China’s rare earth magnet exports fell 6.1% in September 2025 to 5,774 metric tons, ending a three-month streak of growth and sparking fears over global supply disruptions. This decline comes just before China expanded its export controls in October, tightening regulations on rare earth materials and their technologies, particularly targeting defense and semiconductor sectors. The move is widely viewed as Beijing leveraging its overwhelming dominance in critical minerals amid ongoing trade tensions with the United States.
Rare earth magnets, essential components in electric vehicles, renewable energy systems, electronics, and defense technologies, have China controlling nearly 90% of global production and refinement. The recent export reduction follows earlier restrictions imposed during spring 2025, which caused severe disruptions in automotive manufacturing and supply chains worldwide. Despite the September drop, year-over-year exports are still up 17.5%, highlighting volatile trade dynamics shaped by diplomatic talks and strategic resource management.
The United States, a key importer accounting for about 7% of China’s magnet exports, saw shipments fall nearly 29% compared to August 2025. Meanwhile, alternative markets like Vietnam experienced growth, reflecting shifting trade routes. Experts warn that breaking China’s rare earth monopoly will require sustained investments and a decade-long commitment. For now, global industries remain vulnerable to Beijing’s strategic export decisions amid geopolitical tensions and supply chain uncertainties.
