China's exports of key rare earth elements to Japan were negligible in June, continuing a trend driven by diplomatic tensions. The controls impact Japan's significant rare earth magnet sector, raising concerns about critical mineral access and the broader Japanese economy.
China's continued throttling of rare earth exports to Japan highlights Beijing's use of critical mineral supply chains as a diplomatic tool, impacting key industrial sectors in Japan and raising global concerns about resource security and geopolitical leverage.
China's exports of strategically important, controlled rare earths and minerals to Japan were minimal in June, continuing a trend influenced by diplomatic tensions between the two nations. Customs data released on Monday showed that China sent no gallium, dysprosium, terbium, or yttrium to Japan last month, extending the impact on raw material supply chains.
Japan possesses the world's largest rare earth magnet sector outside of China but depends on Chinese sourcing for some essential inputs. Exports of these controlled metals have been significantly throttled for several months, particularly after comments made by Japanese Prime Minister Sanae Takaichi regarding Taiwan in November led to a diplomatic rift. China introduced export controls on specific types of heavy rare earths and the magnets they contain in April 2025, and subsequently tightened these controls on exports to Japan multiple times in early 2024.
Japanese companies have expressed concerns about access to critical minerals, warning that the situation is beginning to affect the broader Japanese economy. China's export controls are seen as a powerful diplomatic lever, leveraging its dominant position in critical mineral supply chains. These controls have also been a topic in recent discussions with U.S. President Donald Trump.
Exports of gallium, a metal used in chip and magnet manufacturing, to Japan fell back to zero in June, following a brief respite with a larger shipment in May. Shortages related to export controls on yttrium, a rare earth used for protecting turbine blades in aircraft engines and power plants, have also impacted the market. China exported no yttrium to Japan in June, and the United States, a significant destination for Chinese rare earth exports prior to the restrictions, also received none for the second consecutive month.
Despite the restrictions on specific elements to Japan, China's overall exports of rare earth magnets remained strong in June, with 5,649 metric tons exported, an increase from 4,730 tons in May.