Update on export regulations for rare earth elements (China)

Following recent developments in trade discussions between China and the United States, we would like to inform you of a change in the export regulations for rare earth elements. These regulations impact the availability and lead times of magnets, as well as machines and systems in which magnetic components are used.

Last year, the Chinese Ministry of Commerce introduced new export guidelines via Announcement No. 18. This regulation has been in effect since 4 April 2025 and stipulates that products containing heavy rare earth elements (HREs), such as dysprosium, terbium, and samarium, may only be exported with a valid export license.

On 9 October, additional measures were announced. However, during the recent China–US summit it was decided to temporarily postpone these additional measures. This decision was formally confirmed on 7 November via Notice 70.

Important: Announcement No. 18 remains fully in force. The situation has therefore not worsened, but it has also not been relaxed.

For Bakker Magnetics and its customers, this means the following:

• Practical impact of the new regulations on 7RE-free magnets may lead to unpredictable release times due to 2.5 to 4 months and may be longer if additional inspections are required.

• Customers using magnets that contain the seven restricted elements (7RE) must provide an End-User Certificate (EUC).

• The practical impact of the new regulations on non-HRE magnets may lead to unpredictable release times due to:
  Third-party testing: All magnets must now be tested by independent laboratories that are certified and government-approved, typically taking 10 working days, or longer if laboratories are overloaded.
  Customs clearance: Lead times have increased due to stricter procedures. Customs authorities may also take their own samples for independent verification, further extending lead times.

• Chinese suppliers require time to implement the new procedures, which may temporarily affect production processes and customs handling.

• The situation is dynamic: interpretation and enforcement of the regulations may change at short notice.

• We are proactively developing contingency plans in case the government decides to expand the current list of restricted elements.

Where possible, we advise customers to explore 7-RE-free alternatives together with us. All other provisions of Announcement No. 18 remain unchanged and have previously been explained by Bakker Magnetics.

These developments may affect lead times, availability, and costs of magnetic components and systems.

The measures imposed by the Chinese government are beyond the control of Bakker Magnetics (force majeure). Nevertheless, we are doing everything possible to minimize the impact on our customers. We are closely monitoring the situation and working intensively with our suppliers and supply chain partners to ensure continuity of supply.

We are currently conducting an additional impact analysis to clearly identify the consequences for our products and deliveries. We will actively inform you as soon as more information becomes available.

If you have any questions or receive signals from your own supply chain, please do not hesitate to contact your regular contact person at Bakker Magnetics.