SMM May 24 News: In April 2025, the exports of rare earth permanent magnets reached 2,627 mt, down 51% MoM and 45% YoY, hitting a record low in the past five years. It is reported that the significant decline in exports of rare earth permanent magnets in April was mainly due to the impact of macro front policies.
Since April 4, 2025, the state has announced a decision to implement export controls on seven categories of medium-heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Among these, dysprosium and terbium are essential for high-performance NdFeB permanent magnet materials, imposing restrictions on the export of high-performance magnetic materials. Export licenses are required for approval before they can be exported. Although the export of low-performance magnetic materials is not restricted, the customs codes for high-performance and low-performance NdFeB permanent magnets are the same. Therefore, even if they do not contain medium-heavy rare earths such as dysprosium and terbium, the content of these elements must be provided for customs inspection and detection. This measure has made the export process for low-performance magnetic materials cumbersome, extended the trade cycle, and prolonged the payment collection cycle for enterprise orders, affecting their order-taking situation and leading to a sharp decline in the exports of rare earth permanent magnets.
As of now, at least six magnetic material enterprises have completed the approval of their export licenses and can export high-performance NdFeB permanent magnets. The export destinations are mainly concentrated in Europe, Southeast Asia, Japan, and South Korea. Regarding export licenses, the approval process for rare earth export licenses of several publicly listed firms is continuously progressing.
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