From December 1, 2025 – new Chinese rules will shake the magnet market

What exactly changes from December 1?

Until now, the restrictions applied only to raw material exports from China. Now Beijing extends control over the entire supply chain – including products manufactured abroad. If a company from Poland, Germany or South Korea uses a component containing even a small amount of Chinese neodymium or dysprosium, it must apply to the Chinese Ministry of Commerce (MOFCOM) for permission to export its final product. Without this license, the shipment may face a sales ban or confiscation at the border of the destination country.

China justifies the new rules as necessary for protecting national and technological security. However, analysts agree it is also a geopolitical tool – particularly aimed at NATO countries, the US and the EU. The implementation of these rules coincides with the planned 25% US tariff on neodymium magnets from China, signaling the start of a global trade confrontation over critical raw materials.

How will this affect the magnet market and availability in Europe?

Europe depends on China for 92% of its rare earth metal supply, and over 80% of industrial neodymium magnets are produced in China. For European distributors, this means a serious risk: deliveries may be halted and stock depleted within weeks. In practice, without importers and wholesalers that secure supplies in advance, magnets may simply become unavailable.

Market forecasts indicate a 30–60% increase in wholesale neodymium magnet prices in Q1 2026. Some Chinese factories are already delaying production, and delivery times are extending to 45–60 days. This could cause shortages not only of industrial magnets but also of components used in electronics, electric motors, door systems, sensors and audio equipment.

What can consumers and small businesses do?

From a consumer and small business perspective, it’s wise to secure magnet stocks in advance – whether for production, service, or personal projects. Even if prices seem stable today, the situation could change rapidly once the new rules take effect. Tariffs, licenses and logistical uncertainty will make magnets a scarce commodity.

If you use magnets in workshops, assemblies, DIY or maintenance, consider ordering several months ahead. Many stores and warehouses may face limited supply after the New Year, and prices will likely reflect not only import costs but also exchange rate fluctuations and supply volatility.

Industry experts warn customers not to wait until the last moment. After December 1, 2025, every magnet batch with even partial Chinese origin in its documentation may require extra export licensing. This will mean longer lead times and difficulties maintaining supply continuity across Europe.

Geopolitics and consequences for the West

Experts have long warned that China could use its dominance in rare earth production as a political weapon. Now it’s happening. The new laws not only slow down Western defense programs but also disrupt supply chains in high-tech, renewable energy and electromobility sectors. The US, Japan and the EU are investing in recycling and local magnet manufacturing, but achieving independence will take years.

Analysts from European research centers note that this is just the beginning. Beijing is using rare earth control as a bargaining chip in trade and diplomatic talks. In 2026, further export limits are possible, with priority given to so-called “neutral” countries in the technological rivalry.

Summary – the last moment to act

The changes effective from December 1, 2025, may completely reshape the global magnet market. On one hand, it’s a geopolitical move by China; on the other, a wake-up call for Europe to strengthen its own production capabilities. For consumers and small companies, this is the last opportunity to buy magnets at current prices. Once the new rules take effect, availability may decrease, and prices will rise with import costs and tariffs. Acting early is the best strategy before the December regulations take hold.