Weekly News Review October 19 – October 25 2026

The EU wants to take a more active role in securing critical raw materials. China, meanwhile, is tightening its export controls as shipments of dysprosium and terbium decline sharply. Changes are also on the horizon in China’s rare earth industry. Read more in our latest weekly roundup.

EUROPEAN PARLIAMENT CALLS FOR STRONGER INTERVENTION IN RAW MATERIALS MARKETS:

New agency, equity investments, and a multibillion-euro fund: MEPs seek broader instruments to secure Europe’s raw materials supply.

The European Parliament wants to significantly expand the Critical Raw Materials Act (CRMA), the cornerstone of EU raw materials policy (PDF). A previously planned raw materials center is to be established as an independent EU agency with additional powers. Alongside coordinating joint raw materials purchases and managing strategic stockpiles, the agency could also acquire direct equity stakes in raw materials companies. Such interventions would even be possible in the event of potential takeovers that could seriously jeopardize the EU’s security of supply. The agency would have to consult its Governing Board and seek its approval.

MEPs are also calling for a Critical Raw Materials Fund with an initial EU contribution of €2 billion. In the event of sharp price increases, supply disruptions, or artificially low prices set by dominant suppliers, the European Commission could introduce temporary support measures if European companies or raw materials projects were at risk. The Commission is also considering export restrictions on scrap and waste from permanent magnets. In addition, labeling and information requirements for permanent magnets could be extended to other products, such as hard disk drives, loudspeakers, and civilian drones, to facilitate recycling.

Existing Instruments, New Powers:

Joint raw materials purchasing and the coordination of strategic stockpiles were already provided for under the CRMA, which entered into force in 2024. With its RESourceEU action plan, the European Commission also announced plans for a European raw materials center in late 2025. Equity financing is already being used to support raw materials projects. Parliament now wants to bring these approaches together within an independent agency and expand its powers, particularly regarding corporate takeovers that could threaten supply security.

The initiative comes against a backdrop of slow progress toward the EU’s raw materials targets, as the European Court of Auditors criticized earlier in 2026. Parliament adopted its position with 470 votes in favor. Negotiations with EU member states are next.

CHINA RELEASES SEPTEMBER EXPORTS DATA FOR CRITICAL RAW MATERIALS:

On September 20, Chinese customs authorities released data on foreign trade in critical raw materials and components made from them. Export trends varied significantly by product group, while magnet exports remained relatively stable.

GALLIUM AND GERMANIUM:

The customs data for September once again show the strong monthly fluctuations in exports of the two technology metals.

After a sharp decline in August, China’s gallium exports rebounded in September. According to the latest data from Chinese customs, 2,030 kilograms were shipped abroad – 480 percent more than in the previous month. However, exports remained well below the previous year, when China exported 5,000 kilograms.

Japan was the largest recipient, receiving 1,000 kilograms. China had tightened its export restrictions on the island nation’s military sector in January 2026. Although civilian exports officially remain possible, Japan has received significantly less gallium from China since then than in 2025. However, it shipped a larger quantity there in May.

Vietnam received another 830 kilograms, and Malaysia 200. Germany, one of the largest customers so far this year, received no material, as in August.

Germanium showed a contrasting trend: After reaching a high of 2,769 kilograms in August, only 573 kilograms were traded in September – a decline of approximately 79 percent. However, compared to September 2025, this represents an increase of almost ten percent.

Germany was the largest buyer with 300 kilograms, followed by Russia with 232 kilograms. 

The latest figures once again underscore how significantly China’s exports of both metals fluctuate from month to month. Export controls, which the country introduced in August 2023 citing the potential military use of the raw materials, play a key role. Since then, shipments abroad have required official approval.

TERBIUM AND DYSPROSIUM:

According to the latest data from Chinese customs, dysprosium exports declined significantly in September. South Korea was the only recipient, receiving 357 kilograms, roughly the same amount as in August. Overall, exports fell by more than 50 percent compared to the previous month. In September 2025, shipments had still totaled 18,043 kilograms.

Exports of terbium, which, like dysprosium, is used to improve the performance of permanent magnets, also declined. After 2,251 kilograms in August, China shipped only 839 kilograms abroad in September. Vietnam was the main recipient, while 80 kilograms of terbium oxide were exported to Japan.

Both elements remain subject to the Chinese export controls introduced in April 2025, which require official approval for shipments abroad. Beijing partly justifies the measures by citing the potential military applications of rare earth elements.

RARE EARTH MAGNETS:

Chinese exports of rare earth magnets increased significantly in September. After 5,011 tonnes in August, China exported around 6,165 tonnes in September, a 23 percent month-on-month increase. South Korea overtook Germany as the largest recipient, followed by Germany, the United States, Vietnam and India.

Exports since the beginning of the year have thus reached around 48,057 tonnes, nearly 20 percent more than in the same period last year. The increase is mainly due to the second quarter, when China’s magnet exports fell sharply in 2025 after the introduction of export controls.

USA: PHOENIX TAILINGS PLANS $375 MILLION RARE EARTH REFINERY:

The proposed plant in New York state would be one of the world’s largest rare earth separation facilities, the company says. It is designed to produce more than 4,400 tonnes of separated rare earth oxides annually.

Phoenix Tailings is expanding its U.S. rare earth processing capacity. The company already produces rare earth metals and alloys in Massachusetts and New Hampshire. It now plans to invest around $375 million in a new separation plant in Rochester, New York. Production is expected to ramp up in 2027, with full capacity targeted for 2028.

The plant is designed to process more than 18,000 tonnes of mined and recycled feedstock a year. Phoenix aims to recover over 4,400 tonnes of separated rare earth oxides and then convert them into metals at other sites. At full capacity, the facility would be one of the world’s largest rare earth separation operations, the company says. Phoenix says its proprietary technology generates no toxic by-products or direct CO₂ emissions.

Closing a Key Gap in the U.S. Supply Chain:

The new facility is part of Phoenix’s Freedom Project, which involves more than $1.2 billion in investment. The initiative aims to close a key gap in domestic processing by adding rare earth separation and metal production capacity. China is even more concentrated in the downstream stages of the rare earth supply chain than in mining. The U.S. Department of Defense has issued a conditional $500 million loan commitment for the project.

Other industry players are also building out the U.S. rare earth sector. MP Materials, the country’s largest producer of these critical raw materials, already manufactures neodymium-praseodymium metal in Texas and plans to expand its magnet-making capacity. North American companies including ReElement, REalloys and Ucore are developing new facilities for various stages of processing.

CHINA TIGHTENS EXPORT CONTROLS:

New restrictions on machinery and technologies, along with revised customs procedures, could also affect the raw materials sector.

China has announced new export control measures for dual-use goods, which can serve both civilian and military purposes. The measures cover drones, tunnel boring machines and specialized excavators, as well as certain dredger components. Some of this equipment is also used in mining, for example, to develop mineral deposits. Potential military applications include building underground facilities and naval bases.

Exports of certain tunnel boring machines, walking excavators and shotcrete machines to what the Chinese Ministry of Commerce describes as “sensitive countries and regions with which China has disputes” will require export licenses. The announcement does not specify which countries are affected. Simplified procedures will apply to other destinations.

Beijing has also revised its customs inspection procedures for potentially controlled dual-use goods, describing the changes as an optimization of existing rules. If customs authorities believe goods declared without an export license may be subject to controls, they can temporarily halt the shipment and request additional documentation.

The provisions also apply to cross-border e-commerce, postal and express shipments, and goods carried in passenger luggage. Specific deadlines for inspections have also been established. The rules took effect on October 19 and also cover raw materials already subject to export controls, such as gallium, germanium and certain rare earth elements. No additional raw materials have been added to the control list under these provisions. The other measures will take effect on November 18.

CHINA: SHENGHE PLANS TO SELL STAKES OF RARE EARTH PROCESSING TO STATE-OWNED GROUP:

A China Rare Earth Group subsidiary would acquire majority stakes in four processing companies.

Chinese rare earths group Shenghe Resources plans to sell parts of its processing business to a subsidiary of state-owned China Rare Earth Group. The proposed transaction covers 51% stakes in four subsidiaries, Shenghe said on Monday. The total purchase price is expected to be around $248 million to $271 million.

Other business lines at one of the four companies are to be carved out before the sale. The board has already approved the proposal. Before the transaction can close, the parties must agree on the final purchase price and obtain shareholder approval, among other conditions.

Media reports in September suggested that talks had been held on a possible takeover of Shenghe. The company denied the rumors.

The Chinese state already influences Shenghe through its largest shareholder, a government research institute. The proposed sale would bring additional processing capacity under China Rare Earth Group’s control. The announcement does not yet indicate how production, prices or international supply relationships might change.

The potential impact on MP Materials, which operates the Mountain Pass mine in California, also remains unclear. Shenghe holds around 3% of the largest rare earth producer in the US. A takeover of Shenghe as a whole would also place that holding indirectly under China Rare Earth Group’s control. The current announcement, however, contains no plans to transfer that stake.