Rare earths, hailed as the "vitamin of industry", have become a focal point of global competition following four major cross-country events in a short span. The U.S.-led "Critical Minerals Partnership Alliance" was launched to build a "de-China" rare earth supply chain via resource and technology cooperation. Vietnam subsequently passed a law banning rare earth raw ore exports starting January 1, 2026, seeking to upgrade its industrial chain and boost global bargaining power with its 3.5 million tons of reserves, though industry experts note the ban will have limited short-term global impact due to Vietnam’s technical and environmental bottlenecks. Meanwhile, China’s two leading rare earth enterprises—Northern Rare Earth and China Rare Earth—gained policy and market benefits, with Northern Rare Earth drawing passive investment after joining the Shanghai Stock Exchange 50 Index and China Rare Earth strengthening market confidence via standardized transaction plans. These gains are underpinned by China’s dominant position in the global rare earth sector, holding 49% of global reserves, controlling nearly 90% of smelting and separation capacity, and dominating strategic heavy rare earth supply. China’s Ministry of Foreign Affairs emphasized adherence to market principles to maintain supply chain stability, noting its short-term irreplaceable advantages. Essentially, the rare earth competition has evolved into a contest of strategic endurance and industrial competitiveness, with core technologies and a complete industrial chain being the key to seizing the initiative amid surging demand from new energy and high-tech industries.

Recently, the price of yttrium oxide has surged 44 times in half a year, jumping from $6 per kilogram to $270 per kilogram, making it a focal point of global technological and geopolitical rivalry. The core drivers are the supply-demand imbalance: the explosive demand from the global high-tech sector has led to a 33% supply gap, while China’s inclusion of yttrium oxide in its export control list—given its 85% share of global production—has triggered a structural supply contraction. The game between China and the United States centers on the discourse power in the rare earth industry chain; the U.S. has a high level of dependence and faces difficulties in breaking the predicament in the short term. With breakthroughs in purification technology, the layout of recycled production capacity, and the leadership in formulating international standards, China has built a full-industry-chain advantage and significantly increased its share in rare earth value distribution.

Samarium oxide (Sm₂O₃) is the core raw material for high-performance samarium-cobalt (SmCo) permanent magnets. This paper briefly introduces the basic properties, preparation process and resource distribution of samarium oxide, emphasizes its three core roles in the preparation of SmCo permanent magnets—supplying samarium element through reduction conversion, regulating crystal structure and magnetic domain characteristics, and optimizing temperature stability and corrosion resistance—summarizes the main application scenarios of SmCo permanent magnets in aerospace, electronic information, high-end equipment manufacturing and other fields, discusses the development trends (such as process optimization and doping modification) and challenges (such as scarce resources and high cost) of samarium oxide and SmCo permanent magnets, and looks forward to their future application prospects in promoting the upgrading of high-end manufacturing.Samarium oxide (Sm₂O₃) is the core raw material for preparing high-performance samarium-cobalt (SmCo) permanent magnets. SmCo permanent magnets exhibit excellent performance and are widely used in high-end fields such as aerospace and electronic information. The purity and preparation process of samarium oxide directly determine the upper limit of the magnetic properties of SmCo permanent magnets.

Rare earth elements (REEs), often called "industrial vitamins" for their irreplaceable role in high-tech, defense, and green energy sectors, have become a pivotal geopolitical tool bridging two major global crises: escalating Sino-Japanese tensions over Taiwan and the intricate dynamics of Ukraine’s peace negotiations.In November 2025, Japanese Prime Minister Sanae Takaichi’s controversial claim that a "Taiwan crisis could trigger Japan’s collective self-defense" drew fierce backlash from Beijing. China responded by submitting the issue to the UN and imposing targeted economic countermeasures, laying bare Japan’s critical vulnerability: the nation relies on China for 90% of its REE imports, particularly heavy rare earths like dysprosium—essential for advanced electronics, EV motors, and military hardware. Haunted by the 2010 Diaoyu Islands dispute, where China’s REE export halt severely disrupted Japan’s supply chains, Tokyo has accelerated "de-China" efforts: partnering with France on REE smelting, exploring seabed mining near Minamitorishima, and securing alternatives from Kazakhstan and India.Parallelly, Ukraine’s peace talks are intertwined with REE geopolitics via a U.S.-backed deal: Washington gains access to Ukraine’s Zaporizhzhia REE deposits (rich in dysprosium and terbium) in exchange for sustained military aid. This move aims to weaken China’s dominance in the global REE supply chain—accounting for over 80% of global processing capacity—and secure resources for U.S. tech and defense. Meanwhile, Russia is investing $6 billion in a Siberian REE industry to reduce its own reliance on Chinese supplies.REEs serve as a unifying strategic thread across both crises. For Sino-Japanese relations, 2025 tensions follow a pattern of REE-driven friction: 2010’s export controls and 2025’s regulatory tightening have forced Japan into urgent diversification. For the U.S.-Ukraine-Russia triangle, REEs have become a bargaining chip in military and diplomatic maneuvering.As nations race to secure supplies, build domestic processing capabilities, and forge resource alliances, REEs have transcended their industrial function to shape international alliances and conflicts. Their mastery is no longer just an economic priority but a defining factor in 21st-century geopolitical supremacy, quietly reshaping the global power balance amid ongoing crises.

China’s Ministry of Commerce recently announced the suspension of planned export control measures on additional rare earth elements, a pragmatic adjustment that balances national security and global industrial needs. This move is by no means a reversal of its rare earth governance strategy but a refined optimization based on practical industrial realities.​Prior to this, China had built a full-chain regulatory system since October 2025, covering rare earth resources, core technologies and related equipment. The policies target preventing dual-use rare earth products from flowing into sensitive military fields and fulfilling international non-proliferation obligations. Notably, China’s controls have always focused on regulating rather than banning exports. It has streamlined approval processes for legitimate civilian trade, with over 60% of EU enterprises obtaining export licenses smoothly in the first half of 2025.​As the world’s top rare earth producer accounting for nearly 70% of global output and over 90% of processing capacity, this adjustment responds to global concerns about supply chain stability. Rare earths are indispensable for electric vehicles, semiconductors and wind turbines. The suspension eases worries of international manufacturers, especially European firms relying on stable supplies for green transition, allowing them to better plan production and investment.​China’s rare earth governance also adheres to environmental sustainability. Major production areas have invested heavily in ecological restoration to offset the environmental impact of mining and processing. Internationally, China has set up communication channels with partners like the EU to accelerate license reviews.​Looking ahead, China will maintain precise and targeted rare earth regulation. The suspension of new controls demonstrates its commitment to stable global supply chains. For foreign enterprises, complying with China’s regulatory framework and utilizing convenient approval channels will be key to securing stable supplies.

This summary outlines the transformative shifts in the global rare earth industry driven by policy adjustments, technological advancements, and surging downstream demand. In November 2025, China suspended six rare earth export control measures (valid until November 2026), resolving overseas inventory shortages and triggering a 15% price spike—with praseodymium-neodymium oxides rising from RMB 500,000 to 557,500 per ton. Complementing this, MIIT’s October 2025 compliance supervision plan cracks down on unlicensed production, concentrating capacity in leading enterprises and reinforcing supply-demand tightness. A 5.8% supply gap for praseodymium-neodymium oxides in 2025 (extending to 4.6% in 2026) further supports price stability. Technologically, breakthroughs in recycling—such as GEM’s 95.2% recovery rate production line and China Rare Earth’s 15,000-ton/year recycled project—have alleviated 15% of supply pressure, with recycled rare earths projected to reach 25% of the market. Demand is booming: global new energy vehicle penetration hit 35% amid expanded subsidies and the EU’s 2035 fuel car ban, while MIIT’s 2027 target of 100,000+ mass-produced humanoid robots drives explosive growth in high-performance neodymium-iron-boron demand. The industry chain presents multi-dimensional opportunities: short-term (3-6 months) policy dividends benefit leaders like Northern Rare Earth (70%+ light rare earth quotas, 50%+ export growth) and JLMAG (Tesla robot magnet supply deal); mid-term (1-2 years) sees NdFeB CR4 rising to 42% and 17.2% CAGR for high-performance variants; long-term (3-5 years) emerging sectors push 2030 global rare earth demand to 300,000 tons. Backed by these tailwinds, the industry is poised for a 3-year golden period, with resource-rich, tech-driven enterprises leading growth.

On November 1, 2025, the U.S.-China trade agreement on key minerals drew global attention, as China announced general export licenses for rare earths, gallium, germanium, antimony and graphite—lifting 2022-2025 export controls and suspending stricter October 2025 measures for a year. This adjustment reflects China’s sophisticated policy logic balancing national security, industrial development and global supply chain stability.​China’s strategic mineral regulation has evolved systematically: 2022 controls safeguarded resource security; April 2025 measures focused on high-end manufacturing-critical medium/heavy rare earths; October 2025 rules established full-chain supervision. The new general license system, however, is not a policy reversal but flexible optimization—retaining regulatory power while simplifying legitimate civil-use procedures, aligning with international dual-use item control practices.​Market responses validated policy rationality. Despite supply expectations, November 2025 medium/heavy rare earth prices rose (dysprosium oxide: 1.5625M yuan/ton; terbium oxide: over 6.6M yuan/ton) due to scarcity and booming high-end manufacturing demand. China’s rare earth ETFs grew 300% monthly, while overseas concept stocks corrected—underscoring China’s unshakable industrial edge (90% global smelting capacity, 1/3 lower costs via cascade extraction).​Looking ahead, China’s "controlling while opening up" principle aims for a "multi-polar supply + Chinese core" global chain. With the revised Mineral Resources Law in effect, China will advance resource circular utilization and 3nm rare earth tech, contributing to a more stable, mutually beneficial global strategic mineral ecosystem.​

As of late October 2025, the global rare earth industry has seen several key developments shaping its short- and long-term trajectory, detailed as follows:​On the policy and supply chain front, China’s new rare earth regulatory policy—scheduled to take effect on November 8—marks a notable expansion of control measures. It now covers five specific types of rare earths under export restrictions, introduces a new "extended technical supervision" rule (mandating approval for overseas enterprises that use Chinese technology to produce rare earth products), and enforces "case-by-case checks" for rare earth supplies used in 14nm-and-below semiconductor chips. In response, the U.S.-led Minerals Security Partnership (a coalition with Australia, Canada, etc.) has stepped up efforts to build alternative supply chains, including a recent procurement of 6 tons of scandium oxide. However, these efforts face delays due to long environmental approval processes and high production costs. Domestically, leading firm Northern Rare Earth has completed full compliance reviews of its overseas projects to align with the new policy.​In the market, rare earth concentrate prices have maintained a strong upward trend, with five consecutive increases throughout October. By late October, the average price reached 31,500 yuan per ton—representing a 37.2% quarter-on-quarter rise and the largest single-quarter gain since 2020. This price surge is driven by three key factors: robust demand growth (up 33% year-on-year, fueled by a 46% jump in new energy vehicle (NEV) production and 42% growth in wind power installed capacity), tight supply (with only an 8% increase in quarterly mining quotas paired with a 12% production cut from mine environmental upgrades), and rising production costs. The impact is already rippling to end markets: four major NEV manufacturers have announced price hikes for their models starting in January 2026. Looking ahead, industry forecasts suggest prices may continue to rise in the first quarter of 2026, as 2026 capacity expansion plans for both NEVs and wind power are set to exceed 40%.​Technologically, progress in high-performance rare earth applications has been notable. Juxing Permanent Magnet has successfully launched mass production of its 58SHT magnets, which break the industry’s "dual-15 threshold" (referring to key magnetic performance metrics at 150°C). These magnets not only reduce volume by 20% but also lower dependence on heavy rare earths—a critical cost and supply advantage. As a result, they have attracted strong interest from high-end clients in Europe and the United States, with planned applications in NEVs, low-altitude flight equipment, and aerospace sectors.​From an industry perspective, short-term dynamics are defined by the resonance between policy tightening and surging demand, which continues to enhance the strategic asset value of rare earths. In the long term, China’s dominant position—holding 70% of global rare earth patents and 90% of global smelting capacity—creates significant barriers to the rapid development of alternative supply chains. This shift has redirected market focus toward two key areas: enterprises’ ability to convert technological breakthroughs into mass production, and the establishment of compliant, stable supply chains.​

Component wear and corrosion have long plagued mechanical manufacturing by shortening equipment lifespan, but yttria (CAS: 1314-36-9), a rare earth oxide, emerges as a core protective material. As a white powder insoluble in water and alkalis but soluble in strong acids, it maintains structural stability in complex conditions, serving as a critical raw material for ceramics and optical glass while offering irreplaceable value in mechanical protective coatings.​Yttria coating powder’s strengths lie in three key traits: high-temperature resistance (withstanding over 1800℃, preventing metal base oxidation), wear resistance (reducing friction coefficient and wear rate by over 40% for gears), and strong corrosion resistance (extending chemical equipment components’ corrosion life by 2-3 times). Three mainstream preparation processes exist: chemical precipitation (low-cost but with uneven powder), sol-gel (high-purity over 99.9% but low-efficiency), and spray drying (efficient, continuous production but high equipment investment).

Technologically, breakthroughs reshape the industry. Xinlaifu’s self-developed SmFeN magnets (4th-gen) have a 470°C Curie temperature, 3x better corrosion resistance than traditional ones, and samarium oxide cost 1/50 that of neodymium oxide. A 100-ton/month production line is planned for 2025, with supply chain entry to Tesla and Huawei. Sinosteel Tianyuan mass-produces heavy-rare-earth-free 45H-T products (one of two global firms), stable at -60°C to 220°C for military/aerospace. Baotou’s grain boundary diffusion tech cuts high-end neodymium-iron-boron magnet costs by 25%, boosting new energy vehicle motor efficiency to 97.5% and reducing wind power O&M costs by 3 million yuan/unit.