The volume of rare earth elements exported by China to the global market fell by 22.58% in July compared to June, according to calculations based on figures released today by China’s General Administration of Customs. Despite this decline, there was a 21.42% year-on-year increase.
For the first seven months of the year, China exported 13.3% more rare earths than during the same period in 2024. However, according to customs reports, the value of these exports decreased by 23.3%.
The preliminary data released today do not specify the elements involved, nor do they disclose the countries of destination, providing only an aggregate total of rare earth sales.
Since April 2, amid escalating tariffs with the United States, Beijing has implemented a new licensing regime requiring foreign companies to seek authorization to export seven of the 17 minerals in the rare earth group (samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium) and their derived magnets, citing national security concerns.
This led to a sales decrease in April (-15.56%), although exports had surged in March (+22.57% compared to the previous month) and rose again in June (+32.02%, month-on-month), especially after the trade negotiations between China and the United States in London. During these talks, Beijing pledged to expedite the licensing process.
These controls have significantly impacted sectors that heavily rely on these materials, notably the automotive and defense industries. In 2024, China processed 99% of the world’s heavy rare earths and holds nearly half (49%) of the global reserves of these elements.
