China Tightens Grip: Rare Earth Mining Quotas Issued Secretly

In a strategic move, China has quietly released its first 2025 quotas for rare earth mining and smelting without the customary public announcement, insiders revealed this week. This decision underscores Beijing's tightening grip on a critical industry.

The quotas, essential indicators for the global supply of rare earths—vital for technology like electric vehicles and wind turbines—are traditionally issued twice yearly. However, sources indicate that this year's allotments were delayed and disseminated privately for security reasons. The initial set was released last month without fanfare, departing from usual practices.

China's strategic control over rare earth supply has grown crucial, particularly in ongoing trade disputes with the U.S. and EU. Noteworthy is Beijing's action to add certain elements to an export restriction list, impacting foreign manufacturers reliant on these resources. This year, quota issuance was further complicated by a contentious proposal to incorporate imported ore into the system, a move resisted by import-dependent firms.

(With inputs from agencies.)