China has taken a step regarding Rare Earth Magnets that has surprised industrialists and strategists worldwide. In June, China suddenly increased its exports of these magnets by more than double. According to government data, while China exported 1,238 tons of rare earth magnets in May, this figure reached 3,188 tons in June. This massive increase has reactivated the entire global supply chain.
America Benefited the Most
The United States appeared to benefit the most from this export surge. In May, China sent only 46 tons of rare earth magnets to the US, while in June, this figure jumped to 353 tons. This means America received almost seven times more supply in a single month. This shift occurred at a time when trade tensions between China and the US were resurfacing, and concerns regarding rare earth metals persisted.
Is This a Strategic Move by China?
Experts believe that this move by China may not be just a trade relief but a strategic maneuver. In early April 2025, China imposed restrictions on 7 out of 17 Rare Earth Elements. These metals are used in electric vehicles, fighter jets, mobile phones, computers, wind turbines, and even missile systems.
At that time, companies around the world were on the verge of shutting down their plants. Especially countries like the United States, where these magnets are heavily used, faced the direct threat of supply cuts. In this context, the sudden increase in exports in June is not considered a mere coincidence.
Export Increased After Geneva Meeting
In June, a crucial meeting took place in Geneva between trade representatives from the US and China. The purpose of this meeting was to reduce trade tensions and restore the supply of essential materials. Just days after this meeting, China rapidly increased its export of rare earth magnets.
Following this meeting, US President Donald Trump publicly stated that China had agreed to fulfill the supply of rare earth magnets. He described it as a positive sign towards a trade truce.
Why Rare Earth Magnets Are Important
Rare earth magnets have become a crucial part of modern technology. The special characteristic of the elements present in them is that they generate tremendous magnetic power even in very small sizes.
They are used particularly in electric vehicle motors, mobile phone speakers, wind turbine generators, solar panels, and defense equipment. China is the largest producer and exporter of these magnets, with approximately 90 percent of the world's rare earth magnets originating from China.
Chaos After the Ban
When China imposed a ban on the export of 7 rare earth elements at the beginning of April, it caused turmoil in global markets. Major countries like the United States, Japan, South Korea, and the European Union became concerned about the lack of necessary raw materials for their factories. This was a significant blow, especially for the American defense industry.
Global Dependence on China's Manufacturing
When it comes to rare earth magnets, the world is heavily dependent on China's manufacturing industry. Whether one is manufacturing an iPhone or a battle tank, these elements are required in all of them. China began investing in this sector decades ago and now holds a dominant position.
Other Countries Are Also Preparing
In light of recent developments, the US, Japan, and European countries are now trying to establish their own rare earth supply chains. However, this process is slow and costly.
Some countries are investing in rare earth metal mines in Africa, Australia, and Latin America, but it may take several years for the supply from these sources to stabilize.
Increased Scrutiny on China's Moves
Now that China has increased exports again, strategic experts around the world are trying to understand what its next move will be. Is this a permanent relief or just a temporary tactic?
One thing is clear: China is using rare earth magnets not just as a trading resource but as a tool for geopolitical pressure. And that is what makes it an even bigger issue.
Rare Earth Magnets Become Part of the Global Power Game
Now, Rare Earth Magnets are no longer just scientific experiments or industrial components. They have become part of international politics, diplomacy, and security policy. And China has emerged as the biggest power in this game for the time being.
