China has discreetly issued rare earth mining and smelting quotas for 2025, signaling tighter control over the sector. The delay is linked to a proposal to include imported ore in the quota system, facing resistance from import-dependent companies. China, a major rare earth producer, traditionally issues quotas to state-owned companies like China Rare Earth Group. The Ministry of Industry and Information Technology has not responded to inquiries about the change in disclosure practices.

Rare earth elements are crucial in high-tech applications and are monitored globally. China’s control over rare earths has been a point of contention in trade negotiations with the US and EU. The country has previously leveraged its control by adding elements to its export restriction list in response to tariff hikes, impacting global supply chains. China’s mining quotas for 2025 were set at 270,000 tonnes, with a growth rate of 5.9% compared to 21.4% in 2023. Smelting and separation quotas also saw an increase to 254,000t, a 4.2% rise from 2023. The quota system, in place since 2006, allows Beijing to exert control over the industry’s output and has seen corporate consolidation.

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