Beijing: China's rare earth magnet exports to the United States surged in June, increasing over sevenfold compared to May, as firms rushed to obtain these vital minerals following a trade agreement between Beijing and Washington.

According to Anadolu Agency, China shipped 353 metric tons of rare earth permanent magnets to the United States in June, marking a 660% increase on a monthly basis, based on data from China's General Administration of Customs. Despite this significant rise, the deliveries were nearly half of what they were a year ago in June.

After Germany, the United States was the second-largest recipient of rare earth magnets in June. China exported a total of 3,188 metric tons of rare earth magnets worldwide in June, an increase of approximately 158% from May. However, this figure was about 38% lower than the same period in 2024.

The surge in exports followed a preliminary trade agreement reached by the United States and China last month. This agreement eased restrictions on Chinese rare-earth exports and scaled back certain US technology curbs on exports to China. In a related development, chip giant Nvidia announced last week that it will resume sales of its H20 artificial intelligence chips to China after the US government pledged to remove licensing restrictions.

Earlier this year, Beijing imposed export limits in April on several vital magnets used in high-tech devices, including wind turbines, electric cars, and MRI scanners. This move was in retaliation for US tariffs targeting Beijing, forcing companies to obtain export licenses. China retains its dominance in the global market, producing more than 90% of the world's rare earth magnets and other rare earth materials, despite the US's efforts to reduce dependency.

Additionally, last week saw Apple and mining firm MP Materials announce a $500 million investment in a facility to recycle rare earth magnets, aimed at bolstering the tech company's US base.