China’s rare earth exports rose sharply in May, jumping 23% compared to April, despite new government restrictions on some critical minerals, according to Chinese customs data released on Monday.
The monthly export volume was the highest in a year, even though curbs introduced in early April were expected to limit overseas supply. May marked the second full month under the new restrictions.
The data did not break down the types of rare earth minerals exported, making it unclear how the export controls are affecting the specific elements targeted by the policy. Further details are expected later in June.
In contrast, exports of finished magnets—a key product made from rare earths—fell sharply. In April, Chinese magnet exports were cut in half from the previous month, disrupting global supply chains.
China announced in April that it would restrict exports of several rare earth elements, including dysprosium, gadolinium, scandium, terbium, samarium, yttrium, and lutetium. These “heavy” and “medium” rare earths are essential in manufacturing electric vehicle motors, hybrid transmissions, and various defense systems such as jets, missiles, and drones.
The policy shift has raised concerns among automakers. Germany’s automotive industry group, VDA, warned last week that the curbs could lead to production delays or even factory shutdowns. “If the situation is not changed quickly, production delays and even production outages can no longer be ruled out,” said VDA head Hildegard Mueller in a statement to Reuters.
In May, the Alliance for Automotive Innovation—which represents companies like General Motors, Toyota, and Volkswagen—also cautioned that without reliable access to magnets and rare earths, car production lines could slow or stop altogether.