China’s 2025 Auto Surge Boosts EV Exports, Rare Earth Demand

China closed 2025 with record vehicle production and rising electric-vehicle exports, even as December volumes softened, according to MIIT and CAAM data.

Full-year output reached 34.53 million vehicles, up 10.4% year-on-year, with sales of 34.40 million (+9.4%). New Energy Vehicles (NEVs) drove the gains: production hit 16.63 million (+29.0%) and sales 16.49 million (+28.2%), accounting for 47.9% of annual new vehicle sales.

December showed mixed signals. Total monthly sales fell 6.2% to 3.27 million units, led by an 8.7% decline in passenger car sales, while commercial vehicle demand rose 15.3%. NEVs remained resilient in December, up 7.2% to 1.71 million units and representing 52.3% of new vehicle sales that month.

Exports were a major accelerant: December exports reached 753,000 vehicles (+49.2%), with NEV exports at 300,000 (+124.8%). Full-year exports totaled 7.10 million (+21.1%), and NEV exports more than doubled to 2.62 million (+103.7%).

The EV-led expansion is increasing demand for rare earth permanent magnets, battery materials and power electronics, pushing embedded critical minerals into global supply chains and raising strategic supply concerns.