Editor's Note
This editor’s note highlights the key facts and market implications behind “Which Japanese and Overseas Companies Are Develo”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
Vietnam Rare Earth (VTRE) has reached an agreement with Australian Strategic Materials (ASM) and Blackstone Minerals on integrated REE value chain development.
Which Japanese and overseas companies are developing the rare earth substitute magnets that the United States wants so badly it can't wait to get its hands on them?
AI Overseas Market Research
Utilizing Gemini 3 research activities.
Humanoide.
Rare Earth Export Regulations
» 2025/06/06
Latest legal follow-up as of 2026/1/7.
The Chinese government yesterday initiated strict export control measures against Japan. This includes a comprehensive set of export bans related to rare earths, robots, drones, and more. This report, compiled and uploaded today, is fresh and comprehensively covers the target industries, so we recommend reading today's attached report (report) first.
China's export ban on dual-use items and rare earths to Japan. AI analyzes Chinese government materials to thoroughly analyze supply chain disruptions for Japan. Civilian robots and drones are also targets (amendment) (2026/1/7).
Related reports are gathered in the "Rare Earth Export Regulations" category.
Survey Report Summary: China’s Rare Earth Export Regulations and the Movements of Rare Earth Magnet Substitute Material Development Industries (Japanese and Overseas Industries)
I. Executive Summary
The world's high-performance magnet market faces direct vulnerability in the supply chain because the mining and processing of rare earth elements (REEs) are concentrated in China. Recent and potential future export regulations by the Chinese government on key REEs (Praseodymium, Dysprosium, Terbium, Samarium, etc.) pose a direct threat to industries in Europe and the US, particularly robotics, electric vehicles (EVs), renewable energy, and defense.
This report identifies and analyzes companies in the United States, Europe, Israel, Japan, and other Asian countries (excluding China) that are aggressively developing and commercializing magnet technologies to reduce or eliminate dependence on these regulated REEs.
Key alternative technology pathways include high-performance ferrite magnets, manganese-based compounds (MnBi, MnAlC), nitride (FeN) magnets, and L10 FeNi (tetrataenite). Furthermore, innovations in electric motor design, such as synchronous reluctance motors and switched reluctance motors, also provide pathways to reduce REE dependence.
In specific regions, government initiatives (such as the US's ARPA-E, the EU's Horizon Programme (e.g., PASSENGER)) are driving the emergence of major innovation hubs and companies.
The strategic need to diversify the magnet supply chain is driving investment and R&D, but challenges remain regarding the performance parity, cost competitiveness, and scalability of REE substitute materials. Countering China's REE dominance requires a multifaceted approach, not just replacing a single material, but encompassing the discovery of new materials, improvement of existing non-REE materials, and redesign of end-use applications (e.g., motors) to accommodate different magnetic characteristics. This situation suggests the possibility of not expecting a direct drop-in replacement for NdFeB (neodymium-iron-boron) magnets in all applications, but rather the necessity of utilizing the strengths of various substitute magnets. This could potentially lead to the formation of a more robust magnet market that is more fragmented but potentially stronger.
II. The Geopolitics of Magnetism: China's Rare Earth Export Regulations and the World's Response
A. China's Dominance in the Rare Earth Supply Chain and Its Strategic Impact
China holds a dominant position in the world's REE production (61% of mining, 92% of processing) and magnet manufacturing (90-92%), creating a major strategic vulnerability for national security industries. This dominance approaches nearly 100% for specific heavy rare earths indispensable for high-performance magnets.
The strategic importance of REEs is emphasized by their use in "dual-use" technologies applicable to both civilian and military sectors, such as advanced robots, EVs, wind turbines, fighter aircraft, missiles, and drones. Historically, China has "weaponized" REE exports, as seen in 2010 against Japan, demonstrating its willingness to exercise this influence.
B. Analysis of Current and Potential Export Regulations
Source: Read the original article | Published: June 06, 2025