EU share of China’s rare earth magnet shipments jumps in June

Following the acceleration of licence approvals for the export of rare earth elements, China’s shipments of the minerals rebounded in June – and the proportion of its permanent magnets sent to the European Union rose to its highest level this year.

Last month, China exported 3,188 tonnes of rare earth permanent magnets – an essential component for a variety of products, including electric vehicles (EVs), wind turbines, smartphones and aerospace vessels. This represented a 157.5 per cent increase from May and a 38.2 per cent drop year on year, according to customs data.

Of this sum, some 1,364 tonnes of magnets were shipped to the EU, accounting for 43 per cent of June exports, up from 32 per cent in May. By comparison, the proportion for the United States stood at 11 per cent in June and 4 per cent in May.

The US bought 353 tonnes of the magnets in June, a 660 per cent surge over the figure for May, though still down 52 per cent from the year before.

After China imposed export controls on seven rare earth elements and magnets in retaliation for US tariff hikes in April, companies were required to obtain a government permit before shipping these products overseas.

As a result, China’s rare earth magnet export volume plummeted in April and May, each dropping by around 50 per cent month to month.

This made the minerals a point of contention in China-EU relations, as Beijing dominates the global supply chain of the materials critical to key European industries, particularly EVs.

South China Morning Post