East Money Information Securities: Export control intensified, rare earths may usher in another round of investment opportunities.

East Money Information Securities released a research report stating that after China's comprehensive control of the rare earth industry, global rare earth supply growth expectations may be lowered, and related policies favor the high-quality development of the domestic rare earth industry. After the implementation of export controls, the Ministry of Commerce also stated that it will continuously accelerate the review of rare earth-related export permit applications in accordance with the law and regulations. By August of this year, China's rare earth permanent magnet exports have recovered by +15.4% year-on-year. The normalization of supply and the continued growth in demand have boosted the performance of the rare earth sector this year. In addition, the rare earth permanent magnet materials are closely related to industries such as humanoid Siasun Robot&Automation, and the sector may benefit from the expected growth in demand from emerging industries. The main points of East Money Information Securities are as follows: Event: The Ministry of Commerce and the General Administration of Customs issued multiple announcements, implementing export controls on certain items related to medium and heavy rare earths, some rare earth equipment and raw materials related items, and rare earth-related technologies starting from November 8, 2025. China's comprehensive upgrade of rare earth industry control In April of this year, the Ministry of Commerce and the General Administration of Customs issued an announcement to implement export controls on seven types of medium and heavy rare earth-related items, and this round of export controls has been comprehensively upgraded. 1) Expand the scope of controlled items. Announcement No. 56 added export controls on five additional types of medium and heavy rare earth-related items, further expanding the range of rare earth control elements. 2) Extension of control to overseas area. Announcement No. 61 requires that when operators abroad export items to other countries and the exported items contain, integrate, or mix with rare earth control items originating in China, they must obtain a dual-use export permit issued by the Chinese Ministry of Commerce. 3) Implementation of export controls on rare earth equipment and technology. Announcement No. 56 and No. 62 respectively implemented export controls on rare earth-related technologies, some rare earth equipment, and raw materials related items, achieving more comprehensive control of the upstream and downstream of the rare earth industry chain. Increasing difficulty in reconstructing the overseas rare earth supply chain, further elevating the strategic importance of rare earths This year, the United States has made various attempts to reconstruct the rare earth supply chain, including the US Department of Defense investing $400 million in the country's only rare earth mine and refining company MP Materials, becoming the largest shareholder, and ensuring the purchase of neodymium-praseodymium products at a price of $110 per kilogram; supporting the development of the first new rare earth mine project in Wyoming in 70 years by the LaMacchia Resources company. China's strengthened comprehensive control of the rare earth industry has increased the difficulty of reconstructing the overseas rare earth supply chain, and has further elevated the strategic position of China Rare Earth Resources And Technology products. Normalization of supply combined with continued demand growth, promoting the performance of the rare earth sector This year's policies such as the "Interim Measures for the Total Control Management of Rare Earth Mining and Rare Earth Smelting and Separation" have included imported ore in the total control management, strengthened the traceability management of rare earth products throughout the whole process, and the crackdown on the smuggling and export of strategic minerals requires strengthening source control of rare earths and others. The demand for rare earths benefits from the continued growth in output of new energy vehicles and wind power installation capacity. After the implementation of export controls, the Ministry of Commerce also stated that it will continuously accelerate the review of rare earth-related export permit applications in accordance with the law and regulations, and by August of this year, China's rare earth permanent magnet exports have recovered by +15.4% year-on-year. The normalization of supply and the continued growth in demand have promoted the performance of the rare earth sector this year. Regarding targets It is recommended to pay attention to rare earth production companies such as China Northern Rare Earth (600111.SH), China Rare Earth Resources And Technology (000831.SZ, 00769), and Rising Nonferrous Metals Share (600259.SH), as well as magnetic material companies such as Jl Mag Rare-Earth (300748.SZ, 06680). Risk warning US tariff policies exceed expectations.