– China has introduced a tracking system for its rare earth magnet sector, three sources said, as its export restrictions on them begin to cut off customers around the world.
The national tracking system, which went into effect last week, requires producers to submit extra information online including trading volumes and client names, said two sources familiar with the matter and another briefed by those involved.
The world’s largest rare earth magnet supplier and exporter, China in early April imposed export restrictions on seven medium to heavy rare earth elements and several magnets, requiring exporters to obtain licences.
Delays getting approvals have upended supply chains for automakers, semiconductor companies and others, with global automakers already beginning to stop some production lines as reserves run out.
Beijing unveiled high-level plans to establish an information tracing system for rare earth products last June, but there had been no mention of it again until last week, according to the source briefed on the matter.