China’s Ministry of Commerce expanded export restrictions on rare‑earths on October 9, 2025, adding holmium, erbium, thulium, europium and ytterbium to its controlled list and requiring licenses for a broader range of rare‑earth processing equipment. The new measures build on earlier curbs introduced in April and tighten oversight of exports destined for defense and semiconductor applications, which will undergo case‑by‑case review. Officials said Chinese companies must obtain approval before collaborating with foreign entities on rare‑earth projects, and some foreign users of Chinese‑made components may also need licenses to re‑export controlled items. The moves reinforce Beijing’s leverage over a supply chain it dominates, with China producing more than 90% of the world’s processed rare‑earths and magnets. News of the expanded controls lifted shares of non‑Chinese producers and sector ETFs, reflecting expectations that downstream users will accelerate diversification of supply. The policy shift comes ahead of high‑level diplomatic engagements and amid ongoing efforts by the U.S. and allies to onshore or friend‑shore critical mineral capacity. Market participants are watching licensing timelines and exemptions to gauge potential impacts on shipments in Q4 2025 and into 2026.