(MENAFN) In September, exports of rare earth magnets from China to the United States saw a significant decline, halting months of recovery.

This drop coincides with Washington’s ongoing efforts to diversify its supply chains and navigate a growing trade dispute with Beijing.

According to data released by China’s General Administration of Customs on Monday, exports of rare earth magnets fell by 28.7% from August, totaling 420.5 tons. Year-on-year, exports also decreased by approximately 30%.

This decline marks the second consecutive monthly drop after a brief recovery that began in June, following China's pledge to accelerate rare earth export permits during trade talks with US officials in London.

China remains the leading producer of rare earths, supplying over 90% of the world’s total output.

As the US seeks to reduce its reliance on these critical materials, especially rare earths, it faces challenges due to Beijing's control over the market.

Rare earth magnets are essential in various technologies, including electronics, defense systems, renewable energy, and electric vehicles.

Earlier this year, Beijing imposed restrictions that led to shortages and supply chain disruptions across multiple industries.

In September, overall rare earth magnet shipments from China dropped 6.1% compared to the previous month.

In response, the US has been focusing on decreasing its dependence on China’s rare earth exports by investing in local manufacturing and acquiring stakes in related companies.

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