China has announced tighter export controls on rare earths, a critical component in electric vehicle motors and other high-tech products, citing national security and economic interests. The new rules will require foreign exporters dealing in rare earth products from China to obtain an export licence from the Ministry of Commerce.
According to the ministry, exports of technologies related to rare earth mining, processing, magnet manufacturing, and mineral recycling will also be prohibited without special approval. “The measures are necessary to safeguard China’s national interests and industrial security,” the ministry said in a statement.
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Rare earths such as neodymium, praseodymium, dysprosium, and terbium are essential for manufacturing high-performance permanent magnets used in electric vehicle motors. These metals enable greater power density and heat resistance, improving the efficiency and range of EVs. They are also found in electronics, lasers, and other advanced technologies.
The move follows previous restrictions earlier this year. In April, China imposed an export ban on six of the 17 rare earth elements amid a tariff dispute with the United States, though the ban was later eased in June under stricter conditions. The new licensing regime, however, signals a more systematic approach to regulating exports.
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A study by the Supply Chain Intelligence Institute Austria (ASCII) underscores the extent of global reliance on China. The country controls about 58% of global rare earth mining and 92% of manufacturing for permanent magnet products used in electric cars, wind turbines, and robotics.
Analysts say the tighter export rules could further strain Western supply chains and complicate efforts by automakers in Europe and the United States to secure key materials for the transition to electric mobility.
Source: reuters.com, mofcom.gov.cn