Overview

• Under the June 27 agreement, China’s commerce ministry has started reviewing and approving export licenses for rare earth magnets and other controlled materials.
• Resumed shipments so far cover lighter rare earths, while heavy rare earth elements and magnet-making technology remain tightly regulated.
• Only about 25% of U.S. license applications had been approved by June, causing some U.S. plants to idle due to material shortages.
• Washington and allied governments are ramping up investments in domestic mining, processing facilities and partnerships with countries such as Kazakhstan to diversify supply chains.
• Analysts warn that bureaucratic requirements and the truce’s August expiration could prolong market volatility, prompting manufacturers to maintain buffer stocks.