Major Chinese maker of rare-earth magnets gets green light for US exports

By Annie Lee

 

A major Chinese manufacturer of rare-earth magnets received export permits to countries including the US, in a possible sign of easing tensions between Beijing and Washington.

 

JL Mag Rare-Earth Co. said that officials approved a certain number of export applications, and the company had permits for regions including the US, Europe and Southeast Asia, according to a statement on Wednesday. Its Hong Kong-listed shares surged as much as 12 per cent, hitting the highest intraday level since 2022. 

 

Rare earths have been at the center of the debilitating trade war between the US and China, with Beijing leveraging its control of the sector to push back against the Trump administration given that local producers account for about 70 per cent of global supply. High-level talks between Beijing and Washington in London this week saw the sides agree a plan to revive the flow of sensitive goods.

 

 

The commodities have an array of critical applications, making them vital for the auto industry, turbine makers, as well as some niche defence needs.

 

After the negotiations, US officials said they “absolutely expect” issues around shipments of rare-earth minerals and magnets to be resolved. The framework pact reached in the UK is subject to approvals from both countries’ presidents. 

 

Some Chinese suppliers to US companies recently received six-month export licenses for rare earths, but uncertainty remained amid a large backlog of applications, the American Chamber of Commerce in China said last week.

 

Ahead of the talks in London, exports of rare-earth magnets from China slumped in April, the last month for which data is available. Shipments were down by 54 per cent in value terms on-year. Data for May will be available later this month.