News Release: China’s Rare Earth Export Controls Intensify, Posing Challenges to the High-Performance NdFeB Magnet Industry

【China】 Following the implementation of export controls on certain rare earth items in April 2025, China’s Ministry of Commerce (MOFCOM) issued further official announcements on October 9 (MOFCOM and GAC Announcement No. 57 of 2025, and MOFCOM Announcement No. 61 of 2025), significantly expanding the scope of rare earth export restrictions. This move introduces new compliance requirements for the global magnet industry, particularly international buyers and manufacturers reliant on China’s supply chain for high-performance Neodymium Iron Boron (NdFeB) magnets.

Comparative Analysis: Control Scope in April vs. October Announcements

The MOFCOM and GAC Announcement No. 18 of 2025, issued on April 4, established export controls on items related to seven specific medium-to-heavy rare earth elements:

• Samarium (Sm)

• Gadolinium (Gd)

• Terbium (Tb) 

• Dysprosium (Dy)

• Lutetium (Lu)

• Scandium (Sc)

• Yttrium (Y)

  
  

The controlled items covered metals, alloys, oxides, compounds, targets, and specific permanent magnetic materials of these elements (e.g., Samarium Cobalt magnets, NdFeB magnets containing Terbium/Dysprosium).

Key Changes in the October Announcements: Five New Elements and Explicit Downstream Controls

The MOFCOM and GAC Announcement No. 57 of 2025, issued on October 9, adds five more heavy rare earth elements and their related items to the export control list, effective from November 8, 2025:

• Holmium (Ho, 1C909): Including Holmium metal, alloys (e.g., Ho-Cu, Mg-Ho, Ho-Fe alloys), targets (e.g., Ho target, Ho-Cu alloy target), Holmium-containing permanent magnetic materials, and Holmium-containing crystal, magnetocaloric, and magnetostrictive materials.

• Erbium (Er, 1C910): Including Erbium metal, alloys (e.g., Er-Al alloy), targets (e.g., Er target), and Erbium-containing crystal, optical fiber, hydrogen storage, and ceramic materials.

• Thulium (Tm, 1C911): Including Thulium metal, targets (e.g., Tm target), and Thulium-containing crystal and luminescent materials.

• Europium (Eu, 1C912): Including Europium metal, alloys (e.g., Mg-Eu alloy), targets (e.g., Eu target), and Europium-containing luminescent (e.g., phosphors), crystal, and hydrogen absorption materials.

• Ytterbium (Yb, 1C913): Including Ytterbium metal, targets (e.g., Yb target), and Ytterbium-containing crystal, optical fiber, and thermal barrier coating materials.

Furthermore, MOFCOM Announcement No. 61 of 2025 refined the restrictions on Rare Earth Permanent Magnetic Materials and Targets, explicitly listing the following materials and their downstream components under control:

• Rare Earth Permanent Magnetic Materials:

• Samarium Cobalt permanent magnetic materials

• NdFeB permanent magnetic materials containing Terbium

• NdFeB permanent magnetic materials containing Dysprosium

• Parts, components, and assemblies containing the above materials

  
  

In summary, the core of the export control is that permanent magnetic materials (such as high-performance NdFeB and Samarium Cobalt magnets) containing any of the 12 rare earth elements—Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, Yttrium, plus the newly added Holmium, Erbium, Thulium, Europium, and Ytterbium—as well as parts containing these magnets, are strictly controlled and require an export license.

High-Performance Magnets Most Affected

The controls most directly impact high-performance sintered NdFeB magnets. To achieve high coercivity (i.e., temperature stability and resistance to demagnetization), manufacturers must incorporate heavy rare earth elements, primarily Dysprosium (Dy) and Terbium (Tb), into high-performance grades.

Consequently, high-performance grades requiring heavy rare earths, such as the 52H and 48SH series, are the magnet types most affected by the export restrictions.

These high-performance magnets are crucial enablers for high-tech applications, including:

• Drones and Robotics: Tile-shaped NdFeB magnets are key components in the motors used in these sectors.

• High-Efficiency Motors: Used in electric vehicles, wind turbines, and servo systems.

Export License: Key to International Compliance

According to Chinese law, any exporter dealing with the controlled items must apply for a license from the Ministry of Commerce. For international magnet industry players, ensuring their Chinese suppliers possess a valid export license is critical.

Exporters must clearly indicate in the customs declaration remarks column whether the item is a controlled dual-use item and list the corresponding control code. Shipments of controlled items lacking a valid export license will be questioned by customs and may not be cleared for export.

BMAG’s Commitment to Compliance and Export Assurance

BMAG is dedicated to ensuring its customers' magnet orders are compliant and exported smoothly. The key compliance indicators assessed by Chinese Customs include:

• Possession of an Export License: BMAG can assist clients in the application process for export licenses for controlled items.

• Successful Customs Inspection: Ensuring all exported goods meet customs inspection standards.

• Clean Export Record: The company maintains robust compliance systems and a history of clean export practices.

By fully meeting these crucial requirements, BMAG offers global customers a reliable and compliant supply assurance for their magnetic material needs.