China’s exports of rare earth magnets surged to a six-month high in July, signaling a recovery in trade flows of the key minerals critical to electric vehicle production.

Data from the General Administration of Customs released on Wednesday showed exports rose nearly 75% from June to 5,577 metric tons — the strongest monthly performance since January.

The figure was also 5.7% higher than the 5,278 tons shipped in July 2024, broadly in line with analysts’ expectations.

The rebound follows agreements between Beijing, the United States, and Europe to ease restrictions imposed in April, when China tightened export approvals in retaliation for U.S. tariffs. The curbs disrupted global supply chains, leaving automakers outside China facing shortages and, in some cases, temporary production halts.

July’s exports suggest those disruptions have largely eased, though volumes for the year remain below 2024 levels. From January through July, shipments totaled 27,897 tons, down 15% year-on-year, though the decline narrowed from an 18.9% fall in the first half of the year.

Germany remained the top destination in July, importing 1,116 tons, up 46% from June. Shipments to the United States climbed 75.5% month-on-month to 619 tons, representing a 4.8% increase from a year earlier.

Rare earth magnets, used in electric motors, wind turbines, and high-tech devices, are a critical link in the global push toward renewable energy and electrification. China, the world’s dominant producer, accounts for the vast majority of global supply, giving Beijing leverage in geopolitical and trade disputes.

While July’s recovery is seen as a positive sign for manufacturers, analysts caution that the market remains vulnerable to policy changes as trade tensions between China and Western economies continue.