Impact of China’s Rare Earth Controls on the LCD Market

2025-10-31

Recent export controls implemented by China on rare earth-related technologies are expected to have a notable impact on the global LCD market, primarily affecting the supply chain and costs. The following table helps you quickly grasp the core aspects.

Impact dimension	embody
Supply chain shock	Rare earth elements such as europium (Eu), yttrium (Y), and terbium (Tb) used in TFT LCD panels are subject to export controls. Foreign manufactured products containing rare earth components of China origin of ≥0.1% also need to apply for export licenses.
Cost pressure	Rare earth prices have entered an upward channel, such as praseodymium-neodymium oxide prices in 2025 up more than 30% from the beginning of the year. The rising cost of rare earth elements will be passed on to the backlight materials and phosphors in TFT LCD panels, driving up production costs.
competition pattern	Panel makers in regions such as South Korea could face pressure from a shortage of rare earths and rising costs. China’s local panel enterprises may gain comparative advantages in supply chain stability and cost control.
technological development	The development of technologies to reduce rare earths and alternative materials, such as new phosphors that do not contain europium, will be accelerated.

1. Understanding the Control Policy

To fully assess the impact, it’s essential to understand several key points of these control measures:

Broad Scope of Controls: These controls target not only the raw rare earth materials themselves but also extend to “related technologies.” This means that even products manufactured overseas, if they utilize Chinese rare earth separation technology or incorporate Chinese rare earth elements, will face restrictions on their export and resale.
Focus on Medium & Heavy Rare Earths: The restricted rare earth elements are predominantly medium and heavy rare earths, which are irreplaceable in many high-tech applications. For instance, Terbium (Tb) and Europium (Eu) are crucial for the color performance of TFT-LCD displays.
Safeguarding Strategic Interests: These measures aim to protect national security and interests and fulfill international non-proliferation obligations. This clearly signals that China views rare earths as a critical strategic resource, and future regulations will become increasingly stringent.

2. Future Market Outlook

Overall, these rare earth controls could act as a catalyst for reshaping the TFT-LCD industry landscape. In the long term, we anticipate the following developments:

1. Supply Chain Diversification: Global panel manufacturers will be compelled to accelerate the search for rare earth supply sources outside China or invest in rare earth recycling technologies to mitigate supply chain risks.
2. Accelerated Technology Iteration: Similar to how Japan, facing rare earth supply issues in 2013, successfully developed new phosphors using less than one-tenth the previous rare earth content, these controls will significantly stimulate R&D investment in non-rare earth display technologies (e.g., Micro LED, Quantum Dot photoconversion) and technologies that reduce rare earth usage.
3. Price Transmission Mechanism: Increased rare earth costs will ultimately be reflected in the prices of end-consumer electronics. In the future, the pricing of products like TVs and monitors may find stronger support due to these rising raw material costs.

The impact of rare earth export controls on the monochrome LCD market is very limited. As monochrome LCDs fundamentally do not rely on rare earth elements, the current supply chain shock and cost pressures are primarily concentrated in the high-end TFT color display segment.

This situation also highlights that the chosen technology path is a key factor determining supply chain risk. Monochrome LCDs, due to their technological maturity and material simplicity, demonstrate a unique “risk-averse” characteristic amidst these disruptions.

Eastern Display, a traditional well-known LCD manufacturer in mainland China, has been committed since the 1990s to the development, design, and production of LCDs for industrial control, home appliances, medical devices, and automotive applications. We provide customers with high-quality and reliable LCD products, particularly VA LCDs, which meet the requirements for wide temperature operation, high contrast, and wide viewing angles. Having supplied domestic and international clients for over 30 years, Eastern Display is highly regarded and enjoys a strong reputation in fields such as industrial control, home appliances, medical devices, and automotive applications both in China and abroad.