China is making it harder to get rare earth magnet export licenses, sources say

Core Insights - Chinese rare earth magnet companies are experiencing increased scrutiny on export license applications since September, raising concerns about potential restrictions on magnet shipments despite previous commitments to expedite exports in a trade truce with the U.S. [1][2] Export License Scrutiny - The process for obtaining export licenses has become more challenging, with applications being returned more frequently for additional information [3] - Although approvals are generally still within the commerce ministry's 45 business day deadline, the scrutiny level has returned to that seen during the height of the trade war, leading to potential shortages [4] Export Data and Trends - China's rare earth exports fell by 31% in September, although it is unclear how much of this decline is attributed to magnets specifically [5] - There was a notable decrease in rare earth magnet exports in April and May, followed by growth in June, July, and August [6] Global Supply Context - China remains the world's leading supplier of rare earths, which are essential for various technologies, including electric vehicles and military applications [7] - Following the expansion of export controls, there has been a surge in inquiries from foreign clients aiming to secure orders before the new regulations take effect on November 8 [8]