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Lanthanide contractionSolvent extraction cascadeIonic clay heaviesMagnet makingExport controls

Fifteen elements that are chemically almost the same element repeated fifteen times. Telling them apart is the entire industry, and it is a plant problem rather than a geology one.

10.1Fifteen elements that are almost one element

The lanthanide contraction means adjacent lanthanides differ in ionic radius by roughly one per cent, all sit in the +3 state, and all behave nearly identically.

In plain English

Separation relies on solvent extraction exploiting a partition coefficient that differs by a few per cent per stage — which requires hundreds to over a thousand mixer-settler stages in cascade to reach magnet purity, taking years to commission and tune.

10.2Ore to magnet, five steps

  • 1 · Ore. Bastnäsite (REE)CO₃F for light rare earths, from Bayan Obo and Mountain Pass. Monazite (REE)PO₄, often thorium-bearing, which brings radiological handling into scope. Ionic adsorption clay in southern China and Myanmar — the main source of heavy rare earths including Dy and Tb.
  • 2 · Cracking. Acid roast at 400–500 °C, or caustic cracking for monazite. Purpose: convert an insoluble mineral into soluble salts.
  • 3 · Separation — the actual barrier. Counter-current solvent extraction with organophosphorus extractants, hundreds of stages. This is the step almost nobody outside China operates at scale.
  • 4 · Oxide to metal. Molten salt electrolysis of Nd₂O₃ in NdF₃–LiF at ~1,050 °C, or calciothermic reduction → NdPr metal.
  • 5 · Metal to magnet. Strip-cast alloy → hydrogen decrepitation → jet mill to 3–5 µm → align in a field and press → sinter → machine → nickel-plate → magnetise. And, for high-temperature grades, grain boundary diffusion of Dy or Tb.

10.3Concentration increases at every step

70 %Miningbastnäsite, monazite, ionic clay90 %Separationsolvent extraction, hundreds of stages92 %Metal makingmolten salt electrolysis93 %Magnet makingsinter, machine, coat, GBDCHINA SHAREConcentration increases at every step downstream — the opposite of what intuition suggestsMining is the least concentrated stage and the one everyone discusses. Magnet manufacture is the mostconcentrated and the one that actually stops a motor line.
Figure 10.1Mining is the least concentrated stage and the one everyone talks about. Magnet manufacture is the most concentrated and the one that actually stops a motor line.

Important

China mines roughly 70 per cent of world rare earth oxide, separates around 90 per cent, and makes over 90 per cent of the world’s sintered NdFeB magnets.

Each stage downstream is more concentrated than the one before it — the clearest illustration in this series of where leverage actually lives. Mining is the least concentrated stage and the one everyone discusses; magnet manufacture is the most concentrated and the one that actually stops a motor line.

10.4Current status, and it has a deadline

10.4.1Two separate regimes

China’s April 2025 controls, MOFCOM Announcement No. 18, placed seven medium and heavy rare earths and their derivatives under non-automatic export licensing — including dysprosium and terbium, the elements that make a magnet survive a hot rotor. Those controls have never been suspended.

A broader October 2025 package, Announcement No. 61, added more elements, processing equipment, and extraterritorial provisions reaching foreign-made goods containing Chinese-origin rare earth content. That package was suspended until 10 November 2026 following US–China talks.

Licences under the April regime routinely take 60 to 120 days, flows have been uneven between destinations, and further controls were applied to Japan in January 2026. Plan on the basis that the April regime is permanent and that November 2026 is a live cliff edge.

Quick check: test yourself

1.Why does a rare earth separation plant take most of a decade?

Show answer
Because magnet-grade purity needs hundreds to over a thousand counter-current mixer-settler stages in cascade, each exploiting a partition coefficient that differs by only a few per cent — and that cascade has to be commissioned and tuned as a system. It is a chemical plant the size of a refinery, and it is the step almost nobody outside China operates at scale.

2.Where do the heavy rare earths that matter for hot rotors come from?

Show answer
Ionic adsorption clays in southern China and Myanmar, which are the principal source of heavies including dysprosium and terbium. Bastnäsite supplies light rare earths and monazite is often thorium-bearing, which adds radiological handling — so the heavies are both the scarcest and the most geographically concentrated part of the chain.

3.Which Chinese export-control measure should a magnet buyer plan around?

Show answer
Both, differently. The April 2025 regime covering seven medium and heavy rare earths including Dy and Tb has never been suspended and should be treated as permanent, with licences routinely taking 60 to 120 days. The broader October 2025 package is suspended only until 10 November 2026 — a pause with an expiry date, not a repeal.

Chapter summary

Frequently asked questions

Why is separating rare earths so much harder than mining them?+

Because of the lanthanide contraction. Across the series, 4f electrons shield the nuclear charge poorly, so effective nuclear charge climbs and the ions contract from La³⁺ at 103 pm to Lu³⁺ at 86 pm — meaning adjacent neighbours differ by roughly one per cent in ionic radius while sharing the same +3 oxidation state and outer configuration. Separation therefore relies on solvent extraction with a partition coefficient that differs by a few per cent per stage, requiring hundreds to over a thousand mixer-settler stages in cascade.

Where does China’s leverage in rare earths actually sit?+

Downstream, and it increases at every step. China mines roughly 70 per cent of world rare earth oxide, separates around 90 per cent, and makes over 90 per cent of the world’s sintered NdFeB magnets. Mining is the least concentrated stage and the one everyone talks about; magnet manufacture is the most concentrated and the one that actually stops a motor line.

What is the current export-control position?+

China’s April 2025 controls, MOFCOM Announcement No. 18, placed seven medium and heavy rare earths and their derivatives under non-automatic export licensing — including dysprosium and terbium, the elements that make a magnet survive a hot rotor. Those controls have never been suspended. A broader October 2025 package added more elements, processing equipment and extraterritorial provisions, and that package was suspended until 10 November 2026 following US–China talks. Licences under the April regime routinely take 60 to 120 days. Plan on the basis that April is permanent and November 2026 is a live cliff edge.

Where do heavy rare earths like dysprosium come from?+

Mainly ionic adsorption clays in southern China and Myanmar, which are the principal source of heavy rare earths. Bastnäsite from Bayan Obo and Mountain Pass supplies light rare earths; monazite is often thorium-bearing, which brings radiological handling into scope and is a significant part of why some deposits stay undeveloped.

Reviewed by

SG

Sahil Goyal

Co-founder, Wingzman

LinkedIn
SG

Sourabh Goyal

Co-founder, Wingzman

LinkedIn

Ore to Vehicle is an original educational series on the battery and EV materials supply chain. Country shares, grades, prices and policy status are approximate, drawn from public reporting as of mid-2026, and move year to year — treat them as orders of magnitude rather than as a ledger, and verify before relying on them commercially.