China’s rare earth exports slump in May as magnet sales curbed

[BEIJING] China’s exports of rare earth products – including powerful magnets now at the heart of tensions with the US – slumped to a fresh five-year low in May as Beijing’s export curbs choked flows.

The data for last month shows the extent to which export controls in place since early April had curbed shipments, before a US-China meeting to resolve the restrictions. A shortage of vital magnets has threatened industries including car making from the US to Europe and India. 

May’s export volume of rare earth products fell by 61 per cent from a year earlier to 2,117 tons, the lowest level since February 2020, according to calculations by Bloomberg News based on Chinese customs data. The products category – distinct from minerals and metals – is typically dominated by magnets. Exports had already fallen sharply in April.

China produces about 90 per cent of the world’s so-called permanent rare earth magnets, and has used its grip on supplies to fight a burgeoning trade war with the US. Export controls launched on April 4 covered not just seven individual rare earths, but also magnets that contain even tiny amounts of them.

Governments and companies in the US are watching how flows change in June. Following a meeting between American and Chinese negotiators in London earlier this month, US President Donald Trump said “FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA.” 

Specific data on exports of magnets is due to be published by Chinese customs on Friday. In the first quarter of 2025, ahead of export curbs, magnets accounted for nearly 90 per cent of the rare earth products group. BLOOMBERG