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China Rare Earth Exports to Japan Plummet
23 Jun
Summary
- China's rare earth exports to Japan were negligible in May.
- Japan's magnet makers rely heavily on Chinese rare earth imports.
- Taiwan dispute triggered China's export controls on rare earths.
In May 2026, China's exports of several critical rare earths to Japan were negligible, marking a continuation of supply disruptions. This situation is directly linked to a diplomatic dispute between the two nations concerning Taiwan.
Japanese manufacturers, who are world leaders in rare earth magnets outside of China, are significantly dependent on imports of key heavy rare earths from Beijing. The export controls, introduced by China on materials like dysprosium, terbium, and yttrium, have become a notable diplomatic tool.
Data from May 2026 revealed no shipments of terbium or dysprosium oxide to Japan since November 2025. Similarly, yttrium oxide shipments were minimal since December 2025. China publicly escalated these export restrictions targeting Japan in January and February 2026.
The export curbs have impacted the availability of certain magnets and spurred Japanese investment into alternative heavy rare earth supply sources. Shin-Etsu Chemical, a rare earth magnet producer, announced plans for its first new refining facility since 2008.
Additionally, Japan, a major consumer of chip metal gallium, received its first significant shipment from China since December 2025 in May 2026. However, China's overall rare earth magnet exports in May 2026 decreased by 35% month-on-month.
