Tecomag Insights: What China’s Tightened NdFeB Magnet Export Rules Mean for Buyers

For decades, China supplied over 80% of the world’s rare earth magnets. That changed in April 2025, when Beijing enacted strict controls on exports of NdFeB magnets (also called Neodymium magnets) containing key heavy rare earths like dysprosium (Dy) and terbium (Tb). The move, citing national security under the Export Control Law, targets materials critical for EVs, wind turbines, and defense systems.

The Core of the Policy

Restricted Items: Export licenses are now mandatory for NdFeB magnets containing Dy/Tb—vital for high-temperature stability—and Samarium-Cobalt (SmCo) magnets used in aerospace.

Licensing Exclusivity: Only four Chinese manufacturers (including Baotou Tianhe Magnetics) secured initial licenses, prioritizing European automakers like Volkswagen while excluding U.S. firms.

Customs Enforcement: Exporters must declare customs codes (e.g., 3824999922, 8486909110) and prove end-use compliance.

Why This Changes Everything

Supply Squeeze: Though exports continue post-license approval, shipments to the U.S., Japan, and South Korea (previously 30% of China’s magnetic exports) face delays.

Price Divergence: International NdFeB magnet prices now trade at a 15–20% premium over domestic Chinese prices due to compliance costs and scarcity.

Detection Rigor: Customs use ICP-MS (precision: 0.01%) and vibration magnetometers to verify Dy/Tb content and magnetic properties.

Adaption to this new policy

Companies like Tecomag are adapting through:

1. New formula of Ndfeb manget:  Reducing key heavy rare earth elemment percentage, use other elements as alternatives.

2. Offer high performance sinter ferrite magnet as alternative solution for partial industry demand.

The Road Ahead

China’s export policy is a strategic lever—not a ban. As one industry report notes, it aims to “upgrade China’s role from raw material supplier to high-value magnet technology leader”. For global buyers, diversification and technical agility are now non-negotiable.

The era of unfettered rare earth access is over. Adaptation is the price of resilience.

For sourcing licensed NdFeB magnet suppliers or technical compliance details, consult China’s MOFCOM portal or reach out to Tecomag’s trade advisory team.