China will supply full magnets and “any necessary rare earths” upfront to the United States in a deal that is “done” and subject to final approval by the presidents of the two countries, U.S. President Donald Trump said on Wednesday.
“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” Trump posted on Truth Social.
President Trump’s began the post with “OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME.”
The post comes hours after officials said on Tuesday that the U.S. and China reached a framework agreement that could pave the way to China lifting its export curbs on rare earths, subject to approval by both presidents.
U.S. Commerce Secretary Howard Lutnick said that Chinese curbs on exports of rare earths and magnets to the U.S. would be resolved as a “fundamental” part of the framework agreement.
At the beginning of April, China announced it would curb its exports of dysprosium, gadolinium, scandium, terbium, samarium, yttrium, and lutetium. These so-called “heavy” and “medium” rare earth elements are mostly used in automotive applications, including rotors and motors and transmission in electric vehicles and hybrids, as well as in the defense industry in parts of jets, missiles, and drones.
The Chinese export restrictions reverberated through global supply chains and were initially felt in the automotive industry, where major car manufacturing associations warned that production and assembly lines are being idled due to a bottleneck in magnet and rare earth supply.
Following the announcement of a ‘framework’ agreement, oil prices jumped to a seven-week high on Wednesday morning EDT, with the WTI Crude price hitting $66 per barrel and Brent Crude prices rising to $67.88 as of 8:55 a.m.
By Charles Kennedy for Oilprice.com
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