China’s looming November export controls test rare earth refining, recycling ambitions

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Key takeaways: China’s November deadline could extend export controls deeper into global rare earth supply chains. April 2025 controls widened the gap between Chinese and ex-China rare earth prices, ...

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deeper into global rare earth supply chains.\nApril 2025 controls widened the gap between Chinese and ex-China rare earth prices, ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/chinas-looming-november-export-controls-test-rare-earth-refining-recycling-ambitions/\">Source Link</a>\n\n</div>\n","source":"fastmarkets_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>China’s looming November export controls test rare earth refining, recycling ambitions</title>\n<style 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margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChina’s looming November export controls test rare earth refining, recycling ambitions\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-09-10 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/chinas-looming-november-export-controls-test-rare-earth-refining-recycling-ambitions/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Key takeaways:\n\nChina’s November deadline could extend export controls deeper into global rare earth supply chains.\nApril 2025 controls widened the gap between Chinese and ex-China rare earth prices, ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/chinas-looming-november-export-controls-test-rare-earth-refining-recycling-ambitions/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"REMX","symbol_name":"VanEck Rare Earth and Strategic Metals ETF","start_time":0,"source_url":"https://www.fastmarkets.com/insights/chinas-looming-november-export-controls-test-rare-earth-refining-recycling-ambitions/","article_id":"2666677615","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/chinas-looming-november-export-controls-test-rare-earth-refining-recycling-ambitions/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2666677615","pubTimestamp":1789012800,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"Rare earths refiners, recyclers and magnet makers outside China face uncertainty over their access to technology, equipment and feedstock due to China’s expected export controls in November, market participants have told Fastmarkets.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"REMX":"VanEck Rare Earth and Strategic Metals ETF","GCAD":"Gabelli Commercial Aerospace & Defense ETF","IEA":"Infrastructure and Energy Alternatives, Inc.","CRTC":"XTRACKERS US NATIONAL CRITICAL TECHNOLOGIES ETF","DRNL":"Defiance 2x Daily Long Pure Drone and Aerial Automation ETF","BERZ":"MicroSectors FANG & Innovation -3X Inverse Leveraged ETN","FOWF":"Pacer Solactive Whitney Future of Warfare ETF","REXC":"Sprott Rare Earths Ex-China ETF","WDRN":"WisdomTree Physical AI Humanoids and Drones Fund","CRIT":"Optica Rare Earths & Critical Materials ETF","FXZ":"First Trust Materials AlphaDEX Fund","BK4129":"建筑与工程","ORBX":"Global X Space Tech ETF","WAR":"U.S. Global Technology and Aerospace & Defense ETF","TSNF":"Truth Social American Next Frontiers ETF","WEPN":"Nicholas Defense and Rare Earth Income ETF","AIHY":"Defiance AI Hyperscale Leaders ETF","FITE":"SPDR Kensho Future Security ETF","MVPS":"Amplify Thematic All-Stars ETF"},"translate_title":"中国即将于11月实施的出口管制考验了稀土提炼和回收的雄心","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"REXC":0.81,"TSNF":1.5,"CRIT":1.5,"CRTC":1.5,"MVPS":1.5,"FXZ":1.5,"DRNL":1.5,"WDRN":1.5,"ORBX":1.5,"BERZ":1.5,"WAR":1.5,"FITE":1.5,"GCAD":1.5,"REMX":1.5,"WEPN":1.5,"FOWF":1.5,"AIHY":1.5,"IEA":1},"content_text":"Key takeaways:\n\nChina’s November deadline could extend export controls deeper into global rare earth supply chains.\nApril 2025 controls widened the gap between Chinese and ex-China rare earth prices, boosting non-Chinese projects.\nRecycling and diversification are gaining momentum but still face equipment, expertise and feedstock challenges.\n\nChina rare earth export controls and the November 2026 deadline\n\nMarket participants operating in the rare earths supply chain are increasingly focused on 10 November 2026, when China’s export controls are due to be reintroduced, assuming the current suspension is not extended or the ban is withdrawn. \nUnder China’s Announcement No. 61, licensing requirements can be applied to foreign-made products containing specified Chinese-origin rare earth materials above certain thresholds, products manufactured using covered Chinese rare earth technologies, or products incorporating Chinese-origin controlled items.\nIf implemented, licensing measures will extend export control requirements much deeper into global supply chains, extending measures to cover equipment and technology used for rare earth separation, strip alloy production, as well as magnet manufacturing, market participants say. \nImpact of the April controls \nChina’s introduction of export controls on heavy rare earths on April 4, 2025, marked a major turning point for the market. \nFor decades, China has been the dominant supplier of the rare earths required to produce sintered neodymium-iron-boron (NdFeB) magnets: neodymium-praseodymium (NdPr), dysprosium and terbium. \nNdPr is the main rare earth ingredient used to produce NdFeB magnets, with dysprosium and terbium often added as a dopant to improve performance. NdFeB magnets are the most widely used type of high-performance permanent magnet. Alternatives, like samarium-cobalt (SmCo) magnets, are used in more specialized applications, including aerospace and defense.\nChina’s April export controls adjusted the flow of rare earths and permanent magnets, allowing it to effectively turn the tap on and off: restricting specific countries or end users while easing controls when desired.\nDysprosium and terbium prices diverge outside China\nMeanwhile, the resulting reduction in the availability of the heavy rare earths dysprosium and terbium outside China has led to a steadily widening divergence between domestic Chinese and ex-China prices.\nFastmarkets prices show that dysprosium oxide in Europe has traded at around 4.9 times the domestic Chinese price, while terbium oxide in Europe has traded 3.8 times the Chinese price. \nFastmarkets’ weekly assessed price for dysprosium oxide 99.5%, ex-whs Rotterdam was $1,250-1,675 per kg on August 27, compared to $270-330 per kg fob China. Meanwhile, Fastmarkets’ weekly assessed price for terbium oxide 99.99%, ex-whs Rotterdam was $4,200-5,000 per kg on August 27, compared to $1,180-1,270 per kg fob China. \nHigher prices globally have provided a boost to established producers outside China, as well as emerging producers, which said their projects had become more economically viable.\nAustralian rare earths producer Lynas Rare Earths, for example, has said that the company has benefited from China’s export controls, while also flagging higher costs of ‘sourcing inputs’ outside China.\nRare earth export controls boost non-Chinese producers\nLynas started to produce NdPr oxide in 2013, followed by dysprosium oxide in May 2025 and terbium oxide in June 2025.\nFor consumers, however, the market situation has become increasingly difficult, with magnet manufacturers and other downstream users facing sharply higher costs and limited availability, especially for heavy rare earth materials.\nJapan, the largest consumer of dysprosium and terbium outside China, was particularly affected, as reflected in China’s heavy rare earth export data. Although China has continued to approve some heavy rare earth exports under licence, no dysprosium oxide or terbium oxide has been exported to Japan in 2026, data from the General Administration of Customs China shows.\n\n\nAt the same time, China has continued to export sintered NdFeB magnets, owing to the commercial value of maintaining high-value exports while retaining the ability to restrict supply through its licensing system. \n\nThe unpredictability of licensing has nevertheless heightened supply concerns and encouraged governments and companies outside China to accelerate efforts to diversify sources of supply. \nGovernments accelerate rare earth supply chain diversification\nIn June, G7 members agreed to reduce their reliance on any single supplier of rare earths and permanent magnets to below 60% by 2030. \nSince April 2025, governments have committed hundreds of millions of dollars to projects spanning separation, metallization, magnet manufacturing and recycling.\nSelected government funding for refining, recycling, magnet projects since April 2025\nGovernmentCompany / ProjectDate announced FundingCompany objectiveUSUSA Rare EarthJanuary 26, 2026$1.6bnDevelop the Round Top deposit and Oklahoma magnet facility to produce 10,000 tonnes per year of NdFeB magnetsAustraliaIluka, EneabbaJune 22, 2026A$1.65bn ($1.15bn)Develop a large integrated rare earth refinery to produce magnetic rare earthsUSPhoenix TailingsJune 16, 2026$500m conditional loanDevelop a domestic rare earth separation and metallization plantUSMP MaterialsJuly 10, 2025 $550m ($400m equity investment, $150m loan)Expand heavy rare earth separation at Mountain Pass and develop its magnet facility in Texas to produce 10,000 tonnes per year of NdFeB magnetsUKCritical Minerals Programme: Magnet HubJuly 1, 2026£20m ($27m)Support a UK-based facility for developing manufacturing capability for rare earth magnetsCanadaCyclic MaterialsJune 11, 2025$25mEstablish a rare earth recycling and research centreSource: Fastmarkets \nDespite the rush of funding, much of the world’s magnet manufacturing capacity, and its demand for dysprosium and terbium, remains concentrated in Japan and, to a lesser extent, South Korea.\nAgainst this backdrop, magnet consumers in Japan have stepped up efforts to secure alternative sources of permanent magnets, such as through recycling. In April, Osaka-headquartered Daikin Industries, the world’s largest air-conditioning manufacturer, partnered with Shin-Etsu Chemical, Hitachi and Tokyo Eco Recycle to recover and recycle rare earth magnets from compressors from 2027.\nHow are recycling projects being affected?\nThe implications for rare earth refining and recycling projects outside China remain mixed. \nSome market participants say the economics of recycling permanent magnets have improved due to elevated rare earths prices and concerns about supply security. Others point to the significant hurdles projects still face in catching up with China’s decades-long industrial lead.\nOne company looking to scale is magnet recycler HyProMag, a UK-based business established in 2018 by researchers from the University of Birmingham’s Magnetic Materials Group. \nHyProMag and its majority owner Mkango Resources are advancing recycling projects across the UK, Germany and the US, while also developing rare earth separation capabilities. The company uses its proprietary Hydrogen Processing of Magnet Scrap (HPMS) technology, which uses a hydrogen decrepitation process to break NdFeB magnets from electrical products such as hard disk drives into powder which can then be re-processed into new magnets.\nIn July 2025, HyProMag launched a £6.5 million circularity project alongside Mkango, Jaguar Land Rover (JLR), Less Common Metals, EMR Group and the University of Birmingham to develop technologies to extract and recycle magnets. The project remains at a pilot-to-demonstration stage. \n“By recovering rare earth elements from our end-of-life vehicles and returning them to new products, we are showing how circularity can help reduce CO2 emissions, increase recycled content, and reduce exposure to global supply chain risks,” Paul Francis, senior manager of circularity at JLR, told Fastmarkets.\nAnother key project is Belfast-based Ionic Technologies, which converts both rare earth concentrates and end-of-life NdFeB magnets into high-purity, separated rare earth oxides for magnet production.\nUnlike HyProMag, Ionic uses a hydrometallurgical process to dissolve and separate rare earth oxides from permanent magnets. Ionic’s Belfast demonstration plant can process 30 tonnes per year of waste magnets and swarf into separated, high-purity magnet rare earth oxides (REOs), the company says. Since June 2023, the company says it has produced 10 tonnes of separated magnet REOs.\nDependence on Chinese rare earth equipment remains a risk\nBut China’s looming export controls add a layer of uncertainty. Many recycling projects remain dependent on Chinese equipment, chemical extractants and technical expertise, raising concerns over future access should further restrictions be introduced in November. \n“Much of the specialized rare earth processing equipment is sourced from China and extractants used in rare earth separation circuits are also predominantly produced in China, which brings its own complications,” Nielson Beddoe, managing director of Mkango said.\n“Purpose-built Chinese equipment can cost roughly one-third as much as Western alternatives. For rare earths separation, the equipment best suited for the application — and the cheapest — is Chinese,” Beddoe added.\nBeddoe also said that export controls could affect access to key equipment such as mixer-settlers, while access to technical expertise remains limited because much of the industry’s workforce has had to be trained from scratch outside China.\nRestrictions on larger reaction vessels have already affected project planning, according to the company.\n“For some reason, we used to buy 100-litre glass reaction vessels, but we are now being told that we can only use 80-litre reactors,” Senior Process Engineer Ed Bainbridge at Mkango said. \nCompetition for scrap\nAccess to scrap feedstock is emerging as another potential bottleneck for recycling projects seeking to scale. \nAccording to the International Energy Agency (IEA), secondary supply could reduce mining requirements by 35% by 2050, with 25% coming from manufacturing scrap and a further 10% from end-of-life recycling.\nHowever, governments are increasingly seeking to retain strategically important materials within their own borders. On July 30, the US government moved to impose temporary restrictions on exports of black mass and end-of-life rare earth permanent magnets as part of a broader effort to secure materials considered essential to national defense.\nHyProMag currently sources material primarily from hard disk drives, electric motors and other forms of electronic waste.\n“At the moment, waste electronics is a promising source because magnets have been used there for a long time and product life cycles are relatively short,” HyProMag Managing Director Nick Mann told Fastmarkets. \nFuture scrap streams are expected to include more electric vehicles, e-bikes, industrial motors and MRI scanners, though many of these products have not yet reached their end-of-life cycles. \nFeedstock quality challenges rare earth recyclers\nAdding to the challenge, magnets entering the recycling stream vary in size, age, performance, composition and magnetization. Differences in how they are embedded in finished products can also make dismantling more labor-intensive. \nThis variability complicates the standardization of collection, separation and processing, affecting both the volume and consistency of recovering permanent magnets and the rare earths inside them. \n“Scrap merchants cannot guarantee end-of-life magnet feedstock composition, so significant variability can exist,” Ionic Technologies Managing Director Tim Harrison said. \n“Removing this variability for new metals alloy and magnet manufacturing is key given NdFeB value-chain partners don’t want sub-standard rare earth oxides with impurities,” Harrison added.\nIndustry experts have raised similar concerns.\n“Quality remains one of the industry’s most significant challenges. Collected magnets vary substantially in composition, age and performance characteristics,” John Ormerod, head of magnetics at consultancy JOC LLC, said.\n“Without rigorous controls and clearly defined quality standards, recycling initiatives risk producing materials with degraded performance unsuitable for high-tech applications,” Ormerod added.\nThe amount of potentially recoverable material also varies considerably between applications.\n“A speaker may contain only 30-40g of permanent magnets. A magnetic separator may contain around 200g. Electric vehicle drivetrains use several kilograms, while offshore wind turbines can contain several tonnes,” Mann said. \nMagnet manufacturers are also looking for ways to reduce heavy rare earth content in magnets, or eliminate it altogether, lowering dysprosium and terbium intensity. Alternatives such as ferrite and aluminium-nickel-cobalt magnets exist, although they involve performance trade-offs, sources said. \nNovember looms \nThe prospect of further restrictions is already influencing investment decisions. But has it strengthened the case for refining, recycling and magnet manufacturing projects outside China?\n“The prospective export controls do create uncertainty in the offtake market, which affects the whole supply chain,” Harrison said. \n“However, this further substantiates the need to develop domestic integrated supply chain capacity,” Harrison added.\nThere were hopes that a trade agreement would be agreed that meant the export controls would be lifted.\nAnd the US government confirmed that Chinese President Xi Jinping will visit the White House on September 24 but declined to comment on the agenda.\nHowever, there are concerns that the political situation has deteriorated and reaching an agreement will be challenging, according to sources.\n“Now, the US-Iran war and expanding US sanctions are inflaming tensions with China, and the US appears unwilling (or unable) to offer any trade concessions that China really wants,” one source said. \n“Without some radical change, it would be naïve to assume the suspension will be extended or bargained away.” \nStay informed, make confident decisions and navigate the dynamic rare earths market with Fastmarkets. Ask about our products today","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}