Overview

• Under the preliminary accord announced by President Trump, China would front-load shipments of full magnets and rare earth elements critical to U.S. defense and automotive industries.
• Beijing retains its export licensing regime for seven key rare earth elements, giving regulators granular control over future shipments.
• A Global Rights Compliance report on forced Uyghur labor in Xinjiang’s mines has intensified calls for ethical supply chains and U.S. scrutiny of import sources.
• Since 2020, the Pentagon has committed more than $439 million to domestic rare earth projects and granted MP Materials $35 million to build a heavy rare earth processing facility.
• India’s auto sector, which relies on China for over 80% of its rare earth magnets, is sending industry delegates to Beijing to secure export permits before production slows.