Sale of neodymium magnets, ferrite magnets, magnets and permanent magnets

Thank you very much for your help.
One year has passed since China began strengthening export controls on medium and heavy rare earth elements.
Since last year, we have received an increasing number of inquiries and information regarding the environment surrounding permanent magnets and their related supply chains.
In response to this situation, the Japan External Trade Organization (JETRO) has recently published a series of analytical reports summarizing the actual implementation of the system and its impact on Japanese companies.
As a magnet manufacturer, we believe it is important to calmly assess the current situation and establish a shared understanding with everyone involved.
This guide summarizes the key points regarding the current position and considerations, based on JETRO's analysis.
(A link to the report is provided at the end; please refer to the JETRO report for further details.)

1. Overview of strengthened export controls (from JETRO report)

In recent years, the Chinese government has been gradually strengthening export controls on dual-use items, including rare earth elements, from an economic security perspective.

In particular,Measures implemented in April 2025Then,

• samarium
• ジスプロシウム
• テルビウム

Seven types of medium- and heavy rare earth elements, which are important as permanent magnet materials, have been newly included in the list of items subject to management.
As a result, some permanent magnet materials and primary processed products now require prior permission for export from China.

2. Impact on permanent magnets and related products

According to JETRO's analysis, from spring 2025 onwards,

• Exports of rare earth magnets from China to Japan temporarily decreased significantly.
• Subsequently, although only temporarily, the volume recovered as the administrative delays were resolved and export permits were obtained more quickly.

This movement has been observed. On the other hand,

• The time required to obtain an export license varies greatly from case to case.
• In some cases, it can take several months from application to approval.
• There are challenges regarding the transparency and predictability of the review process.

These points have been identified as common practical issues for Japanese companies.

3. Points to note regarding determination of applicability and licensing procedures.

The JETRO report highlights points that require particular attention in practice:

• Judging solely based on the HS code is insufficient; individual determination of applicability is required, taking into account factors such as the elements contained, purity, degree of processing, intended use, and integration method.
• While the Q&A published by the Ministry of Commerce is helpful, it has been repeatedly pointed out that companies are responsible for determining how to apply it to their individual products.

4. Characteristics of the recent regulatory tightening (JETRO's analytical perspective)

From JETRO's series of analyses, regarding the current rare earth export controls,

• This is not a "total ban" that would halt exports across the board.
• On the other hand, the following are not always easy to predict: ① the time required to obtain permission, ② whether or not future exports will be possible, and ③ whether or not to continue the export.

This indicates a situation where uncertainty in the supply chain is increasing.

5. Our current stance

We will continue to collect and organize relevant information and share it promptly as needed.

<Reference> JETRO Regional Analysis Report
March 10, 2026: "Significant impact on magnet exports to Japan"
March 24, 2026: "Challenges in the Export License Acquisition Process"
March 24, 2026: "Issues Regarding Determination of Applicability"
March 31, 2026: "Challenges for Improving Predictability"

■ Related past announcements
Regarding Announcement No. 11 and Announcement No. 12 issued by the Ministry of Commerce of China on February 24, 2026Current status of response regarding China's rare earth export restrictions [November 7, 2025]
[Important] Regarding the Chinese government's "Rare Earth Export Restrictions" coming into force on April 4th

*The title image is an AI-generated image created by Gemini.