Rare Earth Elements Export Controls
On 4th April 2025, the Ministry of Commerce and the General Administration of Customs of China released Announcement No. 18 of 2025, implementing export control measures on certain medium and heavy rare earth-related items, including Samarium (Sm), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), Lutetium (Lu), Scandium (Sc), and Yttrium (Y).
According to this announcement, products containing these elements can no longer be exported from China without obtaining an export license issued by the Ministry of Commerce.
As Neodymium magnets and SmCo magnets may contain trace amounts of these controlled elements, these new regulations could impact customs clearance processes. We have been informed that such products may undergo additional scrutiny, potentially resulting in delays during export procedures. Since the announcement, we have been closely collaborating with our logistics partners to fully understand the implications and compliance requirements of these regulations.
Since the release of these new export regulations, we have assisted numerous customers in Australia and other countries in adjusting their supply chains to mitigate potential risks. Our measures include, but are not limited to:
- Diversifying supply chains by shifting the production of Neodymium and SmCo magnets to facilities located outside of China.
- Collaborating closely with factories and customs authorities, enabling normal export for most magnet grades.
- Applying for the necessary export licenses from China's Ministry of Commerce on behalf of our clients to further reduce supply chain risks.
If you encounter any issues related to this matter, we will do our utmost to assist you and provide support—please contact us at: sales@magnetop.com.au
We sincerely apologise for any potential delays this may cause to your orders, and we appreciate your understanding.
Update on 30-May-2025:
We’re pleased to share the latest developments regarding both China-based and international magnet sourcing, as Magnetop continues to navigate the evolving export control environment and deliver stable supply chain solutions for our clients.
- In accordance with the latest export control regulations, Magnetop has ensured the smooth and compliant export of most magnet types manufactured in China — including Neodymium, AlNiCo, and Ferrite magnets — through close coordination with Tier One factories and logistics partners.
- For a limited number of magnet types subject to strict export licensing by China’s Ministry of Commerce, Magnetop has, since April, successfully applied the required export licenses on behalf of several clients in full compliance with regulatory requirements — ensuring continued export and avoiding costly supply chain disruptions.
- For magnets that cannot be exported from China at all under the current regulations, including certain Neodymium grades and SmCo magnets, Magnetop has already transitioned sourcing for several clients to qualified manufacturers outside of China. However, please note that production capacity at these overseas facilities is nearing full allocation, and early planning is strongly recommended to ensure supply continuity.
At Magnetop, we are committed to helping our clients maintain a stable and reliable magnetic materials supply chain, even in the face of changing export regulations and global challenges. If you need support, feel free to contact us at sales@magnetop.com.au to discuss how we can assist.