China's proposed export restrictions on rare earth minerals could put $6.5 trillion worth of global downstream production at risk if fully implemented. This is according to the International Energy Agency's latest global critical minerals outlook.

IEA warns: China's export controls put $6.5 trillion at risk | World Business Watch  

China’s exports of rare earth elements surged sharply in June, rebounding from multi-year lows after Beijing eased some of its stringent trade war restrictions. The increase suggests a partial recovery in the global supply of magnets and other high-tech materials, following months of disruption caused by Chinese export curbs. According to customs data released on July 18, China exported 7,742.2 tonnes of rare earths last month, marking a 60.3 per cent rise from June 2024 and a 30.8 per cent increase compared to May 2025. The value of those exports climbed to 170 million yuan ($23.66 million). Exports of all rare-earth-related products, including finished magnets, rose 80 per cent from May’s five-year low to 3,808 tonnes.The sharp rise in shipments comes after China’s Ministry of Commerce began clearing a backlog of export licenses, which had been held up following sweeping controls imposed in April. Those curbs, seen as one of Beijing’s most powerful tools in its trade war with the Trump administration, targeted seven of the 17 rare earth elements, many of which are vital for electric vehicles, smartphones, wind turbines, and military equipment.<h2>Magnet supplies begin recovery after severe squeeze</h2>Magnets, which form a significant portion of rare-earth product exports, were at the centre of recent US-China trade tensions. The earlier export restrictions had triggered panic across global supply chains and prompted President Donald Trump to agree to a limited trade truce in June, amid fears of industrial disruption.Analysts believe the June export rebound signals that China is cautiously resuming supply flows under pressure from global customers. Governments across Europe, India, and the United States had urged Beijing to resume exports to stabilise the rare-earth market.<h2>Security crackdown, geopolitical frictions persist</h2>Despite the export rebound, tensions remain. On July 18, China’s Ministry of State Security accused unnamed foreign intelligence agencies of smuggling rare earth materials through postal systems. The ministry vowed to intensify crackdowns on illegal trafficking, reinforcing the strategic and national security importance Beijing places on these resources.While volumes are still below pre-curb levels, the June data suggests global manufacturers may get some near-term relief, though uncertainty remains as trade, technology, and security concerns continue to shape rare earth policy. (With inputs from agencies)

The sharp rise in shipments comes after China’s Ministry of Commerce began clearing a backlog of export licenses, which had been held up following sweeping controls imposed in April.

China’s exports of rare earth elements surged sharply in June, rebounding from multi-year lows after Beijing eased some of its stringent trade war restrictions. The increase suggests a partial recovery in the global supply of magnets and other high-tech materials, following months of disruption caused by Chinese export curbs. According to customs data released on July 18, China exported 7,742.2 tonnes of rare earths last month, marking a 60.3 per cent rise from June 2024 and a 30.8 per cent increase compared to May 2025. The value of those exports climbed to 170 million yuan ($23.66 million). Exports of all rare-earth-related products, including finished magnets, rose 80 per cent from May’s five-year low to 3,808 tonnes. The sharp rise in shipments comes after China’s Ministry of Commerce began clearing a backlog of export licenses, which had been held up following sweeping controls imposed in April. Those curbs, seen as one of Beijing’s most powerful tools in its trade war with the Trump administration, targeted seven of the 17 rare earth elements, many of which are vital for electric vehicles, smartphones, wind turbines, and military equipment. Magnet supplies begin recovery after severe squeeze Magnets, which form a significant portion of rare-earth product exports, were at the centre of recent US-China trade tensions. The earlier export restrictions had triggered panic across global supply chains and prompted President Donald Trump to agree to a limited trade truce in June, amid fears of industrial disruption. Analysts believe the June export rebound signals that China is cautiously resuming supply flows under pressure from global customers. Governments across Europe, India, and the United States had urged Beijing to resume exports to stabilise the rare-earth market. Security crackdown, geopolitical frictions persist Despite the export rebound, tensions remain. On July 18, China’s Ministry of State Security accused unnamed foreign intelligence agencies of smuggling rare earth materials through postal systems. The ministry vowed to intensify crackdowns on illegal trafficking, reinforcing the strategic and national security importance Beijing places on these resources. While volumes are still below pre-curb levels, the June data suggests global manufacturers may get some near-term relief, though uncertainty remains as trade, technology, and security concerns continue to shape rare earth policy. (With inputs from agencies)

The sharp rise in shipments comes after China’s Ministry of Commerce began clearing a backlog of export licenses, which had been held up following sweeping controls imposed in April.

China’s rare earth exports soar after trade war restrictions eased

Asteroids are small rocky bodies that travel around the Sun. They are much smaller than planets. They are very important because they can give us clues about the early composition of the Solar System. Unlike planets and moons which have changed a lot due to volcanic activity, erosion or earthquakes many asteroids have stayed the same for billions of years. By examining them scientists can learn about the original materials that formed planets, including Earth and how our Solar System has changed over time.&nbsp;Some asteroids like Ceres, are so large that they are classified as dwarf planets. Asteroids are usually grouped into three main types based on what they are made of: C-type, S-type and M-type.&nbsp;C-type Asteroids (Carbon-rich)C-type asteroids are the most common asteriods and are dark in color and contain clay, silicate rocks and organic carbon while some also have water ice. These asteroids are mostly found in the outer part of the asteroid belt. A well-known C-type asteroid is Bennu, which was studied by NASA’s OSIRIS-REx mission.&nbsp;S-type Asteroids (Stony)S-type asteroids are the second most common type. They are made mostly of rock and metals like nickel and iron. These materials are similar to what is found in the crust and mantle of Earth and other rocky planets. Most S-types are found in the inner part of the asteroid belt. A famous example is Eros, one of the largest asteroid near earth.&nbsp;M-type Asteroids (Metal-rich)M-type asteroids are mostly made of iron and nickel. Some may be pieces of larger bodies that were broken apart in early space collisions. Others may have formed closer to the Sun where high heat caused metal to melt and settle in the center. These asteroids are believed to be the source of metallic meteorites. One important M-type asteroid is Psyche, which NASA is currently exploring with a space mission to learn more about its origin.&nbsp;&nbsp;

Asteroids are usually grouped into three main types based on what they are made of: C-type, S-type and M-type.

Asteroids are small rocky bodies that travel around the Sun. They are much smaller than planets. They are very important because they can give us clues about the early composition of the Solar System. Unlike planets and moons which have changed a lot due to volcanic activity, erosion or earthquakes many asteroids have stayed the same for billions of years. By examining them scientists can learn about the original materials that formed planets, including Earth and how our Solar System has changed over time. Some asteroids like Ceres, are so large that they are classified as dwarf planets. Asteroids are usually grouped into three main types based on what they are made of: C-type, S-type and M-type. C-type Asteroids (Carbon-rich) C-type asteroids are the most common asteriods and are dark in color and contain clay, silicate rocks and organic carbon while some also have water ice. These asteroids are mostly found in the outer part of the asteroid belt. A well-known C-type asteroid is Bennu, which was studied by NASA’s OSIRIS-REx mission. S-type Asteroids (Stony) S-type asteroids are the second most common type. They are made mostly of rock and metals like nickel and iron. These materials are similar to what is found in the crust and mantle of Earth and other rocky planets. Most S-types are found in the inner part of the asteroid belt. A famous example is Eros, one of the largest asteroid near earth. M-type Asteroids (Metal-rich) M-type asteroids are mostly made of iron and nickel. Some may be pieces of larger bodies that were broken apart in early space collisions. Others may have formed closer to the Sun where high heat caused metal to melt and settle in the center. These asteroids are believed to be the source of metallic meteorites. One important M-type asteroid is Psyche, which NASA is currently exploring with a space mission to learn more about its origin.

Asteroids are usually grouped into three main types based on what they are made of: C-type, S-type and M-type.

What are asteroids really made of: Rocks, metals or something more?

Global carmakers and tech giants are breathing a cautious sigh of relief as China’s rare earth magnets start flowing again, but supply chain uncertainty lingers despite a diplomatic breakthrough between Washington and Beijing aimed at easing critical mineral export restrictions. After weeks of industry alarm, the threat of mass shutdowns across automotive production lines is easing. European suppliers report receiving enough Chinese export licences to keep factories running in July, avoiding the “full panic” seen earlier this month.&nbsp;However, hundreds of licence applications remain stuck in China’s opaque approval system, with exporters prioritising deliveries to familiar partners and leaving many US-bound shipments delayed or blocked entirely.<h2>Licences speed up but hurdles remain</h2>China imposed strict export controls on seven rare earths and related magnets in April, retaliating against US tariffs announced by President Donald Trump. The move sent shockwaves through supply chains critical to automakers, aerospace manufacturers, semiconductor firms and military contractors.According to Reuters, export volumes of rare earth magnets from China have plunged by roughly 75 per cent since the restrictions took effect, forcing production halts at plants in Asia, Europe and the United States. But industry groups say the worst-case scenario has been avoided for now.&nbsp;Nils Poel, head of market affairs at European supplier association CLEPA, said the rate of licence issuance has accelerated to around 60 per cent from 25 per cent in recent weeks. “Overall the feeling is that we probably will still have production in July and that the impact will be manageable,” Poel told Reuters. “Maybe here and there a production line will be affected, but we have avoided that for the moment.”<h2>US and China agree to speed up shipments</h2>The pressure on global supply chains prompted urgent high-level diplomacy. On Thursday, a White House official said the US and China had reached an “understanding” to expedite rare earth shipments to American buyers. “The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official told Reuters, referring to trade talks held in May.&nbsp;That deal included China’s commitment to remove non-tariff countermeasures it had imposed in response to Trump’s tariffs, though neither side offered much detail about how those measures would be rolled back. US Commerce Secretary Howard Lutnick was quoted by Bloomberg as saying: “They’re going to deliver rare earths to us” and once they do “we’ll take down our countermeasures.”<h2>Beijing’s cautious approach</h2>While the White House framed the deal as a breakthrough, Beijing signalled it would continue vetting export licences carefully, citing national security concerns. China’s embassy in Washington did not immediately respond to requests for comment. According to industry sources, China has taken its dual-use restrictions on rare earths “very seriously” and is scrutinising buyers to ensure materials are not diverted to US military programmes, as per Reuters. &nbsp;This strict vetting has slowed licensing approvals, particularly for shipments bound for the US or routed through third countries such as India.&nbsp;One European official told Reuters that China was approving the “bare minimum” of licences to avoid European production shutdowns while maintaining leverage in the broader trade dispute.<h2>Automakers still on alert</h2>Automotive giants remain wary of further disruption. Volkswagen told Reuters its supply of rare earth components was currently stable, while Stellantis said it had resolved its immediate production concerns. But the underlying risk of a fresh shortage remains real. Two weeks ago, the car industry was in “full panic”, according to an executive at a leading US supplier and a source with knowledge of a major European carmaker’s supply chain, both speaking anonymously to Reuters.&nbsp;Even now, delays are causing headaches for American firms. US magnet maker Dexter Magnetic Technologies, which supplies both civilian and defence industries—has received just five of 180 export licences since April “It’s an extended delay,” CEO Kash Mishra told Reuters. “It’s 45 days trying to get the paperwork right for the supplier, and then it’s 45 more days or so before any licences are granted.”<h2>Trade war truce remains fragile</h2>The rare earth dispute has become a central front in the wider US–China trade war that has escalated under President Trump’s administration. In response to China’s critical mineral restrictions, Washington slapped new export controls of its own, blocking shipments of semiconductor design software, aircraft components and other goods to Chinese firms.&nbsp;Earlier in June, Trump said there was an agreement with China in which Beijing would resume supplying magnets and rare earth minerals, while the US would allow Chinese students into its colleges and universities. While this week’s deal marks a tentative de-escalation, the fundamental mistrust between the two economic superpowers remains.&nbsp;For now, automakers and technology firms hope the flow of rare earth materials will resume quickly enough to prevent fresh production stoppages. But with hundreds of export licences still pending and both governments keeping the details of their agreement vague, the supply chain remains anything but secure.&nbsp;(With inputs from the agencies)&nbsp;

A fragile trade truce between the US and China offers temporary relief to carmakers and tech firms amid ongoing delays in rare earth magnet exports, with hundreds of licence applications still stalled and fresh supply risks looming.

Global carmakers and tech giants are breathing a cautious sigh of relief as China’s rare earth magnets start flowing again, but supply chain uncertainty lingers despite a diplomatic breakthrough between Washington and Beijing aimed at easing critical mineral export restrictions. After weeks of industry alarm, the threat of mass shutdowns across automotive production lines is easing. European suppliers report receiving enough Chinese export licences to keep factories running in July, avoiding the “full panic” seen earlier this month. However, hundreds of licence applications remain stuck in China’s opaque approval system, with exporters prioritising deliveries to familiar partners and leaving many US-bound shipments delayed or blocked entirely. Licences speed up but hurdles remain China imposed strict export controls on seven rare earths and related magnets in April, retaliating against US tariffs announced by President Donald Trump. The move sent shockwaves through supply chains critical to automakers, aerospace manufacturers, semiconductor firms and military contractors. According to Reuters, export volumes of rare earth magnets from China have plunged by roughly 75 per cent since the restrictions took effect, forcing production halts at plants in Asia, Europe and the United States. But industry groups say the worst-case scenario has been avoided for now. Nils Poel, head of market affairs at European supplier association CLEPA, said the rate of licence issuance has accelerated to around 60 per cent from 25 per cent in recent weeks. “Overall the feeling is that we probably will still have production in July and that the impact will be manageable,” Poel told Reuters. “Maybe here and there a production line will be affected, but we have avoided that for the moment.” US and China agree to speed up shipments The pressure on global supply chains prompted urgent high-level diplomacy. On Thursday, a White House official said the US and China had reached an “understanding” to expedite rare earth shipments to American buyers. “The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official told Reuters, referring to trade talks held in May. That deal included China’s commitment to remove non-tariff countermeasures it had imposed in response to Trump’s tariffs, though neither side offered much detail about how those measures would be rolled back. US Commerce Secretary Howard Lutnick was quoted by Bloomberg as saying: “They’re going to deliver rare earths to us” and once they do “we’ll take down our countermeasures.” Beijing’s cautious approach While the White House framed the deal as a breakthrough, Beijing signalled it would continue vetting export licences carefully, citing national security concerns. China’s embassy in Washington did not immediately respond to requests for comment. According to industry sources, China has taken its dual-use restrictions on rare earths “very seriously” and is scrutinising buyers to ensure materials are not diverted to US military programmes, as per Reuters. This strict vetting has slowed licensing approvals, particularly for shipments bound for the US or routed through third countries such as India. One European official told Reuters that China was approving the “bare minimum” of licences to avoid European production shutdowns while maintaining leverage in the broader trade dispute. Automakers still on alert Automotive giants remain wary of further disruption. Volkswagen told Reuters its supply of rare earth components was currently stable, while Stellantis said it had resolved its immediate production concerns. But the underlying risk of a fresh shortage remains real. Two weeks ago, the car industry was in “full panic”, according to an executive at a leading US supplier and a source with knowledge of a major European carmaker’s supply chain, both speaking anonymously to Reuters. Even now, delays are causing headaches for American firms. US magnet maker Dexter Magnetic Technologies, which supplies both civilian and defence industries—has received just five of 180 export licences since April “It’s an extended delay,” CEO Kash Mishra told Reuters. “It’s 45 days trying to get the paperwork right for the supplier, and then it’s 45 more days or so before any licences are granted.” Trade war truce remains fragile The rare earth dispute has become a central front in the wider US–China trade war that has escalated under President Trump’s administration. In response to China’s critical mineral restrictions, Washington slapped new export controls of its own, blocking shipments of semiconductor design software, aircraft components and other goods to Chinese firms. Earlier in June, Trump said there was an agreement with China in which Beijing would resume supplying magnets and rare earth minerals, while the US would allow Chinese students into its colleges and universities. While this week’s deal marks a tentative de-escalation, the fundamental mistrust between the two economic superpowers remains. For now, automakers and technology firms hope the flow of rare earth materials will resume quickly enough to prevent fresh production stoppages. But with hundreds of export licences still pending and both governments keeping the details of their agreement vague, the supply chain remains anything but secure. (With inputs from the agencies)

Global automakers dodge immediate rare earth shortages after a US–China deal speeds up shipments, but lingering export bottlenecks keep supply chains on edge.

China’s rare earths flow again but supply risks remain as US and Beijing strike deal

Beijing’s grip on critical minerals is tightening and the global tech and defence sectors are feeling the heat.&nbsp;China’s exports of rare earth permanent magnets plunged by 52.9 per cent in May compared to April, sinking to their lowest monthly level in over five years, according to official data released by the General Administration of Customs, as reported by Reuters.&nbsp;Shipments dropped to just 1,238 metric tons, marking not only a month-on-month crash but also a 74 per cent slump compared to the same period last year. The data underscores the growing global impact of China’s stricter export curbs on these strategic materials.<h2>What’s driving the export plunge?</h2>The sharp drop follows Beijing’s move in early April to tighten export controls on seven types of medium-to-heavy rare earth compounds and select magnet products. China, which produces over 90 per cent of the world’s rare earth magnets, cited national security and supply chain stability as the rationale behind the new rules.&nbsp;Industry insiders told Reuters that Chinese customs officials have become increasingly cautious in approving outbound shipments, especially magnets, a product category that contains various chemical compositions but is grouped under a single export code. This ambiguity, combined with tighter screening, has created bottlenecks.<h2>Global impact on high-tech industries</h2>Rare earth magnets are crucial components in electric vehicles, wind turbines, smartphones, aerospace systems, and military equipment. The sharp decline in Chinese exports is now reverberating across global supply chains, raising concerns for manufacturers dependent on steady flows of these materials.&nbsp;Even lower-performance magnets used in household appliances and consumer electronics are reportedly being held up at customs, due to confusion over the applicability of the new curbs, sources told Reuters.<h2>Beijing promises approvals but offers few details</h2>China’s commerce ministry said on Thursday that it had approved “a certain number” of export licence applications. However, no breakdown or figures were provided.&nbsp;Two major Chinese producers — JL MAG Rare-Earth and Innuovo Technology — recently confirmed that they had secured export permits for a limited number of clients, offering a glimmer of hope for some buyers, though broader supply disruptions persist.&nbsp;Between January and May 2025, China’s total exports of rare earth magnets dropped 14.5 per cent year-on-year to 19,132 tons, the lowest for the period since 2021, as per Reuters.<h2>A strategic lever in trade diplomacy</h2>The rare earth export slowdown comes even as US-China trade tensions show tentative signs of easing. Earlier this month, Beijing pledged to accelerate the export approval process, a signal of goodwill following recent diplomatic engagement with Washington.&nbsp;Still, the sharp drop in May suggests that policy implementation on the ground remains tight, and global industries may face months of turbulence ahead.&nbsp;With the world’s clean energy and defence ambitions increasingly tied to rare earth availability, China’s export chokehold is quickly becoming one of the key fault lines in global trade and technology geopolitics.&nbsp;(With inputs from the agencies)

This decline follows Beijing tightened export controls citing national security. Industry bottlenecks have arisen from stricter customs approvals. 

Beijing’s grip on critical minerals is tightening and the global tech and defence sectors are feeling the heat. China’s exports of rare earth permanent magnets plunged by 52.9 per cent in May compared to April, sinking to their lowest monthly level in over five years, according to official data released by the General Administration of Customs, as reported by Reuters. Shipments dropped to just 1,238 metric tons, marking not only a month-on-month crash but also a 74 per cent slump compared to the same period last year. The data underscores the growing global impact of China’s stricter export curbs on these strategic materials. What’s driving the export plunge? The sharp drop follows Beijing’s move in early April to tighten export controls on seven types of medium-to-heavy rare earth compounds and select magnet products. China, which produces over 90 per cent of the world’s rare earth magnets, cited national security and supply chain stability as the rationale behind the new rules. Industry insiders told Reuters that Chinese customs officials have become increasingly cautious in approving outbound shipments, especially magnets, a product category that contains various chemical compositions but is grouped under a single export code. This ambiguity, combined with tighter screening, has created bottlenecks. Global impact on high-tech industries Rare earth magnets are crucial components in electric vehicles, wind turbines, smartphones, aerospace systems, and military equipment. The sharp decline in Chinese exports is now reverberating across global supply chains, raising concerns for manufacturers dependent on steady flows of these materials. Even lower-performance magnets used in household appliances and consumer electronics are reportedly being held up at customs, due to confusion over the applicability of the new curbs, sources told Reuters. Beijing promises approvals but offers few details China’s commerce ministry said on Thursday that it had approved “a certain number” of export licence applications. However, no breakdown or figures were provided. Two major Chinese producers — JL MAG Rare-Earth and Innuovo Technology — recently confirmed that they had secured export permits for a limited number of clients, offering a glimmer of hope for some buyers, though broader supply disruptions persist. Between January and May 2025, China’s total exports of rare earth magnets dropped 14.5 per cent year-on-year to 19,132 tons, the lowest for the period since 2021, as per Reuters. A strategic lever in trade diplomacy The rare earth export slowdown comes even as US-China trade tensions show tentative signs of easing. Earlier this month, Beijing pledged to accelerate the export approval process, a signal of goodwill following recent diplomatic engagement with Washington. Still, the sharp drop in May suggests that policy implementation on the ground remains tight, and global industries may face months of turbulence ahead. With the world’s clean energy and defence ambitions increasingly tied to rare earth availability, China’s export chokehold is quickly becoming one of the key fault lines in global trade and technology geopolitics. (With inputs from the agencies)

China's exports of rare earth permanent magnets fell sharply by 52.9% in May, marking a five-year low at 1,238 metric tons, down 74% from the previous year.

China tightens grip on rare earths as magnet exports drop 53% in May