JLM Secures Rare Earth Magnet Export Permits to US

Jinli Magnet

Chinese Manufacturer Gains Approval Amid Tight Export Controls

Jinli Magnet (JLM), one of China’s major magnet producers, has obtained export permits for magnets containing medium and heavy rare earths to the US. The company applied for permits following Beijing’s April 4 implementation of export controls on certain rare earth products. While volumes were undisclosed, approvals also cover shipments to Europe and Southeast Asia.

JLM, which exports magnetic materials, components, and motor rotors, reported export revenue of 312mn yuan ($43.3mn) in Q1 2025, with the US accounting for 122mn yuan. The firm stated it will continue applying for permits in compliance with Chinese regulations, only proceeding with shipments once approvals are granted.

Impact on US Automakers and Global Supply Chains

Market participants report that US automakers GM, Ford, and Stellantis received permits for permanent magnets containing restricted rare earths, enabling them to advance electric vehicle projects worth billions of dollars. Several Chinese producers also secured permits for European and Vietnamese automotive orders.

Despite the easing, China’s magnet exports to the US will remain limited to essential manufacturing needs to safeguard strategic resources. Some permits are valid for only 3–6 months, suggesting continued supply uncertainty. April’s export controls caused a sharp drop in shipments — only 246t reached the US, the lowest since February 2020 — and tightened global supply, driving spot prices higher outside China.

The Metalnomist Commentary

JLM’s export approval underscores China’s strategic balancing act between resource security and global supply chain stability. While this move offers short-term relief to US and European automakers, the short validity of permits signals ongoing supply risks. The industry should expect continued volatility in rare earth magnet availability and pricing.