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The Chinese Ministry of Commerce has officially announced that new export controls will take effect starting April 4, 2025, targeting neodymium iron boron NdFeB magnets containing two key rare earth elements: Terbium (Tb) and Dysprosium (Dy). Issued under Policy No. 2025-18, the new regulation will require exporters to obtain licenses before shipping products that include these elements overseas.
These materials are commonly used in high-performance magnetic applications, especially those requiring high thermal stability, such as electric vehicles, wind turbines, and defense systems. As a result, this policy is expected to have a ripple effect on global supply chains.
Manufacturers and international buyers are now preparing for possible delays and cost increases, as the new licensing system may slow customs clearance and reduce available inventory in the short term. Exporters are also facing increased administrative burdens, further contributing to potential disruptions in supply and fulfillment timelines.
But not all magnet products are affected by the new regulations. Industry insiders said that neodymium iron boron magnets with extremely low or even negligible content of terbium or dysprosium elements are still not subject to these controls, which brings some relief to manufacturers and importers.
Some major Chinese permanent magnet suppliers confirmed that clients with current specifications excluding Tb and Dy are not impacted. “This is good news for many of our existing customers,” the spokesperson said. “But we are strongly advising everyone to act quickly, as the overall market price for rare earth magnets is expected to rise due to tightening global supply.”
Many suppliers further reminded that lead times may increase as global buyers rush to place orders ahead of potential shortages. Customers are encouraged to confirm their orders before April 15 to secure current pricing and availability.
As the world’s largest producer and exporter of rare earth materials, China’s policy changes carry significant global implications. The move is viewed by analysts as part of a broader strategy to safeguard strategic resources and promote domestic high-tech industries.
Importers and partners worldwide are advised to stay informed about the new regulations and evaluate their sourcing strategies accordingly. Companies dealing in high grade performance magnets are especially urged to consult their suppliers promptly and assess any potential impact on production schedules or pricing.