China's exports of rare-earth magnets to the United States have slowed to their weakest pace in years, according to data highlighted by The Kobeissi Letter. Monthly shipments averaged 479 tons in the first half of 2026, putting the year on track for the lowest annual monthly average since 2021. That is about 22 percent below the 586-ton monthly average China shipped between 2022 and 2024. Rare-earth magnets are a small but essential input for electric-vehicle motors, industrial robots, wind turbines, and defense hardware such as missile guidance systems, and China controls more than 90 percent of the world's supply. The weak flow comes despite an October truce between President Trump and President Xi in which Beijing pledged to keep rare-earth magnets moving as part of a broader pause in the trade war. The gap between that pledge and the actual trade data suggests China is still using export controls, deliberately or through bureaucratic friction, as leverage even after the truce. For US manufacturers, the shortfall keeps alive the case for building alternative supply outside China and for stockpiling critical minerals more broadly.
Why it matters · Rare-earth flow staying tight even after the trade truce signals China still holds the leverage, a read-through for defense, EV, and alternative rare-earth supply-chain stocks.
Worth asking · Rare-earth exports staying stuck despite the truce pledge, deliberate Chinese leverage or just bureaucratic delay?