Since April 2025, China has required export licences for seven medium and heavy rare earth elements (samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium), and for magnets that depend on them [1], [3]. A wider set of measures announced in October 2025 was suspended for one year under a US–China truce. That suspension runs out in November 2026, and whether it is extended, partly reinstated or fully reinstated is still open [3], so check the current news before you plan.
What it has meant in practice
Licensing has been uneven. Chinese magnet exports fell sharply in spring 2025, then recovered once controls eased, and analysts report that some markets, Europe among them, were supplied far better than others [1], [2]. The real pinch point is not mining but processing and qualification, and China handles the large majority of heavy rare earth processing [2], [3]. Small quantities of dysprosium-based materials were reported to dry up even when headline export figures looked healthy [2].
Who is exposed, and who is not
Grades that rely on dysprosium or terbium (high-temperature neodymium) and samarium cobalt feel it first. Standard neodymium grades used at moderate temperatures need little or no heavy rare earth, and ferrite and AlNiCo contain no rare earths of this kind at all.
What to do about it
Ask for lead time and licence status in every quote, and order earlier for high-temperature neodymium and SmCo. Specify the temperature grade you really need, not the highest one (see our guide on choosing a material by temperature). Qualify an alternative grade or a second source before you need it. Where the force and space allow, consider ferrite. And if you tell us your temperature range and volumes, we will tell you which grades carry supply risk right now.
References
[1] CSIS. (2026). Rare earth export restrictions one year later. Center for Strategic and International Studies. https://www.csis.org/analysis/rare-earth-export-restrictions-one-year-later
[2] S&P Global. (2026, January 27). Rare earth supply bottlenecks set to persist in 2026. https://www.spglobal.com/energy/en/news-research/latest-news/metals/012726-rare-earth-supply-bottlenecks-set-to-persist-in-2026
[3] Tech Times. (2026, October 2). Rare earth magnets: China's November 10 deadline and the US gap money can't close. https://www.techtimes.com/articles/328392/20261002/rare-earth-magnets-chinas-november-10-deadline-us-gap-money-cant-close.htm