China Tightens Grip on Rare Earths with Secretive Quotas

China has taken a strategic step towards reinforcing its control over the rare earth industry by issuing its first 2025 mining and smelting quotas without the usual public announcement, sources revealed this week. Typically seen as a critical indicator for global rare earth supplies, the quotas are monitored closely by industry insiders.

In an unprecedented move, the Chinese government issued the quotas last month, instructing companies to keep the details confidential for security reasons, according to sources. The quota volumes have not been disclosed, marking a significant shift in transparency, with no official explanation from the Ministry of Industry and Information Technology.

The decision is part of China's broader strategy amidst trade tensions with the U.S. and EU, where it has used rare earths as leverage. The restrictions have impacted industries reliant on these crucial minerals, including the automotive sector, as Beijing solidifies its hold on this essential aspect of global trade.

(With inputs from agencies.)