China recorded zero shipments of gallium, dysprosium, terbium, and yttrium to Japan in June 2026, extending a months-long export halt of critical minerals that has effectively severed supplies to the world's largest rare earth magnet market outside China, according to Chinese customs data cited by Reuters. The export freeze, which has been in place since approximately December 2025 with the exception of limited yttrium shipments, stems from a sharp deterioration in Sino-Japanese diplomatic relations following comments by Japanese Prime Minister Sanae Takaichi on Taiwan. Beijing responded by imposing sweeping export controls on a range of strategic minerals, cutting off Japan's access to key inputs for its high-value manufacturing sector.
The four minerals at the centre of the dispute play critical roles across multiple advanced technology sectors. Gallium is an essential material in semiconductor manufacturing and magnet production, while dysprosium, terbium, and yttrium are indispensable inputs for high-performance permanent magnets used in defence systems, electric vehicles, renewable energy infrastructure, and a broad range of other advanced technologies. The June trade figures also reveal that the United States received no shipments of the same four minerals for a second consecutive month.
This is particularly notable given that China had reportedly lifted its ban on gallium exports to the US late last year, suggesting the supply disruption to American industry remains unresolved in practice. The ongoing export restrictions highlight China's dominant position in global rare earth supply chains. According to Mining.com.au, China produces more than half of the world's rare earth supply and accounts for the majority of global rare earth processing capacity, granting Beijing considerable leverage over the availability of critical minerals that underpin defence, electronics, and clean energy industries worldwide.
The situation poses significant challenges for Japan's manufacturing sector, which relies heavily on rare earth magnets for its automotive, robotics, and electronics industries. The prolonged supply interruption may accelerate efforts by Japanese companies and their government to diversify sourcing and develop alternative supply chains outside of China. Source: Mining.com.au, reporting by Jackson Chen, with reference to Reuters and Chinese customs data.
Source: mining.com.au