China has quietly issued its first rare earth mining and smelting quotas for 2025 without the usual public announcement, according to sources familiar with the matter — a move seen as part of Beijing’s efforts to tighten control over the strategically vital sector.
The rare earth quota system is a key tool used by China, the world’s top producer of the 17 minerals critical to EVs, wind turbines, defence systems and more, to manage global supply. Unlike in previous years, the quotas were delayed and communicated privately to state-owned companies last month, with firms reportedly instructed to keep the figures confidential for security reasons. This marks a further sign of China’s increasingly cautious and controlled approach amid ongoing trade tensions.
Info comes via Reuters .
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As background to this.
China has become increasingly protective of its rare earth sector, especially as it leverages control over the supply chain during trade disputes with the U.S. and EU. In response to U.S. tariff hikes, Beijing recently added rare earth elements and related magnets to its export restriction list, a move that disrupted global supply chains and even forced some foreign automakers to scale back production.
Historically, China’s Ministry of Industry and Information Technology publicly released rare earth quotas early each year, but this year’s issuance has been delayed and kept confidential. In 2023, mining quotas rose just 5.9% — a sharp slowdown from the previous year — and access has been increasingly restricted to just two major state-owned firms, down from six. This year’s delay is partly tied to a controversial proposal to include imported ore under the quota system, which faced pushback from companies reliant on foreign feedstock. Beijing continues to use quotas and industry consolidation to tighten control over production and exports.
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