Weekly News Review June 22 – June 28 2026

New developments in China’s trade restrictions, a shift in the ownership structure of Vacuumschmelze, and a wealth of fresh data made Calendar Week 26 anything but a slow summer week. As the week comes to a close, here is our roundup of the most important stories and insights.

CHINA: EXPORT DATA FOR THE MONTH OF MAY RELEASED –

On Monday, China’s customs authorities released a new set of foreign trade data covering critical raw materials and components manufactured from them. One notable development concerns gallium: Japan received its first shipment from China since the introduction of stricter export controls.

DYSPROSIUM AND TERBIUM EXPORTS DECLINE IN MAY:

Beijing’s export restrictions continue to shape trade flows for the two heavy rare earth elements.

China’s dysprosium exports declined in May after the strong rebound seen a month earlier. According to customs data, 8,483 kilograms were exported, down from 11,046 kilograms in April. South Korea remained by far the largest destination, receiving 8,463 kilograms, while small quantities were shipped to Slovenia and Singapore.

Terbium exports also eased further. A total of 400 kilograms left the country in May, compared to 500 kilograms in April. South Korea imported 350 kilograms, with the remaining material destined for Hungary, Slovenia, and Singapore.

Compared with May 2025, exports of both heavy rare earths increased from zero. China had introduced export controls on dysprosium and terbium in early April 2025, effectively halting overseas shipments for the remainder of that month and into May while the new licensing regime was implemented. Despite the recent resumption of exports, shipments of dysprosium and, especially, terbium remain far below historical levels.  

Both dysprosium and terbium are essential heavy rare earth elements that enhance the heat resistance and performance of high-performance permanent magnets, making them critical for electric vehicles, wind turbines, and defense applications.

GALLIUM AND GERMANIUM: EXPORTS RISE IN MAY:

After a sharp decline in April, exports increased again in May. Japan also received the first shipment of Chinese gallium since stricter export controls were introduced.

Following a dramatic drop in April, China’s exports of gallium and germanium rose significantly again in May. This is shown by the latest figures from the country’s customs authority.

In total, China exported 6,200 kilograms of gallium in May. This marks a recovery after the April slump, when only three kilograms were exported. The May figure also aligns with the levels observed in the first three months of the year, when monthly shipments ranged from 5,000 to 6,000 kilograms. However, the year-on-year comparison still shows a stark contrast: in May 2025, China did not export any gallium.

Of the 6,200 kilograms exported in May, the vast majority, 6,000 kilograms, went to Japan. This marks Japan’s first receipt of Chinese gallium this year. Due to diplomatic tensions, China introduced stricter export controls targeting Japan’s military sector in January. In practice, however, these measures also affected supply chains in other industrial sectors.

The remaining 200 kilograms of gallium were shipped to Malaysia, the only recipient in April.

Germanium exports also rebound:

Germanium exports also saw a strong increase in May. China exported a total of 1,134 kilograms of this technology metal, compared to just two kilograms in April. Year-on-year, exports also rose significantly, up 68% compared to May 2025.

The bulk of Germanium exports in May, 1,042 kilograms, went to Russia. The country has consistently been one of the main buyers in previous months. Smaller quantities were shipped to Germany, Turkey, Australia, and Italy.

Gallium and germanium are critical technology metals used in a wide range of civilian and military applications, including semiconductor production. As the dominant global producer, China placed strict export controls on both materials in mid-2023. Since then, trade flows have fluctuated significantly and often depend on the current political relationships with importing countries.

Of the 6,200 kilograms exported in May, the vast majority, 6,000 kilograms, went to Japan. This marks Japan’s first receipt of Chinese gallium this year. Due to diplomatic tensions, China introduced stricter export controls targeting Japan’s military sector in January. In practice, however, these measures also affected supply chains in other industrial sectors.

RARE EARTH MAGNET EXPORTS:

Shipments of the high-tech components declined modestly in May but remained well above last year’s levels.

China’s exports of rare earth magnets eased in May, according to the latest customs data. After reaching 5,126 metric tons in April, exports fell to 4,730 tons in May, a decrease of roughly 8 percent month-on-month.

The leading destinations in May 2026 were Germany, South Korea, the United States, Vietnam, and India. These markets remained largely consistent with April, though minor shifts in ordering reflected short-term procurement cycles rather than structural changes in demand.

Despite the monthly decline, volumes remain significantly elevated compared with last year. In May of the previous year, China exported only 1,238 tons. This disruption was triggered after China introduced export controls on certain heavy rare earth elements in April 2025. The measures affected key inputs such as dysprosium and terbium, which are essential for high-performance magnets used in electric vehicles, wind turbines, and advanced electronics. In the aftermath, exporters reported delays and additional compliance checks on the composition of exported magnets, which continued to affect shipment timing into 2026.

CHINA TIGHTENS EXPORT CONTROLS AGAINST 10 US COMPANIES:

Beijing prohibits the supply of Chinese dual-use goods to, among others, MP Materials and USA Rare Earth. The implications for the development of alternative rare earth value chains remain to be seen.

China has added 10 additional U.S. companies to its export control list, immediately banning the export of dual-use goods to them. This also applies to indirect shipments routed through third countries. The measure was announced on Monday by the Chinese Ministry of Commerce. The decision affects, among others, MP Materials and USA Rare Earth, which in recent months have received U.S. government funding to build a domestic rare earth supply chain. The move may be a response to a recent comparable U.S. action targeting several Chinese companies with alleged military links, Reuters reports.

The expansion of the list is justified on national security grounds, as with previous export restrictions on dual-use goods, which can be used in both civilian and military applications. These include critical raw materials such as gallium, germanium, and certain rare earth elements, as well as some of their compounds, processing equipment, and end products such as permanent magnets.

With Monday’s announcement, the existing rules, under which export licenses were previously required for the companies in question, have effectively been tightened into a full export ban. According to Reuters, the measure is largely symbolic. Given their ties to the U.S. government and the U.S. defense industry, the companies would in any case have had very limited operations in China. However, the impact of the export ban on the development of independent rare earth value chains remains uncertain, given China’s dominant position in this sector.

The two countries have been engaged in a trade conflict for years, characterized by periods of escalation and intermittent de-escalation.

GERMANY: ENERGY FUELS TO ACQUIRE VACUUMSCHMELZE:

Deal volume of nearly two billion dollars; Western mine-to-magnet strategy gains momentum.

At Vacuumschmelze, a change of ownership now appears imminent. Energy Fuels plans to acquire Vacuumschmelze, a German magnet manufacturer, from investment firm Ara Partners. The proposed transaction has a value of approximately $1.9 billion and is expected to close in early 2027, subject to customary regulatory approvals.

According to the company, the deal is intended to build an integrated Western supply chain for rare earths—from raw materials and separation through metals and alloys all the way to finished permanent magnets. This strategy aligns with the previously announced acquisition of Australian Strategic Materials (ASM), which operates a rare earth metals and alloys facility in South Korea and has another planned in the United States.

VAC would thereby complete the downstream segment of the supply chain and bring decades of expertise in producing magnets based on neodymium-iron-boron and samarium-cobalt, as well as manufacturing sites across Europe, North America, and Asia. The brand, corporate identity, and headquarters in Hanau, Hesse, are expected to remain intact according to Energy Fuels.