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China's exports of %RareEearthMetals, minerals and magnets to the U.S. fell 80% in May as Beijing tightened controls on overseas sales.

The sharp decline in shipments to the U.S. is significant as rare-earth metals are critical components of advanced technologies from smartphones to electric vehicles, as well as solar panels and military equipment such as fighter jets and missile systems.

Rare-earth metals have become a major point of contention between the U.S. and China in their ongoing trade dispute and tariffs between the two countries.

Total export volumes of rare-earth magnets from China fell 80% in May from a year earlier, according to Chinese customs data.

That was the biggest percentage decline on record. Exports had fallen 45% in April year-over-year as U.S. President Donald Trump unveiled his tariff regime.

Publicly traded companies that are involved directly in the extraction and processing of rare-earth metals include %MPMaterials (NYSE: $MP ), American Rare Earths (ASX:ARR), and %USARareEarth (NASDAQ: $USAR ).

Despite a 90-day truce in its trade war with the U.S., China appears to be maintaining tight control over its rare-earth exports, preserving a key source of leverage in future negotiations.

The situation has left American businesses scrambling to find alternatives for the rare-earth metals, minerals and magnets they need to make their products.

There's currently little evidence that China is removing its newly imposed rare-earth export controls. If anything, Chinese authorities appear to be strengthening those controls.

China has typically accounted for 80% of all rare-earth metals imported by the U.S., according to American government data.

Globally, China is the world's largest producer of rare-earth metals, minerals and magnets, accounting for 70% of annual mine production, which is estimated at 210,000 tonnes a year.