What’s going on?

The US and China reached a new agreement on rare earth minerals.

What does this mean?

• China has long restricted exports of several key rare earth minerals to the US, but that seems to be changing; China has now agreed to increase shipments of rare earths to the US (even without setting an expiration date), likely in exchange for more favorable trade terms.
• In parallel, President Trump is pushing to finalize deals with 10 other trade partners before July 9, when new tariffs are set to take effect. It’s expected that the earlier a deal is struck, the better the terms are likely to be.

Why should I care?

The bigger picture: Green is back

• The agreement is expected to help restore supply chains for American firms.
• Since rare earths are critical to electric vehicles, solar panels, and military jets, this move puts the green transition back on track.
• At the same time, EV companies aren’t putting all their bets on this deal, they’re also strengthening ties with mining firms in Australia, Canada, and Africa as a backup.

Zooming out: Missing you, export

• China’s factory profits fell 9% between April and May – the sharpest drop since October – despite government stimulus efforts. This likely explains the renewed push to revive the export sector.

Content source: 
1. Finimize (2025) Medium Rare. https://finimize.com/content/medium-rare [Accessed on Jun 28, 2025]