China's rare earth magnet exports rebounded and reached a six-month high in July 2025. This indicates that trade flows of the crucial minerals essential for electric vehicles have returned to levels before Beijing imposed export restrictions. Exports from the world's largest supplier of rare earth magnets increased nearly 75% from June, reaching a single-month high of 5,577 metric tons last month, according to official data from the General Administration of Customs. July's export volume was in line with analysts' expectations, which were 5.7% higher than the 5,278 tons shipped in the same month last year.
The continued recovery in exports comes after Beijing agreed to a series of deals with the United States and Europe to increase shipments and ease export controls imposed in April in retaliation for US tariffs. Rare earth product shipments fell sharply in April and May due to the lengthy approval process for export licenses. This disrupted the global supply chain and forced some automakers outside China to halt production due to a shortage of rare earth raw materials. Germany remains the top export destination, with a volume of 1,116 tons, a 46% increase from the previous month. Outbound shipments to the United States also jumped 75.5% from the previous month to 619 tons, a 4.8% increase compared to the same month in 2024. In the first seven months of 2025, China's rare earth magnet exports totaled 27,897 tons, with the year-on-year decline narrowing to 15% from 18.9% in the first half.
