Input Stories

U.S. companies are importing many more rare-earth magnets, critical inputs in all sorts of products from cars to MRI machines, from China (CNBC).

By the numbers: “The U.S. received about 353 metric tons of rare-earth permanent magnets in June, up 660% from the previous month, data released by China’s General Administration of Customs showed, though the exports were about half that from June last year.”

• “In total, China exported 3,188 metric tons of rare-earth permanent magnets globally last month, up nearly 160% from May, but 38% lower compared with the same period last year.”

The background: China, which controls 90% of the global market for these materials, restricted the export of certain rare-earth magnets in April.

• “The growth in exports came after Washington and Beijing agreed last month on a trade framework that included easing controls on Chinese rare-earth exports as well as a rollback of some American tech restrictions for shipments to China.”
• Manufacturers in the U.S. are calling on U.S. and Chinese negotiators to continue their discussions and to ensure that the process for obtaining export licenses is consistent, predictable and timely.

The bigger picture: Though the transition away from Chinese suppliers will take years, the U.S. is working to create or boost sources of critical minerals both at home and in allied nations.

• “Apple and miner MP Materials announced a $500 million deal last week for the development of a recycling facility that will reinforce the iPhone maker’s U.S. magnet supply chain.”

The NAM says: “The U.S. and China must come to a mutual agreement in the short term to ease the uncertainty plaguing supply chains,” said NAM Director of Energy and Resources Policy Michael Davin. “However, more resources must be devoted to boosting supply chains in the U.S. to secure American energy and technological dominance.”