Exports of rare earth products from China, including powerful magnets that have become a point of contention in relations with the United States, fell in May 2025 to the lowest level in five years, reports Baltimore Chronicle with reference to Bloomberg. The total export volume dropped by 61% compared to May of the previous year, reaching only 2,117 tons — the lowest figure since February 2020.
This category of rare earth products, apart from minerals and metals, is mostly dominated by magnets. China produces about 90% of the world’s permanent rare earth magnets and uses export controls as leverage in the ongoing trade dispute with the United States.
The export restrictions introduced on April 4, 2025, covered not only seven specific rare earth elements but also magnets containing even minimal amounts of these elements. In the first quarter of 2025, before the new regulations came into effect, magnets accounted for nearly 90% of exports in this category.
The shortage of these critical magnets is already causing concern in industries such as automotive manufacturing, impacting markets in the US, Europe, and India.
Earlier we wrote that China restricts drone part exports.