China's tightened export controls are having a clear impact: exports of the critical metals dysprosium and terbium have fallen sharply. While some buyers continue to receive shipments, Japan is left out, potentially affecting its industry. At the same time, exports of rare-earth magnets are picking up again.
Since April 2025, exports of dysprosium, terbium, and other rare-earth elements from China have been subject to stricter approval procedures. Chinese trade data for January and February 2026 confirm this trend: exported volumes have declined significantly.
Export Volumes Decline as a Major Buyer Is Left Empty-Handed
Dysprosium exports, for example, plunged by nearly three-quarters compared to the previous year, totaling 6,182 kilograms. Vietnam was the largest recipient, followed by South Korea and Estonia. In February, however, no dysprosium left the country.
Terbium exports also show a sharp decline. Compared with January 2025, exports fell by around 35 per cent. In February, the export volume was just 500 kilograms, an 87 per cent drop year-on-year. While South Korea received the bulk of terbium in January, smaller shipments went to Vietnam, Estonia, and Germany. In February, only Estonia received material.
Estonia is currently developing its own value chain for rare-earth magnets. Dysprosium and terbium are key components of these high-performance magnets, as they enhance both their efficiency and temperature resistance.
Japan does not appear among the recipient countries in either month. At the beginning of the year, the Chinese government tightened export controls for dual-use goods to Japan. The move is likely linked to tense political relations between the two countries. Although the measures primarily target military applications, they could also affect other sectors of industry.
Development of dysprosium exports in recent months
Development of terbium exports in recent months
Development of exports of rare earth magnets in recent months
China Increases Rare-Earth Magnet Exports at the Start of the Year
By contrast, exports of rare earth magnets show the opposite trend. In January, shipments totalled 6,024 tons, just slightly below last year's level. Germany received more than 20 per cent of this volume, with smaller shipments going to South Korea, the U.S., and Vietnam. In February, exports rose by more than 30 percent year-on-year, reaching 4,739 tonnes. The distribution of destinations was similar to January.
Unlike dysprosium and terbium, Japan continued to receive rare-earth magnets in both months, with shipments totalling roughly 220 tons, roughly in line with the previous year.
Brian Hendrich, market analyst at raw materials trader TRADIUM, comments on the new figures: "The strict requirements for exporting dysprosium and terbium continue to have an effect: export volumes have dropped sharply. Dysprosium exports fell to zero in February, while terbium exports also declined significantly. Looking at the receiving countries, Japan did not receive heavy rare earth elements from China in the first two months of the year. This reflects growing tensions between the two countries. While Japan no longer receives material for its own high-performance magnet production, China continues to deliver finished rare-earth magnets, whose end-use is easier to track than raw materials. China justified the tightened export controls to Japan in early January with the dual-use nature of these materials, which can be used for both civilian and military purposes."
