# China retains 97% grip on heavy rare earths ahead of Pentagon ban

*Western magnet milestones leave midstream separation unaddressed before the United States bars Chinese dysprosium and terbium on Jan. 1, 2027.*

**Published:** November 14, 2026  
**By:** Mina Okoro  
**Section:** Analysis & Comparison — Cross-border  
**Format:** Why It Matters  
**Confidence:** high  
**Source:** https://eastasiabrief.com/analysis/china-retains-97-grip-heavy-rare-earths-ahead-pentagon-1441  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- China controls 97% of separated dysprosium and terbium oxide in 2026
- DFARS clause 252.225-7052 bans Chinese separated rare earths on Jan. 1, 2027
- Allied separation lines cannot meet US military demand before the deadline

![A worker in a lab coat stands beside columns of colored chemical solutions inside a rare earth refining and separation plant. (AI-generated image)](https://eastasiabrief.com/media/2026-11-14-d5aa9e28a6fb.webp)
*A worker in a lab coat stands beside columns of colored chemical solutions inside a rare earth refining and separation plant. (AI-generated image)*

Benchmark Mineral Intelligence reported Nov. 13, 2026 that recent Western rare earth production milestones will fail to break China's grip on heavy rare earth separation ahead of tighter US defense rules.

Three developers across Europe and the United States achieved pilot output in sintered magnets and chemical oxides in recent weeks. Those announcements add finished magnet capacity but leave midstream chemical refining largely unaddressed, Benchmark said.

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Cite as: East Asia Brief, "China retains 97% grip on heavy rare earths ahead of Pentagon ban," November 14, 2026. https://eastasiabrief.com/analysis/china-retains-97-grip-heavy-rare-earths-ahead-pentagon-1441