China Rare Earth Export Controls Tighten Global Tech Flows

China Rare Earth

China rare earth export controls just tightened across mining, processing, magnets, and recycling. The China rare earth export controls require prior approval for technology transfers and technical services. As a result, the China rare earth export controls reshape risks for EVs, wind turbines, and defense supply chains.

What the rules cover

Beijing now restricts technology for mining, smelting and separation, and metal smelting. The rules also cover magnetic material manufacturing and secondary rare earth recycling. Authorities named samarium-cobalt, neodymium-iron-boron, and cerium magnet technologies. The measures include assembly, commissioning, maintenance, and upgrade services. Chinese entities also need approval before assisting foreign rare earth activities. Violations face penalties under the new regime.

Global impacts and industry response

The policy targets unauthorized tech transfer and national security risks. China previously limited exports of several medium and heavy rare earths. The latest move extends controls to know-how and services. Market participants expect stricter IP protection and slower overseas projects. Meanwhile, the US and allies keep building non-China supply chains. However, technology remains the key bottleneck outside China. China holds major reserves and advanced processing capabilities. That gap will challenge rapid diversification efforts.

China rare earth export controls may raise compliance costs for JVs. They could delay new NdFeB magnet lines outside China. Companies will likely pivot toward recycling and substitution. As a result, buyers may sign longer contracts with diversified suppliers. Governments may expand funding for separation and metals plants. Price volatility could rise if inventories tighten into 2026.

The Metalnomist Commentary

China just shifted leverage from material tons to proprietary process IP. Expect accelerated Western investments in separation, metalmaking, and magnet plants, plus stricter trade compliance. Winners will pair secure ore with in-house processing know-how and robust recycling.