BUSINESS

China Resumes Rare Earth Exports Under Tight Controls as Global Prices Soar

Published: May. 15, 2025 5:10 a.m. GMT+8

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Plastic flakes bound for rare earth magnet recycling. Photo: Bloomberg

Chinese rare earth magnet producers are gradually resuming overseas shipments under a new export license regime, after Beijing tightened controls on mid-to-heavy rare earth exports in April — sending shockwaves through global supply chains and driving up prices in Europe and the United States.

Three leading Chinese rare earth magnet companies confirmed to Caixin that they had recently received export licenses from the Ministry of Commerce, enabling them to resume shipments to customers in Europe and North America. The approvals fall under China’s “one batch, one license” rule, requiring separate permits for each shipment due to varying metal content.

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Chinese rare earth magnet producers have resumed overseas shipments after receiving individual export licenses under stricter controls introduced in April, which require separate permits for each batch.
The new regulations, targeting seven mid-to-heavy rare earths, have led to sharp price increases in Europe and the U.S., with dysprosium and terbium oxide prices rising over 200%.
Global manufacturers, particularly in the EV sector, are experiencing supply disruptions and seeking alternatives due to China's dominant market position and the new export regime.

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Who’s Who

Baotou Tianhe Magnetics Technology Co. Ltd.: Baotou Tianhe Magnetics Technology Co. Ltd., based in Inner Mongolia, recently received export licenses to ship rare earth magnets overseas under China’s new export rules. The company supplies high-performance magnets for electric vehicle components used by global brands such as Volkswagen, Bosch, and Brose.

Baotou INST Magnetic New Material Co. Ltd.: Baotou INST Magnetic New Material Co. Ltd. has received export permits for products containing terbium and dysprosium, two rare earth elements now subject to China’s export controls. The company noted that these licenses are strictly non-transferable. INST’s magnets are widely used in consumer electronics, such as laptops, smartphones, and tablets.

Earth-Panda Advance Magnetic Material Co. Ltd.: Earth-Panda Advance Magnetic Material Co. Ltd. recently had one of its export orders approved under China’s new export control regime. The company specializes in producing sintered neodymium-iron-boron magnets, which are widely used in energy-efficient motors, electric vehicles, and high-end electronics.

Volkswagen: According to the article, Baotou Tianhe Magnetics Technology Co. Ltd. supplies high-performance magnets for electric vehicle components used by global brands such as Volkswagen, as well as Bosch and Brose. These magnets are critical for EV manufacturing and affected by China’s recent export license regime for rare earths.

Bosch: According to the article, Baotou Tianhe Magnetics Technology Co. Ltd., a Chinese rare earth magnet producer, supplies high-performance magnets for electric vehicle (EV) components used by global brands such as Bosch, Volkswagen, and Brose.

Brose: Brose is mentioned in the article as a global brand that uses high-performance magnets supplied by Baotou Tianhe Magnetics Technology Co. Ltd. These magnets are used in electric vehicle (EV) components, indicating Brose’s involvement in the EV industry and its reliance on Chinese rare earth magnet producers for key parts in its products.

Tesla: According to the article, Tesla CEO Elon Musk stated on April 22 that China’s new rare earth export restrictions were affecting production of Tesla’s humanoid robot Optimus. Tesla is now working with Chinese authorities to obtain the necessary export licenses to resume shipments.

Lucid: According to the article, American EV startup Lucid stated that it is seeking alternative suppliers and exploring substitutes to reduce its dependency on Chinese rare earths, following China’s recent restrictions and export license requirements on certain rare earth elements.

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