Overview

• China has paused export restrictions on rare earth minerals for 28 U.S. entities for 90 days following a trade agreement reached on May 12, 2025.
• The suspension includes seven heavy rare earth elements critical for defense, aerospace, and clean energy technologies, but licensing requirements remain in place.
• China continues to dominate the global rare earth supply chain, controlling 70% of mining and over 90% of processing capacity worldwide.
• The temporary reprieve highlights China's strategic use of rare earths as a bargaining tool while maintaining leverage through export controls and licensing oversight.
• The U.S. is accelerating efforts to reduce its reliance on China by funding domestic mining, exploring e-waste recycling, and pursuing international partnerships.