China Introduces Individual Export Licenses for Seven Critical Rare Earths: Direct Impact on Clean Technology and Defense Supply Chains

On May 14, 2026, China's Ministry of Commerce (MOFCOM) published export control measures placing seven rare earth elements under a mandatory individual licensing regime: dysprosium (Dy), terbium (Tb), gadolinium (Gd), lutetium (Lu), ytterbium (Yb), scandium (Sc), and europium (Eu). Each shipment now requires a dedicated export license, with MOFCOM reviewing the declared end-use before granting approval. No blanket or framework-contract authorization mechanism exists.

This measure is part of a broader package of export controls rolled out from May 5, 2026, which had already introduced restrictions on semiconductors, drones, and telecommunications equipment. The addition of these seven elements extends the scope to physical inputs that are critical for clean technology manufacturing, precision electronics, and defense systems. Industrial applications are highly concentrated: dysprosium and terbium are key components in high-temperature permanent magnets used in electric motors and wind turbines; gadolinium is used in displays and medical imaging diagnostics; europium and lutetium serve in LED lighting and radiation detection; scandium is alloyed into high-strength aluminum; and ytterbium is applied in laser systems and precision measurement equipment.