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Rare Earth Magnets
Understanding China’s Rare Earth Export Restrictions and Their Impact on Rare Earth Magnets
The global supply of rare earth magnets is undergoing significant change following new export restrictions introduced by China. As the world’s leading producer and refiner of rare earth elements, China plays a critical role in the availability of materials used to manufacture high-performance magnets. These recent developments are having a direct impact on lead times, logistics, and procurement strategies across multiple industries.
Why Rare Earth Magnets Are Affected
China dominates the global supply chain for rare earth materials, which are essential for manufacturing rare earth magnets, including Neodymium (NdFeB) and Samarium Cobalt (SmCo) magnets.
Since the 4th April 2025, the Chinese Ministry of Commerce has introduced new export controls covering a range of critical Heavy Rare Earth Elements (HREEs). These include:
- Samarium (Sm)
- Gadolinium (Gd)
- Terbium (Tb)
- Dysprosium (Dy)
- Lutetium (Lu)
- Scandium (Sc)
The new regulations also apply to products containing these materials, including certain rare earth magnets. As a result, we are now required to apply for export licenses with each order of all SmCo magnets and high-performance NdFeB magnets.
These restrictions are not an export ban, but an additional level of documentation and government approval required before products can be shipped from China. The new restrictions were introduced to strengthen oversight of strategic resources. However, with the additional administrative requirements, customers can now experience extended lead times when sourcing rare earth magnets globally.
Which Rare Earth Magnets Require Export Licences?
Under the new regulations, export licences are required for:
- All Samarium Cobalt magnets
- High-grade Neodymium magnets, particularly those containing Dysprosium or Terbium
In practical terms, this typically affects Neodymium grades such as N48SH and above, which are designed for high-temperature or high-performance environments.
For businesses using rare earth magnets, this means:
- Additional planning is required for longer lead times
- Material selection is increasingly important
- Where possible, selecting Dy/Tb-free Neodymium grades can help reduce delays
There is now the possibility for certain Neodymium grades to be manufactured without the use of Dysprosium. This means some H and SH grades may now be supplied without requiring an export licence, depending on the exact specification and application.
The Export Licence Process for Rare Earth Magnets
The export licence process for rare earth magnets is now a key part of the supply chain. While it adds complexity, the process is becoming clearer.
A typical application involves:
- Completion of export licence documentation by the end-user
- Submission of paperwork to production facilities in China
- Preparation of supporting documents by the manufacturer
- Review by the local Department of Commerce
- Final approval from the Ministry of Commerce
All end-user information and supporting documentation must be completed in full before the licence application can be processed.
Once submitted, the official processing time for licence approval is currently estimated at 4-6 months or longer. Manufacturing can begin alongside the licence application process, however customers should still factor in the application timeline, plus approximately 14 days shipping time, when planning projects and deliveries.
As a result, early ordering and forward planning are essential when sourcing rare earth magnets.
Shipping Requirements and Freight Planning
A key change in the process is that the freight method must be confirmed at the time of application. This means:
- Shipments cannot be split after submission
- Separate licences are required for different shipping methods (e.g. air and sea)
- Any changes to freight arrangements may require a new application, adding further delays
This makes it more important than ever to define logistics at the point of order when purchasing rare earth magnets.
Customs Checks and Delays
Even for rare earth magnets that do not require a licence, increased scrutiny at customs is now standard.
Recent developments include:
- Routine inspections of all magnetic shipments
- Delays of several weeks at ports
- Expected clearance times of up to 8 weeks
These checks are contributing to longer and less predictable delivery schedules, reinforcing the need for proactive demand planning.
Freight Capacity and Supply Chain Pressures
With shipments delayed at customs, there is increasing pressure on global freight networks. This is leading to:
- Reduced availability of vessel and air cargo space
- Potential increases in shipping costs
- Further delays once goods are cleared for dispatch
As demand for rare earth magnets continues to grow, particularly in sectors such as electric vehicles, renewable energy, and advanced electronics, these pressures are expected to remain.
Navigating the Changing Rare Earth Magnet Market
These evolving regulations highlight the importance of working with an experienced and proactive supplier. At Newland Magnetics, we are closely monitoring developments and working with our global partners to minimise disruption wherever possible.
Key recommendations for customers include:
- Allowing additional lead time for all rare earth magnet orders
- Considering alternative grades where suitable
- Planning freight requirements in advance
- Exploring stockholding or scheduled supply options
By staying informed and planning ahead, businesses can help reduce the disruption and maintain continuity of supply in an increasingly complex rare earth magnet market.
The introduction of export restrictions on rare earth materials marks a significant shift in the global supply of rare earth magnets. While these changes present challenges, they also emphasise the importance of strategic sourcing, forward planning, and strong supply chain partnerships.
Newland Magnetics remains committed to supporting our customers through these changes, ensuring reliable access to high-quality rare earth magnets while navigating an increasingly complex global market.
For further questions, or to enquire about our magnets, please contact our team.