Rare earth permanent magnets' exports in May 2025 hit a new historical low in nearly five years. How will the subsequent exports change? [SMM Analysis]

SMM News on June 20: In May 2025, the exports of rare earth permanent magnets reached 1,238.47 mt, down 52.85% MoM and 74.26% YoY, hitting a new historical low in nearly five years after the record low in April. The export data in April hit a historical low due to the impact of macro policies. Then why did the exports in May still drop by more than half compared to April?

This is mainly because rare earth permanent magnet products share the same customs code: 85051110. Although the controlled items are medium-heavy rare earths containing dysprosium and terbium, for permanent magnet products that do not contain dysprosium and terbium, customs needs to conduct identification. Additionally, for cases where the license issued by the national export control management authority has not been submitted to customs, customs may question whether the products fall within the scope of export control. During the identification or questioning period, customs will not release the relevant export goods. Moreover, there were still four days in April when exports were not subject to control, which also contributed to the decline in exports in May compared to April.

The chart above shows the exports of rare earth permanent magnet products by destination in May. It can be seen that due to export controls, the overall exports are not significant. Vietnam and Germany, ranking at the top, have obtained some export licenses, resulting in a significant increase in exports compared to other countries. Notably, the export data for the US shows that from January to April, the total exports to the US were 2,113.026 mt, making it the second-largest exporter after Germany. However, in May, the export data was only 46.438 mt, even though there were 246.329 mt in April under export controls, down 81.15% MoM. Affected by this, Ford Motor has shut down operations at some of its US factories due to a shortage of rare earth magnets. Rare earth magnets have always been a central issue in Sino-US trade negotiations. With talks held in London in June, China and the US have reached a consensus in principle on economic and trade consultations. Regarding rare earth issues, China fully considers the reasonable needs and concerns of various countries in the civilian sector, reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications in accordance with the law, and will continue to strengthen the review of compliant applications. It is expected that in the long term, with continuous exchanges in Sino-US economic and trade consultations and accelerated approval of export licenses, the exports of rare earth permanent magnets are expected to increase.

》Apply for a Free Trial of SMM Metal Industry Chain Database