China Ramps Up Rare Earth Exports Amid Renewed US Ties and Global Supply Concerns

China significantly boosted exports of rare earth minerals in November, the same month that Chinese President Xi Jinping and former US President Donald Trump reached an agreement to boost the supply of the key minerals. According to the Customs Department, the second straight month increase in exports of rare earths by China was 26.5% higher compared to October at 5,494 tons. How much of the increase is attributed to increased supplies to the US and Europe will be determined by the data, which will be released on December 20th.

Rare earths are used in sectors such as auto, electronics, and defense. In April 2025, China imposed new export regulations on these 17 minerals. The requirement for separate licenses for each shipment significantly slowed supplies and impacted the supply chains of many auto companies. Following the Xi-Trump meeting, China began issuing "general licenses" for the first time, valid for one year. Their impact is expected to be reflected in trade figures next year. From January to November, China exported a total of 58,193 tons of rare earths, an 11.6% increase over the previous year.

Rare earths are a group of 17 unique elements. Their atomic structure gives them extremely strong magnetic properties. They are used in automobile and electric vehicle motors, robotics, defense equipment, TV and computer screens and speakers, hard drives, and jet engine magnets. Neodymium is used to make strong magnets, while yttrium and europium are used in color display technology. According to one expert, "any device you can turn on and off is almost certain to use rare earths." Rare earths are crucial for everything from medical technology like laser surgery and MRIs to modern defense systems.

By 2025, rare earths will become a necessity not just for modern technology, but also for AI technology. GPUs, large servers, and cloud infrastructure all rely on these minerals. China is the largest player in this field, accounting for 70% of production and 90% of processing capacity. The biggest challenge for AI companies now is the consistent availability of raw materials, rather than tariffs or regulations. A major disruption to rare earth supplies could trigger another major crisis in global financial markets.