American firms are struggling to provide rare groundwater magnets

In June, exports of Chinese rare magnets in the US grew more than seven times since the previous month, when US companies seek critical elements after the previous Sino-US trading transaction.

In April, Beijing placed restrictions on several important magnets used in advanced technologies such as electric cars, and MRIs that require companies to receive export licenses. The move was seen as revenge against the sharp tariffs of US President Donald Trump in China.

In Beijing there is a podlash on the production of rare earthworks with counted 90% of the market, As well as similar content on the processing of rare friends used to make magnets.

In June, the United States received about 353 metric tons of rare prizes, which is 660% more than in the previous month, published by the common customs administration, although exports amounted to about half of June last year.

The United States was the second largest place for rare countrymen in China, behind Germany, as it greatly relies on their import sector, especially in car, electronics and renewable energy sources.

Last month, China exported 3188 metric tons of rare land, which is almost 160% compared to May, but 38% lower than the same period last year.

Export growth occurred after last month in Washington and Beijing agreed trade base This included a mitigation of the Chinese rare export level, as well as the rollback of some US technological restrictions to ship to China.

Ai behemoth Nvidia Last week, he said he plans to resume the supplies of his H20 AI chips to China after the export was restricted in April. Last month was also control over the company American AI Chip Software Companies in China rolled back.

Chinese manufacturers rarely land Started to announce Approval of export licenses last month.

If exports continue to increase, it will be of great benefit to companies that suffer from the lack of magnets from the long time required to ensure export licenses. For example, several European auto parts were forced stop production In recent months.

Magnet deficiency also suffered from new industries such as humanoid robotics. In April, Elon Musi said pluck.

Chinese control in its rare sector has become accustomed to some world governments to review their rare supply networks and look for ways to support home mining.

However, experts point out that the creation of an alternative to the rarely mute magnet chain in China may take years, as a complicated process of rare grounding and separation of elements is required.

“The separation process is quite complicated, and China has many advantages in this after the decades of research research,” said Yu van, senior consultant of rare land in Wood Mackenzi.

One way the US tried to compensate for the lack of rare magnets is an increase in disposal. Apple and miner MP’s material announced a 500 million dollars deal Last week to develop a processing facility that will strengthen the iPhone Maker supply chain.

Peter Alexander of Financial Advisors Z-Ben Advisors said the latest concessions in Washington on technical restrictions were a reflection of how many in China is in their trade relations with the United States, speaking to CNBC “Chinese connection“Monday.