What's Happening?
China has tightened export controls on seven rare earth elements (REEs)—samarium, gadolinium, lutetium, terbium, dysprosium, scandium, and yttrium. These 7 special metals are key to tech like smartphones, electric cars, and wind turbines because of their magnetic and glowing properties.
Why It Matters?
Exporters now need special licenses, impacting the U.S., EU, and Japan. China’s also banned sharing tech for mining and making rare earth magnets, aiming to protect its lead in these critical materials. This could mean shortages and higher prices for things like headphones, MRI scans, and green energy tech.
Seven Elements and Applications of the Restricted REEs
| ELEMENT | Key Applications |
|---|---|
| SAMARIUM (Sm) | Small motors, EVs, headphones, cancer therapy (Sm-153), lasers, permanent magnets (SmCo), organic synthesis |
| GADOLINIUM (Gd) | MRI contrast agents, nuclear reactor control rods, luminescent phosphors |
| LUTETIUM (Lu) | LED phosphors, catalysts, lasers, radiotherapy (Lu-177), petrochemical cracking, dating geological samples |
| TERBIUM (Tb) | Green phosphors, sonar systems, actuators, magnetic data storage |
| DYSPROSIUM (Dy) | High-performance magnets (EVs, wind turbines), high-intensity lighting, ethanol dehydration, anti-counterfeit inks (Euro banknotes) |
| SCANDIUM (Sc) | Strengthening aluminum/magnesium alloys, lighting, oil refining, color in mercury vapor lamps |
| YTTRIUM (Y) | Cell phones, large displays, ceramics, microwave filters, radiotherapy (Y-90), lasers, gemstones (YAG) |
Export and Technology Restrictions
Export Controls
Exporters must now apply for special licenses to export the restricted REEs. This policy is aimed at protecting China’s national interests and security while reinforcing its dominance in the global REE supply chain.
Exporters must clearly identify whether their goods are controlled items when declaring them to customs. If an item is controlled, its dual-use export control code should be listed in the remarks section of the declaration. If this information is missing or unclear, customs officials may question the declaration, and the goods will not be released until the issue is resolved.
Technology Controls
China has also banned the export of technologies related to the extraction, separation, and manufacturing of rare earth magnets, a critical step in the REE value chain. This is intended to preserve China’s technological edge in processing these materials.
When does it apply
The export restriction takes effect from the date of publication, April 4, 2025
APA Offerings
APA supports global clients by offering:
• Regulatory analysis of REE markets
• Supplier liaison services
• Strategy development for navigating REE restrictions
This guidance is particularly crucial for manufacturers and governments as they adapt to the evolving landscape of rare earth availability and trade.
For service inquiries, please reach out at: compliance@apaengineering.com
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