China continued to heavily restrict global exports of export-controlled rare earth compounds and metals in July 2026. U.S.-bound shipments of export-controlled compounds and metals moderately increased in July (though they remained well below historical levels), while exports to Japan remained minimal. Korea remained the largest export destination. Meanwhile, China continued to export large volumes of rare earth permanent magnets globally. Year-to-date shipments to the United States remained below 2024 levels, though they did recover in July.

1. China’s exports of export-controlled rare earth compounds and metals to the United States increased in July 2026, driven primarily by yttrium oxide exports, which reached 29 metric tons.

China shipped 29 metric tons of rare earth compounds and metals covered by the April 2025 export controls to the United States in July 2026, up from just 8 metric tons in June. The increase was driven primarily by shipments of yttrium oxide, with all other rare earth metals and compounds falling to zero in July 2026. Despite the rebound, July exports remained well below levels recorded before the April 2025 controls, when monthly shipments to the United States frequently exceeded 50 metric tons and at times surpassed 100 metric tons.

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2. China’s global exports of rare earth compounds and metals increased from June to July 2026, though they were still below typical historical levels. Results for individual minerals were mixed.

The July increase reflects an uneven recovery across individual rare earth elements. Global dysprosium exports returned to around historical levels in July, though none were exported to the United States. Yttrium exports remained well below historical levels even though their exports to the United States somewhat recovered. Terbium exports also remained minimal, and lutetium oxide exports fell to zero.

3. China’s exports of export-controlled rare earth compounds and metals to Japan remained minimal in July, while shipments to South Korea continued to increase.

China’s exports of export-controlled rare earth compounds and metals to Japan remained near historic lows in July 2026, continuing the sudden halt in shipments since China imposed additional export controls on Japan in January. Prior to the additional export controls, Japan had been one of China’s largest destinations for these products and continued to receive significant volumes even after the April 2025 export controls took effect. Since January 2026, however, shipments to Japan have been minimal. Japanese import data indicate sharply higher yttrium oxide prices for minerals that Japan has been able to secure.

South Korea has followed the opposite trend. China’s shipments of export-controlled rare earth compounds and metals continued to increase in July, building on gains in recent months. South Korea received all 11 metric tons of China’s dysprosium exports in July and was also a major destination for yttrium exports. The diverging trends have become increasingly pronounced, with exports to Japan remaining heavily constrained while shipments to South Korea continue to rise to above historic levels.

4. China continues to ship large volumes of rare earth magnets globally, though the United States remains an exception among major destinations.

China’s global exports of rare earth permanent magnets remained strong in July 2026, totalling 5,375 metric tons. This was slightly above the 5,278 metric tons exported in July 2024 and continued the broader recovery in magnet exports that began after shipments fell sharply following the imposition of the April 2025 export controls.

Exports to most major destinations have also increased compared with 2024. From January through July 2026, China exported 15,165 metric tons of rare earth magnets to the European Union, up roughly 17 percent from the same period in 2024. Shipments to South Korea increased by approximately 24 percent, Vietnam by 16 percent, India by 39 percent, and Thailand by 39 percent.

The United States remains the notable exception. China exported 3,521 metric tons of rare earth magnets to the United States from January through July 2026, approximately 16 percent below the 4,212 metric tons shipped during the same period in 2024. While China’s overall magnet exports have largely returned to or exceeded historical levels, shipments to the United States have yet to experience the same degree of recovery.

5. U.S. imports of sintered NdFeB magnets are shifting in both source and size, as suppliers outside China help offset lower Chinese shipments.

By weight, U.S. imports of sintered NdFeB permanent magnets remained below H1 2024 levels in H1 2026, as increased imports from Japan, the EU, and Southeast Asia only partially offset lower imports from China. At the same time, the total number of sintered NdFeB magnets imported rose above H1 2024 levels, suggesting that U.S. imports, particularly from China, are shifting toward smaller magnets. Conversely, imports, particularly from Japan and the EU, in H1 2026 appear to be shifting to larger magnets, based on the greater weight of imports relative to the number of sintered NdFeB magnets imported.