Overview

• The June interim agreement obliges China to grant export licenses for solar panels, lithium-ion batteries and other clean-energy minerals to US firms after April’s tariff standoff.
• Restrictions on military-grade rare-earth magnets remain unchanged, keeping critical defense and aerospace manufacturers reliant on Chinese approvals.
• Since 2020, the Pentagon has allocated about $439 million in grants and loans to build a domestic rare-earth supply chain, far below China’s multibillion-dollar investments in clean-energy and semiconductor technology.
• The impending repeal of Biden-era clean-energy subsidies threatens to cut US battery manufacturing capacity by roughly 75 percent by 2030, deepening dependence on imported minerals.
• Rare-earth magnets power technologies from guided missiles to electric vehicles, and restricted US access risks widening the technological gap with Beijing.