MP Materials, the largest rare earth producer in the U.S., has halted all exports to China, citing new Chinese export controls.
On April 17, the company said it would stop selling rare earth materials to China “to help reindustrialize the U.S. mineral supply chain.”
The move comes after the U.S. imposed a combined 145% tariff on Chinese imports-20% in punitive tariffs and an additional 125% in retaliatory tariffs over fentanyl-related concerns. In response, China began imposing a 125% tariff on U.S. goods and placed new restrictions on rare earth exports and American defense firms starting April 4.
MP Materials stated that continuing exports under the 125% tariff “no longer makes commercial sense and does not align with U.S. national interests.” The company added, “Global manufacturers are urgently seeking a stable supply of rare earth magnets and materials. We are in a unique position to meet that demand.”
The suspension aligns with broader U.S. efforts to reduce reliance on China for critical minerals. Rare earth elements are vital for technologies like wind turbines, EV motors, military sensors, optical lasers, and radar systems.
While China accounts for roughly 90% of global rare earth processing, the U.S. still has limited mining and refining capacity. According to the U.S. Geological Survey, 75% of U.S. rare earth imports between 2019 and 2022 came from China.
