China’s Rare Earth Exporter Says It Got Export Licenses for US and Other Regions

The announcement came just hours after trade officials from the United States and China wrapped up two days of negotiations in London. 

A loader shifts soil containing rare earth minerals to be loaded at a port in Lianyungang, in China's Jiangsu Province, on Sept. 5, 2010. STR/AFP via Getty Images

A leading trader of rare earth magnets in China has announced that authorities had granted export licenses for its shipments to several regions, including the United States.

JL MAG Rare-Earth disclosed the acquisition of the export licenses on June 10 through the Shenzhen Stock Exchange’s online platform but did not specify the date when the licenses were issued.

“We have begun carrying out export declarations in accordance with the law, following the introduction of export control measures on medium and heavy rare earth materials and related items,” it stated in response to an investor’s inquiry.

JL MAG mentioned that it obtained export licenses for the United States, Europe, Southeast Asia, and other regions. The company noted that its business is not involved in military equipment and that it will adhere to relevant laws and regulations.

The news sent the company’s shares soaring by 7.9 percent in late afternoon trading.

According to its official website, JL MAG is “the world’s leading enterprise in the global rare earth permanent magnet industry.” The company is based in Ganzhou, China, where it operates heavy rare earth factories. It also has facilities in Inner Mongolia, the primary production area for light rare earths, as well as in Zhejiang Province, China, known for its rich resources in magnetic material processing and trading.

In the first quarter of this year, JL MAG sales to U.S. clients totaled 122 million yuan (approximately $17 million), representing about 7 percent of its overall revenue, the company said in the statement.

The news comes just hours after trade officials from the United States and China wrapped up two days of negotiations in London.

“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” U.S. Commerce Secretary Howard Lutnick told reporters after the second day of talks late on June 10.

U.S. Secretary of Commerce Howard Lutnick arrives at Lancaster House in London on June 10, 2025, the second day scheduled for trade talks between the United States and China. Toby Melville/Reuters

U.S. negotiators’ comments echoed China’s summary of the negotiations published on the commerce ministry’s website.

Last week, U.S. President Donald Trump and Chinese leader Xi Jinping spoke by phone, which the U.S. president later described as a “very good” conversation. Trump said after the exchange that the issues concerning the supplies of the critical rare earth minerals had been resolved.

There was no mention of rare earth export controls in the Chinese readouts.

China, a monopoly supplier of rare earth, expanded its export control list in April to include seven rare earth metals, forcing traders to apply for special licenses and specify their overseas clients’ intended uses.

The restriction was widely viewed as a retaliation against Trump’s tariff hike on Chinese products, although Beijing stated that it was necessary for national security, calling these magnets dual-use items with both civilian and military applications.

After marathon negotiations in Geneva in May, China and the United States agreed to a 90-day trade truce. Under the agreement, both sides slashed off the tariffs imposed on each other, and Beijing rolled back other retaliatory measures against Washington.

However, there was little indication that the restrictions on rare earth were lifted, resulting in disruptions in supply chains crucial to carmakers, chip manufacturers, and defense contractors worldwide.

On June 11, Trump confirmed that China will supply rare earth as part of the new trade framework pact.

“Our deal with China is done,” the president announced in an all-caps post on Truth Social.

“Full magnets, and any necessary rare earths, will be supplied, up front, by China.”

The deal still awaits approval from Trump and Xi.

China has proposed to accelerate the examination and approval of rare earth exports to the European Union, according to a June 7 statement on the commerce ministry’s website. The commitment was made on June 3 by Chinese Commerce Minister Wang Wentao during a meeting with EU Trade Commissioner Maros Sefcovic in Paris.

The regime, which has long been criticized for using its dominance over rare earths and other strategic minerals as leverage in negotiations, has tightened control over the entire supply chain in recent years.

In December 2024, after the United States expanded its restrictions on China’s access to advanced semiconductor technology, the regime specifically banned the shipment of several processed critical minerals to the United States. Among the targeted materials are gallium, germanium, and antimony, all of which have been designated by the Department of the Interior as critical to U.S. economic and national security.