The People’s Republic imposed export license requirements in April.
Chinese customs authorities have released the second batch of May export data, revealing that exports of the rare earth elements dysprosium and terbium fell to zero. This marks a significant development following the introduction of new export licensing requirements on April 4. Under the updated rules, exporters must obtain licenses to ship these two elements, as well as five other rare earths and their compounds, outside of the country. Exports had already begun to decline in April, but May’s figures reflect the full impact of the licensing regime.
A similar measure was enacted in mid-2023 for the strategic metals gallium and germanium. In the aftermath, exports stopped completely for roughly two months. At that time, Chinese authorities estimated the licensing process would take approximately 45 working days, suggesting a potential timeline for future export license measures.
Chinese dysprosium exports over the last months.
Dysprosium and terbium are crucial for various high-tech industries, including semiconductor manufacturing and chemical processing. However, their most important use lies in the production of neodymium-iron-boron (NdFeB) magnets. While not all NdFeBs contain dysprosium or terbium, these elements are crucial additions in magnets designed for high-performance and high-temperature environments, such as those found in electric vehicle (EV) motors, wind turbines, and advanced defense technologies.
Chinese terbium exports over the last months.
Both elements are so-called heavy rare earths, a subgroup of rare earth elements with particularly limited global supply. Production and refining are heavily concentrated in China and neighboring Myanmar, with only negligible output elsewhere, leaving global industries highly exposed to Chinese export policy shifts.
Photo: seyfi durmaz via Canva