hit rock bottom in May after China put several rare earth materials, used in electric vehicles and missile-guidance systems, on an export restrictions list.
China’s rare earth exports to the U.S. jumped 76% in July compared to the previous month to hit a six-month high as Beijing loosened restrictions on the shipments of the critical minerals as part of a trade truce.
According to a Bloomberg News report, China shipped 619 tons of rare earth minerals to the U.S. in July, up from the 353 tons in June.
Shipments had hit rock bottom in May after China put several rare earth materials, used in electric vehicles and missile-guidance systems, on an export restrictions list and asked Chinese businesses to get a government permit before shipping their products abroad after U.S. President Donald Trump raised tariffs on Chinese goods to 145%. China dominates the rare earth magnet supply by processing around 90% of all materials.
Western companies, from automakers to consumer electronics firms, soon began to feel the pressure and started curtailing capacity. Following trade talks in Geneva and London, the two sides agreed to cut tariffs mutually, and China agreed to resume rare earth exports for Washington’s concessions on artificial intelligence chips.
Retail sentiment on Stocktwits about U.S.-based rare earth supplier MP Materials was in the ‘bearish’ territory at the time of writing, while traders were also ‘bearish’ about The Metals Company.
MP’s stock has more than tripled in the past three months following the Pentagon’s agreement to take a 15% stake in the company, as well as a $500 million supply agreement with Apple.
Alongside the U.S., other countries also saw a boost in supplies. As per the Bloomberg News report, Exports to Japan rose 76%, while shipments to Germany gained 46%. Beijing more than doubled deliveries to India in July, amid tensions between Washington and New Delhi over tariffs.
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