China grants export permits to rare earth giant for US, Europe shipments
The announcement came as trade talks wrapped up in London, with critical minerals high on agenda
A top Chinese rare earth exporter, which hosted President Xi Jinping during a 2019 inspection, said it had obtained export permits for several destinations, including the United States. Investors welcomed the news, sending the company’s shares higher.
JL MAG Rare-Earth said on Wednesday that it had also been granted licenses for Europe and Southeast Asia, and that it would export magnetic materials, components and motor rotors.
“After the export controls imposed on medium and heavy rare earth and related items were announced, the company immediately carried out export declaration work in accordance with relevant rules,” it said on the Shenzhen Stock Exchange’s interactive investor platform.
“The company is not involved in military businesses. We will continue to strictly observe relevant laws and policies.”
Headquartered in Jiangxi, central China, JL MAG is the world’s largest manufacturer and seller of permanent rare earth magnets, its stock exchange filings showed.
The company, dual-listed in Shenzhen and Hong Kong, generated 312 million yuan (US$43.4 million) from exports in the first quarter of 2025, with 122 million yuan attributed to shipments to the US, it said on Wednesday.
JL MAG’s announcement came after Chinese and US officials on Tuesday said both sides had “agreed in principle” to a trade framework – pending approval from their respective leaders – following a second day of talks in London.
Beijing’s export curbs on critical minerals were expected to be a core issue in the negotiations.
China, which supplies most of the world’s medium and heavy rare earth elements, implemented new controls on the critical minerals in April, requiring exporters to obtain permits before shipping the elements out of the country.
The move was regarded as retaliation against US President Donald Trump’s so-called reciprocal tariffs.
The US relies on China for about 70 per cent of its imported rare earth elements, which are crucial for making technological appliances ranging from smartphones to fighter jets, according to analysts previously interviewed by the Post.
After Trump’s long-awaited call to Xi on June 5, Beijing signalled a willingness to revisit its rare earth restrictions over the weekend, as the Ministry of Commerce announced it had approved some export applications.
During his 2019 visit to JL MAG’s Jiangxi premises, Xi stressed the strategic importance of rare earth elements and urged companies to “seize the commanding heights of the industry’s development” through technological innovation, according to state news agency Xinhua.
Investors reacted positively to the company’s announcement on Wednesday. JL MAG’s Shenzhen-listed stocks closed at 24.07 yuan per share, up 7.89 per cent, while its Hong Kong shares rose 1.96 per cent to HK$19.78 ($US2.5).
