The export controls introduced in April for strategically important heavy rare earth elements remain in effect. All exports of the affected materials are subject to a two-stage licensing process involving both provincial authorities and the Chinese Ministry of Commerce. In practice, the processing time often reaches the official limit of 45 working days.
Since April, the licensing process has become established across most production sites and among customers. While initial backlogs have largely been cleared, bottlenecks have now shifted to the production stage where production is running at full capacity.
Even for products not containing heavy rare earth elements, extended lead times must be expected. These products now require an ICP analysis to verify composition for export, which adds an additional 2 weeks to the timeline. At the same time, customs authorities have intensified inspections, potentially causing further delays.
Impact and Recommendations The process of obtaining export licenses is complex, time-consuming, and cost-intensive. We therefore strongly recommend:
- Placing orders early to secure future supply
- Building safety stocks (which the Chinese government is trying to prevent)
- Exploring HRE-free product alternatives
Please contact your account manager to discuss switching to HRE-free materials and to ensure your supply needs are covered.
Armin Sejfic Head of Engineering
China Tightens Control Over Rare Earth Production Policy
China has introduced new provisional measures to strengthen oversight of its rare earth industry. The regulations, jointly issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Natural Resources, aim to ensure more rigorous control over mining, smelting, and separation activities.
Key Measures Include:
- Total volume control over the mining and processing of rare earths,
- including imported and secondary sources.
- Mandatory product flow records and traceability systems for all rare earth enterprises.
- Monthly reporting of production volumes and product flows.
- Enhanced supervision by local governments.
- Enterprises violating these rules may face reduced production quotas in the following year.
Following the announcement, most rare earth separation plants forecast that PrNd-related products still have room to climb, driven by expectations of tighter supply and stricter regulatory enforcement.