China Rare-Earth Exports to Japan Plunge 51% as Dysprosium and Terbium Shipments Hit Zero

Highlights

• China's rare earth exports to Japan dropped 51% year-over-year in H1 2026, with June shipments plunging 81%
• Dysprosium, terbium, and yttrium shipments to Japan hit zero in June 2026, confirmed by both Nikkei and Reuters citing Chinese customs data
• Japan's rare earth magnet industry, the largest outside China, faces critical upstream exposure despite formidable manufacturing capability
• China continued exporting 5,649 metric tons of rare earth magnets globally in June, revealing a targeted disruption rather than a broad export halt
• Japan is accelerating supply diversification, with Australia's Lynas Rare Earths already producing dysprosium and terbium outside China

As Rare Earth Exchanges® reports ongoing, the heavy rare earth squeeze gets heavier. China’s exports to Japan of seven controlled rare-earth categories fell 51% year-over-year in the first half of 2026, versus a 16% global decline, according to Nikkei-reported Chinese customs data republished by The Standard (opens in a new tab). June shipments plunged 81%, while dysprosium and terbium reportedly remained at zero. Reuters independently reported zero June shipments of dysprosium, terbium, and yttrium to Japan.

REEx Insight | Beijing Is Squeezing the Bottleneck, Not Closing the Mine

The headline is accurate—but understates the strategic point. Dy and Tb are small-volume materials with outsized importance for high-temperature NdFeB magnets used in EVs, robotics, and defense. Japan has formidable magnet manufacturing capability, yet remains exposed upstream. Rare Earth Exchanges continues to report that the squeeze was already driving Japanese investment into alternative heavy-REE supply. This is precisely why counting total “rare-earth exports” can mislead investors. A few missing tonnes at the right chokepoint can matter more than thousands of tonnes elsewhere.

Multiple Sources

Reuters provides a separate confirmation based directly on Chinese customs data. In a July 20 report, Reuters said China shipped no dysprosium, terbium, or yttrium to Japan in June 2026—and also no gallium—extending what it described as several months of sharply restricted flows. Reuters emphasized the industrial significance: Japan operates the largest rare-earth magnet industry outside China, yet remains dependent on Chinese supply for several critical inputs. The contrast is particularly revealing because China still exported roughly 5,649 metric tons of rare-earth magnets globally in June, up from 4,730 tons in May. In other words, this was not evidence that China's entire rare-earth export machine had stopped; the customs data point instead to a highly concentrated disruption in strategically important materials reaching Japan.

What’s Not Stated

The Standard piece suggests Beijing’s pressure may encourage Japanese businesses to seek warmer China relations. That is interpretation, not a demonstrated outcome. The opposite response is also visible: Japan is accelerating diversification. Australia’s Lynas Rare Earths (opens in a new tab) is already producing Dy and Tb outside China.

Media Ownership

The Standard is owned by Hong Kong-listed Sing Tao News Corporation (opens in a new tab). As of year-end 2025, Kwok Hiu Ting and Karson Choi each held 14.20%, while Kwok serves as CEO and her father, Kaisa founder Kwok Ying Shing, is co-chairman. That ownership context does not invalidate the reporting—but investors should know the provenance.