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China cautiously sets 2025 rare earth quotas
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Release time：2025-07-24
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The delay in this year's quota is due to a proposal made in February to include imported ore in the quota system.
According to Reuters, citing unnamed sources, China has delayed and then cautiously released the first batch of rare earth mining and smelting quotas for 2025, indicating tighter control over this key industry. The delay in this year's quotas is partly attributed to a February proposal to include imported ores in the quota system. This proposal was met with resistance from import-dependent companies, who feared it could restrict their raw material supply.
Rare earth elements (REEs) are essential in various high-tech applications and are a focus of global supply chain monitoring. China, the world's largest producer of rare earths, has traditionally allocated these quotas to state-owned enterprises. Last year, only two state-owned groups, China Rare Earth Group and China Northern Rare Earth High-Tech Group, were eligible for quotas, a reduction from six in previous years. The announcement of the first-quarter quotas was reportedly not released, and companies were reportedly instructed not to disclose this data for security reasons. This strategic shift comes as China increasingly strengthens its protection of rare earth resources, which have been a point of contention in trade negotiations between China, the US, and the EU. China has previously used its control over rare earths to disrupt supply chains and impact global manufacturers by adding several elements to its export restriction list in response to US tariff increases.
Last year, China's mining quotas were set at 270,000 tons, with an increase reduced from 21.4% in 2023 to 5.9%. Smelting and separation quotas also increased to 254,000 tons, a 4.2% increase from 2023. The quota system, implemented since 2006, and corporate mergers have been used by Beijing to control the industry's output.
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