Rear Earth Element
The export control policies on rare earth elements implemented this April have brought unprecedented challenges to the entire NdFeB magnetic materials industry. As practitioners, we are experiencing the growing pains of this policy adjustment. Let me provide a detailed analysis of the actual difficulties we currently face.
I. Core Policy Restrictions
These controls involve seven key rare earth elements: Samarium (Sm), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), Lutetium (Lu), Scandium (Sc), and Yttrium (Y). The most stringent requirement is that the total content of these elements must not exceed 0.1%. Behind this seemingly simple number lies enormous implementation challenges.
II. Three Major Pain Points in Production Processes
1. Residue Issues in Smelting Process
Our smelting furnaces function like “memory devices.” After producing a batch of N42UH products containing Tb, even if we immediately switch to producing N42SH products without controlled elements, the furnace walls and refractory materials still retain about 0.3-0.5% of heavy rare earth elements. More troubling is that these residues gradually release over subsequent production batches, affecting the composition of the next 5-7 batches.
Additional note: Since smelting furnaces must maintain a vacuum or inert gas environment, physical cleaning is impossible. This residue issue is a long-standing characteristic of the industry’s processes.
2. Hidden Contamination in Hydrogen Decrepitation Process
In the hydrogen decrepitation process, powder accumulated in equipment corners acts like “time bombs.” Our measurements show that during continuous production transitions, the residual Dy content inside hydrogen decrepitation equipment can reach 0.15-0.25%. These residues mix with new materials through airflow, causing final products to exceed standards.
Additional note: Rare earth hydrides formed during hydrogen decrepitation have strong adhesion properties. Conventional cleaning methods can only remove about 70% of the residue.
3. Cross-Contamination in Jet Milling Systems
The pipeline system in jet milling is another critical area. Even after routine cleaning between batches, fine powder adhering to pipeline walls and classifier wheels still causes 0.05-0.1% contamination. Most frustrating is that this contamination has a cumulative effect—the more batches produced, the worse the problem becomes.
Additional note: Ultrafine particles <10μm are prone to electrostatic adsorption, making complete removal with current technology difficult.
III. New Challenges in Raw Material Procurement
1. Changes in Purity Requirements
Previously, due to the similar magnetic properties of PrNd and elements like Sm/Gd, the industry generally accepted raw materials with 99.5% purity (containing about 0.1-0.3% Sm). Under the new regulations, the total content of the seven controlled elements must be <0.1%, forcing companies to seek higher-purity raw materials.
- Elevated Testing Standards
Now, every batch of raw materials requires complete elemental analysis. Our lab’s ICP-MS equipment operates almost around the clock. More troublesome is the significant variation in impurity content from different mineral sources—sometimes, different batches from the same supplier can show a fivefold difference in Sm content.
IV. Real-World Difficulties in License Applications
1. Prolonged Waiting Periods
From document preparation to final approval, the process takes an average of 35-40 calendar days. Our recent order to Germany nearly missed its delivery deadline due to waiting for the license. While expedited applications are possible, the success rate is less than 30%.
2. Restrictions on Sensitive Regions
Certain specific countries and regions are almost impossible to get approved. We have a long-term customer in India who can no longer receive shipments of high-Hcj products (i.e., UH grade and above) because we cannot obtain the necessary export licenses.
V. Objective Impacts on the Industry
1. New Challenges in Customer Relations
Some overseas customers are extremely perplexed by China’s control measures and are genuinely frustrated and anxious about being unable to obtain the products they need under these restrictions.
2. Adjustments in Product Mix
High-end product orders have significantly decreased. UH series products, which previously accounted for 35% of our business volume, have seen a nearly 50% decline in the past three months. Customers are increasingly opting for SH series products with slightly lower performance but free from export controls.
These are the real challenges our industry is currently facing. Each issue profoundly affects the survival and development of enterprises. We are striving to adapt to the new policy environment, but this process is inevitably difficult.
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