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China’s rare earth magnet exports tumble amid new restrictions and classification chaos

by admin June 20, 2025
June 20, 2025
China’s rare earth magnet exports tumble amid new restrictions and classification chaos

Citing export curbs, China’s overseas shipments of rare earth magnets plummeted in May, falling to their lowest levels in over five years and halving from April’s figures.

Beijing said this month that it would speed up its approval process, a concession made after the US and China agreed to dial back trade tensions. 

Customs cautious

In the meantime, however, industry sources say Chinese customs officials have become increasingly cautious about processing rare earth cargoes, according to a Reuters report.

The issue of proper classification is particularly pronounced for rare earth magnets. 

Current coding systems often employ a single, broad category for all magnets, failing to differentiate between the diverse chemical compositions and properties that characterise various rare earth magnet types. 

This lack of granularity in classification can lead to significant challenges in areas such as trade regulation, material tracking, and market analysis. 

According to sources quoted in the report, they emphasised that despite the wide array of rare earth magnet chemistries available and in use, the prevailing one-size-fits-all coding approach creates an incomplete and potentially misleading picture of the market and its specific segments.

China’s dominant position in the global rare earth magnet market, supplying over 90% of the world’s demand, has given it significant leverage over critical industrial sectors. 

Beijing’s ban

In early April, Beijing implemented new export controls on a range of rare earth products, specifically targeting seven medium-to-heavy rare earth elements and certain types of magnets. 

This strategic move has sent shockwaves through international supply chains, which are heavily reliant on these materials.

The affected sectors are foundational to modern economies and national security. 

The automotive industry, for instance, depends on rare earth magnets for electric vehicle motors, hybrid car components, and various electronic systems. 

The aerospace sector utilises these magnets in advanced avionics, control systems, and specialised lightweight alloys.

The semiconductor industry, the backbone of all digital technology, also relies on rare earths for polishing compounds, phosphors for displays, and specialised alloys for integrated circuits. 

Furthermore, the military equipment sector is a major consumer, incorporating rare earth magnets into precision-guided munitions, radar systems, stealth technology, and advanced communication devices. 

The imposition of these restrictions by China underscores the vulnerability of global manufacturing and defense industries to disruptions in the rare earth supply, forcing nations and companies to reassess their dependency and explore alternative sourcing strategies.

Shipments

China’s shipments of rare earth permanent magnets fell by 52.9% from April to 1,238 metric tons last month, marking the lowest monthly level since February 2020.

This data was released on Friday by the General Administration of Customs.

Shipments in May saw a 74% decrease year-on-year. This followed a halving of shipments in April compared to March.

According to the report, due to a lack of clarity regarding Beijing’s export restrictions, customs are delaying several shipments of lower-performance rare earth magnets. 

Source: Reuters

These magnets are typically used in consumer electronics and appliances.

On Thursday, China’s commerce ministry announced the approval of “a certain number” of rare earth export licence applications, without providing further details.

In recent weeks, Chinese rare earth magnet producers JL MAG Rare-Earth and Innuovo Technology have announced securing export licenses for various clients. 

This comes as rare earth magnet exports for January-May saw a 14.5% decline from the previous year, totaling 19,132 tons, the lowest for this period since 2021.

The post China’s rare earth magnet exports tumble amid new restrictions and classification chaos appeared first on Invezz

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