Overview

• China will issue rare earth export permits to U.S. companies in six-month increments, restoring shipments halted since April.
• The agreement remains subject to U.S. presidential approval and does not lift controls on military-grade rare earth magnets.
• U.S. manufacturers had warned of shutdowns following China’s initial export halt triggered by Washington’s tariff hikes.
• Heavy reliance on Chinese supplies underscores vulnerabilities in U.S. defense systems and clean energy technologies.
• U.S. initiatives to diversify rare earth sources and bolster domestic processing are gaining momentum in response to Beijing’s leverage.