China Tightens Grip on Rare Earth Supply with New Regulations
China, the leading supplier of rare earth elements, announced new measures regulating mining, smelting, and separation of these critical minerals. The latest rules extend to imported raw materials, raising concerns among companies about restricted access. Rare earths are essential for various industries, and China's control poses global supply challenges.
On Friday, China, the predominant supplier of rare earths globally, unveiled new regulatory measures aimed at controlling the mining, smelting, and separation of these vital minerals, which are instrumental in energy transition efforts.
The latest ruling, which now includes imported raw materials within the existing quota system, marks a further tightening of China's grip. The Ministry of Industry and Information Technology disclosed this move after soliciting public feedback since February, sparking apprehension among companies wary of losing access to essential materials.
Rare earth elements, numbering 17 in total, are pivotal in products ranging from lasers to electric vehicle magnets. In the wake of recent export restrictions, China's unrelenting control over these resources intensifies global supply challenges, as signaled by their April addition of several rare earth items to an export restriction list.
(With inputs from agencies.)
Google News