Overview
- April export curbs slashed China’s magnet shipments by about 75% within two months and prompted several automakers to pause or slow production
- Since June, the Ministry of Commerce has required magnet producers to submit customer and transaction details under a new supply chain tracking system
- Beijing began issuing a small number of export licenses following a June 27 trade agreement with the United States, but industry insiders report that approvals remain slow
- Domestic rare earth magnet makers have cut output and are grappling with inventory backlogs amid weak electric vehicle demand
- Efforts by the U.S., Japan and Europe to build alternative rare earth mines and processing facilities are under way but face years of regulatory and technical hurdles