China has secretly issued its rare earth mining and smelting quotas for 2025, breaking from its usual public approach. These quotas are crucial because rare earth elements are used in electric vehicles, wind turbines, smartphones, and military systems.
Typically, China announces these limits in the first quarter of the year through the Ministry of Industry and Information Technology’s website. However, this year, the decision came later, in June, and companies were asked not to disclose the figures. This unusual step suggests tighter government control over the sector.
The delay in quota release appears linked to a February proposal to include imported raw materials in the quota system. Some companies opposed the change, saying it could restrict their access to necessary supplies from abroad.
Beijing has also cut down the number of companies allowed to produce rare earths. Only two state-owned firms—China Rare Earth Group and China Northern Rare Earth Group—have been given production rights this year. Previously, six groups shared the quotas.
In 2024, China’s total rare earth quotas for mining and smelting were 270,000 and 254,000 metric tons, respectively. The rare earth sector is considered a strategic industry, and China’s latest moves show its intention to maintain firm control over the global supply.
Earlier today in the morning, China’s spy agency accused foreign intelligence services of attempting to steal rare earth materials, calling it a serious national security threat. Despite this, China said it will continue to crack down on smuggling and will closely review export license requests, especially following recent trade talks with the U.S.
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