China’s Rare Earth Export License Requirements (2025) Explained

In April 2025, China’s Rare Earth Export License Requirements came into full effect with export controls over seven rare earth elements, fundamentally altering the global supply chain for these critical materials. The Ministry of Commerce (MOFCOM) and General Administration of Customs jointly issued Announcement No. 18 of 2025, requiring export licenses for all shipments of these seven rare earth elements.

The export controls specifically targeted seven medium and heavy rare earth elements:

1. Samarium: used in NdFeB permanent magnets and defense applications
2. Gadolinium: used in MRI machines and other electronic components
3. Terbium: used in green phosphors and magneto-optical devices
4. Dysprosium: used for high-temperature permanent magnets in electric vehicles
5. Lutetium: used in specialised medical imaging and research applications
6. Scandium: used in aerospace alloys and solid oxide fuel cells
7. Yttrium: used in lasers, superconductors, and LED phosphors

The export controls apply not only to the pure elements but also to their intermediate products such as oxides, alloys, compounds, mixtures, and final products such as high-performance rare earth permanent magnets.

The licensing requirements represent China’s strategic use of its rare earth monopoly as a negotiating tool in broader geopolitical and trade discussions, while maintaining the flexibility to adjust export policies based on evolving international relationships.

China’s Rare Earth Export License Requirements Application Process

• Chinese exporters must submit documentation to MOFCOM to obtain export licenses. The process requires six sets of documents, including detailed end-user profiles and intended application verification. Western companies must provide business information, including production details, customer lists, operational data, employee information, and end-use specifications.
• The review period is 45 working days from submission (maybe longer for overseas counterparties). The review involves multiple government agencies, such as MOFCOM, the General Administration of Customs, and the State Administration for Science, Technology and Industry for National Defense.

Licensing Structure

China operates under a “one batch, one license” system, requiring separate applications for each shipment with non-reusable permits. The system includes three types of licenses :

1. Individual Licenses: Required for most exports, particularly to new customers or sensitive destinations.
2. General Licenses: Available to established exporters with proven compliance systems and stable customer relationships.
3. Registration-based Certificates: For specific circumstances such as re-exports for repair or testing.

The licensing system includes provisions for post-export monitoring and verification. End-users must commit not to transfer materials to third parties without MOFCOM permission, and Chinese authorities may conduct verification checks to ensure compliance with stated end-uses. Companies found in violation face potential inclusion on watch lists or control lists, affecting future licensing eligibility.

To view GDC market research reports click here

• Sintered NdFeB permanent magnet industry research report
• Bonded NdFeB permanent magnet industry research report
• Hot-pressed NdFeB permanent magnet industry research report
• SmCo permanent magnet industry research report
• Ferrite permanent magnet industry research report
• AlNi Co permanent magnet industry research report

China’s Rare Earth Export License Requirements and Recent Industry Developments

At least six rare earth permanent magnet companies, including Beijing Zhong Ke San Huan High-Tech Co., Ltd, Ningbo Yunsheng Co., Ltd, and Yantai Zhenghai Magnetic Material Co., Ltd received export licenses in May 2025. JL MAG Rare-Earth Co., Ltd announced in June 2025 that it had obtained licenses for exporting medium and heavy rare earth products to the United States, Europe, and Southeast Asia.

Implications for China’s Rare Earth Export License Requirements in the global market place

As China controls 90% of global rare earth processing capacity and accounts for over 61% of global rare earth mineral production . Between 2020 and 2023, China supplied 70% of all rare earth compounds and metals imported into the United States. This dominance provides Beijing with leverage in trade negotiations and technology transfer discussions.

The export controls have created substantial disruptions in the global rare earth supply chain, affecting industries such as automotive, aerospace, semiconductor , and national defense. Companies may face potential production suspensions while waiting for license approvals, prompting efforts to develop alternative robust supply chain outside of the Chinese supply chain.

For more blog articles click here

To view GDC market research reports click here

Golden Dragon Capital Limited | Comprehensive Market Research Reports

About us

GDNM provides commentary on how energy transition minerals contribute towards the decarbonisation and electrification of the global economy, with a particular focus on the lithium-ion battery and rare earths supply chains.

GDNM founder, Mr Brendan Jephcott is an Australian who has worked in the global mining sector for more than 13 years, of which his experience covers precious metals, nonferrous metals, ferrous metals, base metals, bulk commodities, rare earths, and the lithium-ion battery industry.

For the last 9 years Mr Jephcott has focused on the burgeoning new energy industry, participating in cross-border transactions in buy-side and sell side roles, cultivating a global business network ranging from upstream resource companies, midstream intermediate product producers, and downstream consumers such as gigafactories and auto companies.