China’s rare earth magnet exports to the US keep falling as Europe gains

China’s exports of rare earth permanent magnets to the United States continue to fall, at a time when Washington and its allies are stepping up efforts to reduce reliance on the country’s critical mineral supply chains.Shipments of permanent magnets to the US totalled 994 tonnes in January and February, down nearly 22.5 per cent year on year, according to data released on Friday by China’s General Administration of Customs. This marked the seventh consecutive month of decline.Over the two months, the US was China’s third-largest buyer of rare earth magnets, behind Germany and South Korea, accounting for 9.2 per cent of total exports.Exports to the EU, meanwhile, continued their upwards trend, reaching 4,775 tonnes in the first two months of 2026 – up 28.4 per cent year on year – and raising the bloc’s share of China’s magnet exports to 44.4 per cent.With dates for the Chinese New Year changing every year, Beijing typically combines January and February trade data to limit distortions.China holds a near-monopoly on the global supply and processing of rare earth elements – critical materials used in a wide range of hi-tech products, including electric vehicles, smartphones and spacecraft. Permanent magnets, which contain significant amounts of these elements, are in particularly strong demand.