U.S. firms scramble to secure rare-earth magnets — imports from China surge 660%

Annealed neodymium iron boron magnets sit in a barrel at a Neo Material nologies Inc

Bloomberg | Bloomberg | Getty ImagesChina's exports of rare-earth magnets to the United States in June surged more than seven times from the prior month, as American firms clamor to get hold of the critical elements ing a preliminary Sino-U

Furthermore, Trade deal (noteworthy indeed)

In April, Beijing placed restrictions on several critical magnets, used in advanced such as electric vehicles, wind turbines and MRI machines, requiring firms to receive licenses for export, given the current landscape

The move was seen as retaliation against U

Conversely, President Donald Trump's steep tariffs on China

Was the second-largest destination for China's rare-earth magnets, behind Germany, as it relies heavily on their imports for its large manufacturing sector, particularly automotive, electronics and renewable energy

Market analysis shows growth in exports came after Washington and Beijing agreed last month on a trade framework that included easing controls on Chinese rare-earth exports as well as a rollback of some American restrictions for shipments to China, in light of current trends

Nevertheless, Watch now2:5302:53Pentagon invests in MP Materials, guarantees floor price for rare earth mineralsSquawk Box AsiaAI behemoth Nvidia said last week it was planning to resume shipments of its H20 AI chips to China, after the exports were restricted in April

Moreover, Last month, controls on American AI chip software companies' in China had also been rolled back

Moreover, Additionally, Chinese rare-earth magnet ducers started announcing the apval of export licenses last month

Additionally, At the same time, If exports continue to increase, it will be of great benefit to companies that have been suffering from shortages of magnets due to the lengthy time required to secure export licenses

On the other hand, For example, several European auto-parts suppliers were forced to halt duction in recent months

The data indicates that magnet shortages had also hit emerging industries such as humanoid robotics, in this volatile climate

In April, Elon Musk said duction of Tesla's Optimus humanoid robots had been disrupted

China's controls on its rare-earths sector have mpted some global governments to reexamine their rare-earth supply chains and for ways to support domestic mining of the minerals

Moreover, However, experts say that setting up alternatives to China's rare-earth magnet supply chain could take years, as it requires an intricate cess of rare-earth element refining and separation

Moreover, "The separation cess is quite complex, and China has a lot of advantages in this after putting in decades of re into the cesses," Yue Wang, a senior consultant of rare earths at Wood Mackenzie, told CNBC last month, given the current landscape

One way that the U, considering recent developments

Has been trying to compensate for lack of rare-earth magnets is through increased recycling

Apple and miner MP Materials announced a $500 million deal last week for the development of a recycling facility that will reinforce the iPhone maker's U (which is quite significant)

Magnet supply chain, in this volatile climate

On the other hand, Additionally, Peter Alexander from financial consultancy Z-ben Advisors said that Washington's concessions on restrictions were a reflection of just how much leverage China has in its trade relationship with the United States, speaking on CNBC's "China Connection" on Monday.