Export restrictions: China loads the rare earth cannons
China today announced the implementation of export controls on a variety of rare earth materials, including so-called medium and heavy rare earths, as well as high-performance permanent magnets (e.g., NdFeB) containing dysprosium and/or terbium.
While aimed at the global export market broadly, the announcement comes in response to sweeping tariffs by the US that impose a 54% levy on most goods coming from China.
As with gallium, germanium and antimony, the new regulations are not an outright ban on global exports but signal Beijing is ready to pull the trigger on some regions, industries or manufacturers.
The move follows the proposal of new regulations in February by China aimed at tightening its grip on the global rare earth industry.
If the US were to roll back its tariffs on China, we see scope for these restrictions to be lifted but there will be irreversible damage.
As in previous instances, Beijing’s latest weaponization of rare earths will have long lasting impacts on the demand side and will galvanize ongoing efforts to develop alternative mine-to-magnet supply chains outside China.
As we explained to Reuters: In the near-term, importers are holding their breath waiting to see if they will be impacted. The cannons have been loaded but so far no one knows where they’re aimed or how big China’s (cannon) balls are.
Meet with alternative suppliers
Meet with alternative rare earth miners and magnet producers in Toronto in September 2025 for Rare Earth Mines, Magnets & Motors 2025 where we’ll explore this topic further with leading market participants and industry experts.
The two-day event will bring together business and technical leaders from across the global mine-to-OEM supply chain for high caliber discussions and networking at a 5-star venue.
Key themes of this year’s conference will include robotics, automation, advanced air mobility, and the emerging mine-to-magnet supply chain coming together upstream.
Special guest: Steve Wozniak, co-founder of Apple
More information: www.adamasevent.com
