China Offers Vague Rare-Earth Export Concessions on Yttrium, Neodymium With No Timeline
China agreed preliminarily to address U.S. concerns over export controls on yttrium, scandium, neodymium and indium, but provided no timeline or specific benchmarks for lifting restrictions. Persistent licensing delays by China’s MOFCOM have kept U.S. rare-earth imports constrained, sustaining elevated prices and factory cutbacks since April 2025.
1. Export Controls and Retaliation
China introduced export restrictions on key rare earths—yttrium, scandium, neodymium and indium—in April 2025 as retaliation for U.S. tariffs, effectively consolidating over 99% of global heavy rare-earth processing and sharply reducing export volumes.
2. Vague Government Concessions
In May 2026 Chinese authorities agreed to 'address' U.S. supply concerns but offered no deadlines, benchmarks or formal mechanisms, repeating prior diplomatic pledges that failed to translate into restored shipments.
3. Ongoing Supply Constraints
Delays by MOFCOM in issuing export licenses have prolonged U.S. shortages, prompting automakers to cut utilization and driving European rare-earth prices to six times Chinese levels, creating volatility and upward price pressure for REMX holdings.