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China Tightens Rare-Earth Grip With 2025 Export Curbs and State Control of Key Dysprosium Source

State control of a sole‑source dysprosium refinery underscores Beijing's use of export restrictions for leverage.

Overview

  • Beijing imposed new export controls in April and October 2025, enabling it to withhold rare earths and magnets during trade disputes.
  • On April 1, a Chinese state‑controlled buyer acquired most shares of a Wuxi refinery that is the world's only producer of ultra‑pure dysprosium for AI chips.
  • On April 4, China halted exports of dysprosium and six other rare earths to the United States and allied countries.
  • Dysprosium from the Wuxi plant is used in capacitors found in Nvidia's Blackwell artificial intelligence chips, heightening supply‑chain exposure.
  • China now supplies roughly 90% of global rare earths and magnets after decades of state‑led buildup, tighter quotas since 2006, and a 2010 test of export leverage against Japan.