China’s rare earth magnet exports have sharply declined in recent months, following the government’s decision to impose export controls on specific rare earth elements and related products. The new restrictions apply to elements including terbium and dysprosium, which are used in some, but not all, neodymium-iron-boron (NdFeB) magnets. These particular elements are crucial additions to magnets that must maintain high performance and stability under elevated temperatures, such as those used in electric vehicle motors and wind turbines.
However, customs authorities in Beijing currently use a single tariff code for all rare earth magnets, regardless of whether they contain the restricted materials. This lack of differentiation has caused widespread delays in shipments, according to industry experts. According to data from the customs authorities, China exported just 1,238 tons of rare earth magnets in May, marking the lowest monthly volume since early 2020 and representing a 74% year-over-year decrease. Exports in April had already fallen by half compared to March. While Chinese authorities have recently issued a limited number of export licenses, the overall supply remains significantly constrained.
Exports of rare earth magnets from China over the last months.
The top three destinations for Chinese rare earth magnet exports in May were Vietnam (235 tons), Germany (209 tons), and India (150 tons). In contrast, only 46 tons were shipped to the United States, down from 689 tons during the same month in the previous year. This marks a year-on-year decline of approximately 93 percent.
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