China continues to tighten control over global rare earth supplies

China has released its first set of rare earth mining quotas for 2025 quietly, marking a move to tighten state control over an industry vital to everything from electric cars to military hardware.

Reuters reported that Beijing issued the initial quotas just last month, without any formal announcement or public notice. Companies granted permission to mine and process these critical minerals were asked to keep the figures confidential, reportedly for security. Neither the volume nor the specific breakdown of mining versus smelting allowances has been disclosed.

For years, China’s Ministry of Industry and Information Technology has published its first quarterly quota on its website, usually in the opening months of the year. In contrast, this year’s decision came in silence, underlining Beijing’s growing caution about releasing data that reflects its grip on global supplies.

Analysts watch these quotas closely, as they signal how many rare earths, 17 metals essential to electric vehicles, wind turbines, robots, and missiles, will enter the market. China alone accounts for the lion’s share of global production. Delays to the usual spring announcement had fuelled speculation that authorities were reassessing how tightly to hold the reins.

When asked why the figures were not shared publicly this time, the Industry Ministry didn’t respond to requests for comments. Observers say the decision fits a broader trend of Beijing using rare earths as leverage in trade talks, notably with the United States and the European Union.

China issued two rounds of mining quotas last year, totalling 270,000 metric tons. That output allowance represented a slowdown in annual growth to 5.9 percent, down from a 21.4 percent increase in 2023. Smelting and separation permits for 2024 were also set in two batches, amounting to 254,000 tons, up 4.2 percent on the previous year.

China’s rare earth shipments to the US rebounded in June

In a related development, China’s shipments of rare earths and magnets to America rebounded sharply in June. The General Administration of Customs data shows exports climbed to 353 metric tons, a 660 percent jump compared with May’s 46 tons.

That surge followed late‑June agreements aimed at clearing a backlog of export licences for magnets and rare earths bound for U.S. customers. As part of the same talks, chipmaker Nvidia said it plans to restart sales of its H20 artificial intelligence processors in China.

Earlier this year, Beijing had added several rare earth items and related magnets to its export restriction list in early April, a response to American tariffs. The move stalled shipments in April and May, disrupting supply chains. Some overseas automakers reportedly scaled back production amid the squeeze.

Globally, China exported 3,188 tons of permanent rare earth magnets in June, up 157.5 percent from May’s 1,238 tons. Despite the rebound, June’s total remained 38.1 percent below the 5,158 tons shipped in June 2024.

Market watchers expect exports to climb further in July as more firms secure the necessary licences. Still, for the first half of 2025, China’s magnet exports were down 18.9 percent year‑on‑year, at 22,319 tons.

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