China’s rare earth magnet exports slip; U.S. hits 9-month high

China exported 5,473 metric tons of rare earth magnets in October, down 5.2% from September’s 5,774 tons, according to the General Administration of Customs. 

Shipments to the U.S. rose 56.1% to 656 tons, the highest monthly level since January. The October total was 15.8% higher than the 4,725 tons recorded in October 2024. For the first ten months, exports reached 45,290 tons, down 5.2% from the same period a year earlier.

By destination, Germany, the U.S., South Korea, Vietnam, and India were the largest markets by volume in October. Exports reached a seven-month high in August before easing in September and October. China is the largest producer and exporter of these magnets, which are used in electric vehicles, wind turbines, electronics, and defense systems.

Beijing announced earlier this month it would suspend rare earth export control measures for one year, following a late-October summit in Busan, South Korea, that aimed to ease trade frictions with Washington. A new licensing regime is being designed that could speed shipments, though controls are not expected to be fully removed, Reuters reports, citing industry sources. 

As we covered previously, the U.S. has also agreed to pause new port fees on China-linked vessels for one year starting Nov. 10, as part of a limited trade truce reached by Presidents Trump and Xi. The move, which prompted Beijing to suspend its own retaliatory charges, has eased pressure on shipping costs and signaled a cautious de-escalation in the trade dispute – a parallel step to China’s temporary easing of rare earth export controls that together give global supply chains some breathing room, even if underlying tensions remain.