China, the world’s largest producer of rare earths, is set to raise its rare earth mining output quota to a record high of 270,000 metric tons in 2024, according to an industry official.
Chen Zhanheng, the vice secretary general at the Association of China Rare Earth Industry, revealed the planned increase at an industry conference. This would surpass the previous record of 255,000 tons set in 2023.
Additionally, the rare earth smelting and separation quota is likely to be increased to 254,000 tons, exceeding the previous high of 243,850 tons set last year.
China controls the global supply of rare earths by issuing mining, smelting and separation quotas annually. Rare earths are a group of 17 essential elements used in a wide range of high-tech products, from lasers and military equipment to magnets for electric vehicles and wind turbines.
The Ministry of Industry and Information Technology has already set the first rare earths mining quota of the year at 135,000 tons, a 12.5% increase from the initial quota in 2023.
The planned quota increases reflect China’s efforts to boost its rare earth production capacity to meet growing global demand, particularly in the renewable energy and electric vehicle sectors. Rare earths are crucial components in many green technologies that are driving the transition to a low-carbon economy.
By raising the production quotas, China aims to strengthen its dominance in the rare earth industry and ensure a stable supply of these critical materials to both domestic and international markets.