Progress in export license processing, but risk of rare earth supply chain disruptions remains significant  

The backlog of pending applications for export licenses for rare earth elements and permanent magnets is shrinking, but significant challenges remain, according to the latest industry assessment on export restrictions from China.

Over the past 10 days, a significant share of urgent export licenses has been granted, likely limiting the chance of supply chain disruptions in the coming weeks. However, while short-term disruptions have largely been mitigated, the situation remains highly critical and supply chain disruptions during summer are still possible. 50 – 60% of total requested licenses have been issued to date, while a further 25% of applications must be approved within the next two weeks to prevent new disruptions emerging over summer.  

Uncertainty remains significant and several suppliers have reported issues regarding customs procedures, for instance due to additional controls or investigations on products out of scope. Additional checks at customs could add one to two weeks additional delay to the release of goods.  

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