China tightens rare earth export curbs on 10 US companies

China's Ministry of Commerce, or MOFCOM, has tightened export restrictions on 10 US companies, targeting dual-use items, including rare earth elements and related magnets.

In a statement issued June 22, MOFCOM said the affected companies would be denied export permits to safeguard national security and uphold China's international non-proliferation obligations. China defines dual-use items as products or services that can be used for both military and civilian purposes. In addition to rare earths, the designation covers critical minerals and materials such as lithium and graphite, along with their associated products.

The measure effectively amounts to a full ban on dual-use exports to the listed companies, tightening rules that previously required only export licenses.

The policy highlights China's significant role in global critical minerals supply chains. Other countries remain heavily dependent on China for rare earths, with the International Energy Agency estimating that China accounted for 61% of global mined supply and 91% of global refining and processing capacity for major rare earths in 2024. China also dominates processing for other critical metals and minerals, including lithium, copper, cobalt and graphite.

Among the companies named are MP Materials Corp., a Pentagon-backed company that operates the Mountain Pass mine in California, the only active rare earth mine in the US, and USA Rare Earth Inc., which produces magnets containing rare earths.

The announcement follows a recent agreement by the Group of Seven countries to limit imports of rare earths and permanent magnets from any single country outside the bloc and its partners to below 60% by 2030, as part of efforts to reduce reliance on China.

It also comes after a May 14–15 summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. Immediately after the summit, the White House said China had pledged to address US concerns about China's restrictions on rare earth processing equipment and technology.

Export controls still in place

China's export controls on several heavy rare earth elements — including dysprosium, gadolinium, lutetium, scandium, terbium and yttrium — as well as associated metals and magnets, took effect April 4, 2025, following the introduction of reciprocal tariffs by the US. The measures triggered a sharp decline in Chinese exports of rare earths and permanent magnets, slowing output in the automotive sector.

Although export volumes recovered in June and July 2025 as trade tensions eased, Western industry groups, including the European Association of Automotive Suppliers, continued to report inconsistent approvals for export licenses.

A second wave of export controls, covering five rare earth elements — holmium, erbium, thulium, europium and ytterbium — along with related products, equipment and technologies, was initially scheduled to take effect Nov. 7, 2025, but is now scheduled to take effect Nov. 10, 2026.

Platts, part of S&P Global Energy, assessed neodymium-praseodymium oxide at $120/kg CIF North America on May 29, unchanged from the previous month.