July 7 (Reuters) - China's export restrictions on rare earths brought parts of the global auto supply chain to a halt and U.S. President Donald Trump to the negotiating table. But at home, they're a big headache for companies already struggling with a slow economy.

The new restrictions will limit exports of technologies crucial for producing EV batteries and processing their raw materials.

Following talks with the US thought to include reductions in critical mineral export restrictions, China reports 60 per cent jump in June shipments.

Exports were 60% higher than the 4,829 tons exported in June 2024. Cumulatively over the first six months of this year, China exported 32,569.2 tons of rare earths versus 29,095.2 tons over the same period last year, customs data showed.

China's rare-earth exports expanded significantly in June, maintaining a growth momentum from the previous month and compared with the same period last year, according to data released by the General Administration of Customs (GAC) on Monday.

When China began its crackdown on the sector some fifteen years ago, there were hundreds of miners and processors. By 2013 ten producers controlled almost all mining. Today, there are just two state-owned giants: China Rare Earth Group and China Northern Rare Earth Group High-Tech (600111.SS).

The deal would see the Defense Department take a 15% stake in MP Materials and spend billions of dollars investing in the company and purchasing its output.

Dust and groundwater contaminated with heavy metals and radioactive chemicals pose a health threat that the authorities have been trying to address for years.

China’s dominance in the rare earth supply chain has historically given it leverage over global markets. Its recent export restrictions, however, are having a

MP Materials has announced plans to expand rare earth mining and processing operations as Washington seeks to end its dependence on Chinese supplies.