China’s Rare-Earth Exports to US Surge to Highest Since January Despite August Dip

Rare-earth metals flow hits peak volume—just as tech and defense sectors scramble for stable supply chains.

Strategic Shifts

Exports to the US reached their highest level since January, even after a noted dip in August. That’s not a typo—it’s geopolitics in motion. While monthly numbers wobble, the trendline screams resilience.

Supply & Sovereignty

Critical minerals keep moving. From semiconductors to missile systems, rare earths aren’t just elements—they’re economic leverage. And when it comes to leverage, China knows how to flex.

Market Realities

Noise in the data? Sure. But direction matters more than monthly hiccups. As Wall Street frets over inflation and rate hikes, Beijing plays the long game—one where rare earths are the ultimate chess piece. Guess who’s winning?

Beijing has been demonstrating its control over rare earths

Almost six months ago, Beijing sent a clear signal about its control over critical inputs by suspending exports of high-strength rare earths used in several industries. That step injected fresh urgency into projects already underway to find alternative sources. In the US, four magnet plants are now either completing construction or starting production, while a particularly large facility opened in Eastern Europe. 

China has used its control of magnet supplies in talks with Trump and the European Union. Since the initial halt, Beijing has permitted some shipments while keeping tighter oversight. China has also limited exports of magnets to Europe to push the EU to rethink tariffs on electric cars made in China.

Concerns about China’s dominance began surfacing years ago within US and EU agencies. Several projects nearing completion have benefited from public funding support.

On Friday, Neo Performance Materials, a Canadian company, opened its factory in Estonia, which in a single MOVE has almost doubled Europe’s combined magnet-making capacity. Furthermore, Neo has also installed the equipment required to increase the output of the plant to over 2x over the next few years.

Demand outside Asia is large and mostly met by China currently 

Europe and North America buy almost 40,000 tons of rare-earth magnets each year for robots, cars, and other items, based on data by Adamas Intelligence. Countries beyond Asia currently make less than 2,000 tons annually, with most of that production in Finland and Germany. 

Japanese companies add about 25,000 tons a year in Japan and Vietnam, mainly for customers in South Korea and Japan, along with automakers. China, by contrast, turns out over 200,000 tons a year. Many of those magnets are used in various devices assembled in Chinese factories, such as motors, and shipped abroad as part of China’s large FLOW of goods.

Companies working to lift output outside China are moving ahead, but the pace is slow. MP Materials, owner of the Mountain Pass mine along the California-Nevada border, is constructing a 1,000-ton magnet plant in Texas that will first supply General Motors. 

The company plans to expand and add a second facility to raise total annual capacity to 10,000 tons in the next few years. The effort received a lift this summer when the US Defense Department decided that it WOULD invest $400 million.

USA Rare Earths has built a plant in Stillwater, Oklahoma. The factory will reach an annualized rate of 600 tons by 2026 end, and is expected to double the rate by the start of 2027, according to the senior vice president of the company, David Bush. Another company, Noveon Magnetics, built its plant NEAR the city of Austin in Texas.

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