China’s rare earth magnet exports to U.S. falls for second month, reversing brief recovery
Annealed neodymium iron boron magnets were sold Friday, June 11, 2010, at Neo Material Technologies Inc.’s Magnequench Tianjin Co. in Tianjin, China. It sits in a vat before being ground into powder in his factory.
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Chinese exports of rare earth magnets to the United States fell sharply in September, ending a months-long recovery as the two economic superpowers remained locked in trade disputes and Washington sought to secure alternative supply chains.
Data from China’s General Administration of Customs on Monday showed exports to the United States fell 28.7% to 420.5 tons in September compared to August. This was also 30% lower than a year ago.
It was the second consecutive monthly decline after a brief recovery that began in June, when Beijing agreed to accelerate rare earth export permits during trade talks with US officials in London.
Chinese rare earth magnet companies reportedly Starting in September, export license applications face stricter scrutiny. The customs figures also date from before Beijing expanded its export licensing regime earlier this month.
China has a stranglehold on the production of rare earth permanent magnets. 90% of the marketThere’s a similar dominance in refining the elements used to make them, according to the International Energy Agency.
Magnets are vital for technologies such as electric vehicles, renewable energy, electronics and defense systems. Beijing’s previous restrictions caused shortages and supply disruptions across industries earlier this year.
China’s export restrictions extend beyond the United States, customs data show; Total rare earth magnet shipments fell 6.1% in September compared to August.
The outages have prompted the United States and its partners to step up efforts to build alternative rare earth elements and critical mineral supply chains.
On Monday, the United States and Australia signed a mining agreement worth up to $8.5 billion. The agreement includes financing of numerous projects to increase the supply of rare earth and critical mineral materials used in defense production and energy security.
The deal comes as US-based Noveon Magnetik signed a memorandum of understanding It joined with Australia’s Lynas Rare Earths earlier this month to form a strategic partnership aimed at developing a scalable American supply chain for rare earth magnets.
However, the production of rare earth magnets is quite complex and relies on upstream rare earth element mining and refining processes.
Only a handful of U.S. companies currently produce magnets domestically, and many more are in the early stages of production.
