Navigating Export Controls on Heavy Rare Earth Magnets

China’s new export controls on heavy rare earths (HREEs) have reshaped the magnet industry in 2025, creating significant disruption across global supply chains. Although licensing timelines are starting to improve, substantial complexity remains. Here at Magnet Applications, we help customers navigate these challenges through compliance support, alternative magnet solutions, stocked materials, and innovative engineering.

What You’ll Learn

• Why export controls on HREEs were introduced
• Which magnet types and grades are affected
• How supply chains were disrupted
• Why even HREE-free magnets encountered delays
• Signs of improving licensing timelines and clarity
• How Magnet Applications helps customers navigate these challenges
  
  

Are Export Controls on Heavy Rare Earths Being Processed Faster and with Greater Clarity?

Yes—progress is emerging, but significant challenges remain. China has begun processing export licenses for heavy rare earth elements (HREEs) and finished magnets more quickly than earlier in 2025. However, global manufacturers still face considerable complexity, costs, and operational uncertainty.

Why Did China Introduce Export Controls on Heavy Rare Earths?

Heavy rare earth elements are critical raw materials used in high-performance magnets essential for modern technologies—like electric vehicles, wind turbines, and electronics.

Earlier this year, China’s Ministry of Commerce introduced new export licensing requirements for:

• Heavy rare earth elements (HREEs)
• Certain finished magnets, including specific high-coercivity grades of neodymium-iron-boron (NdFeB) and samarium cobalt (SmCo) magnets

The policy aims to manage strategic resources and maintain oversight of materials crucial for advanced industries.

How Have These Controls Disrupted Magnet Supply Chains?

Although intended to regulate specific materials, the new licensing requirements have had broader consequences across the global magnetics supply chain:

• Carriers began refusing shipments containing magnet-related materials—even those without HREEs—due to fears of customs delays.
• Manufacturers faced longer lead times and higher costs as they navigated complex paperwork and customs reviews.
• Industries from automotive to medical devices experienced uncertainty, complicating production and procurement planning.

Why Were HREE-Free Magnets Also Affected?

One unintended outcome was that even lower-grade magnets—designed to be HREE-free—were caught in regulatory delays. For example:

• Grades like N42SH and below typically do not contain heavy rare earths.
• However, China’s efficient recycling processes mean trace levels of HREEs can sometimes be present even in magnets not designed to use them.

As a result, manufacturers often apply for export licenses proactively—even when technically not required—to avoid the risk of shipment rejection or customs delays.

At Magnet Applications, we received numerous export licenses for shipments of magnets that normally wouldn’t have required them. This cautious approach became essential to keep materials moving through the supply chain.

Is the Situation Improving for HREE Export Licenses?

Encouraging signs have emerged in recent months:

• Export licenses are being processed more rapidly. Where approvals once took several months, some are now granted in significantly shorter timeframes.
• Regulatory authorities are gaining a clearer understanding of different magnet grades and their specific applications, helping reduce unnecessary delays.
• Industry engagement is fostering dialogue on how to streamline processes and minimize unintended impacts on legitimate trade.

Despite improvements, companies continue to take a “compliance first” approach, often seeking licenses for shipments just in case.

How Does Magnet Applications Help Customers Navigate Export Controls?

While challenges remain, Magnet Applications is committed to helping customers navigate the evolving landscape of export controls. Here’s how:

Compliance Paperwork Support

Navigating export licensing paperwork can be time-consuming and complicated. Our team guides customers through the entire export documentation process:

• We handle all paperwork except the portions customers must complete themselves.
• We provide clear instructions and templates for export applications.
• We proactively follow up to prevent delays or incomplete submissions.
• Even for magnet materials that technically require no license, we gather backup documentation—like chemical certifications—to ensure shipments aren’t held up unexpectedly.

Alternate Magnet Grades

Customers concerned about export restrictions on specific magnet grades often benefit from license-free alternatives:

• Grades up to around N45SH generally do not require a license.
• Higher grades or materials like samarium cobalt typically do require licensing.

We have an extensive internal network of experts who help customers navigate a turbulent and shifting landscape. Our team actively educates customers on license-free alternatives and long-term planning strategies to reduce risk and ensure supply continuity.

Stocking Programs (MagVault)

To help customers avoid delays, Magnet Applications offers MagVault, our program for stocking key license-free grades:

• Keeps essential materials on hand for faster delivery.
• Reduces lead times and mitigates risks tied to sudden export restrictions or regulatory changes.

Custom Engineering Solutions

Engineering can often be the key to navigating export controls.

• We can shift magnet production into assemblies, which often avoids the scrutiny placed on raw magnet exports.
• Instead of selling a single magnet, we can produce a rotating assembly as a value-added product.
• This approach aligns with China’s strategy of promoting higher-value exports rather than raw materials and helps customers minimize licensing risks.

Real-World Examples of How We’ve Helped

Our team has helped numerous customers evaluate alternatives and manage export-related challenges:

• Replacing Samarium Cobalt: One customer explored substituting Alnico for samarium cobalt to avoid licensing requirements. However, testing confirmed that Alnico could not deliver the required magnetic performance for their application.
• Switching from Compression Bonded Neodymium to Ferrite: Another customer considered switching from compression bonded NdFeB magnets to ferrite magnets to reduce export risks. Analysis showed this would have required doubling the magnet thickness to achieve equivalent flux density—a solution that was not feasible due to space constraints in their design.
• Injection Molded Magnets: Some customers have adopted strategies using low-coercivity neodymium grades that are free of heavy rare earths like dysprosium or terbium. By magnetizing parts after molding, they avoid licensing tied to high-coercivity grades containing these critical elements.

Why Clear, Material-Specific Regulations Matter

While improvements are underway, the global magnetics industry continues to call for:

• Transparent, material-specific guidelines rather than broad, blanket controls.
• Efficient communication channels between regulators, manufacturers, and logistics providers.
• Balanced policies that protect strategic resources without creating undue barriers for legitimate, non-sensitive trade.

Clearer regulations help prevent supply chain interruptions, reduce costs, and support industries critical to innovation, sustainability, and global economic growth.

The Path Forward

While challenges remain, recent developments suggest a more stable environment may be emerging for the export of heavy rare earths and magnets. Faster license processing and greater regulatory understanding are welcome trends. However, true confidence will depend on consistent, transparent rules that industry can plan around.

At Magnet Applications, we remain committed to proactive compliance, close monitoring of regulatory changes, and helping our customers navigate this evolving landscape through expertise, innovative solutions, and personal support.

How Magnet Applications Can Help You

• Export compliance support
• Guidance on license-free magnet alternatives
• Stocking programs to reduce lead times
• Custom engineering solutions to avoid export scrutiny

If you’re navigating the complexities of magnet sourcing under today’s export controls, we’re here to help.