China Floods Global Markets With Rare Earth Magnets: What’s Behind The Rapid Export Surge?

China’s rare earth magnet exports reached highest in the last six-months. It signals a huge change in global trade movements of the critical minerals powering electric vehicles (EVs), smartphones, and defence technologies.

As per the General Administration of Customs, exports soared nearly 75% from June, attaining 5,577 metric tons, the maximum monthly figure since January 2025.

The outpouring marks a 5.7% YoY rise and suggests supply chains are steadying after export restrictions earlier this year. In April and May, exports fell significantly due to extended approval procedures tied to new licensing rules, announced in response to rising US tariffs. The blockage triggered widespread anxiety among manufacturers, particularly in the EV sector.

Germany, US Drive Demand After Diplomatic Breakthroughs

Germany continued to be among the top buyer of China’s rare earth magnets, importing 1,116 tons in July, a 46% increase from June. The US tracked with a 75.5% MoM jump, getting 619 tons, a 4.8% upsurge over the same period last year. The reflection comes on the bounders of negotiations between Beijing, Washington, and Brussels, which is projected to ease trade tensions and continue critical materials flows.

Long-Term View: Recovery or Reliance?

China has exported 27,897 metric tons of rare earth magnet from January to July 2025. Though, still down 15% from the same period in 2024, the gap is closing, improving from an 18.9% dip in the first half. 

Industry analysts are careful whereas trade volumes are rebounding, long-term global dependence on China’s rare earth industry remains a strategic concern, especially among geopolitical uncertainties across regions.

Also Read: India & China Cozy Up Amid Trade Wars: Here’s What Investors Need to Know NOW