China has announced its second batch of rare earths mining output quota for 2024, setting it at 135,000 metric tons, as stated by the Ministry of Industry and Information Technology. This new quota marks a 12.5% increase from the previous year, bringing the total output quota for the year to 270,000 tons, which is a 5.9% rise compared to 2023.
The forecast for the total mining output quota was previously estimated at 270,000 tons by officials from the state-backed Association of China Rare Earth Industry. China plays a dominant role in the rare earths market, accounting for approximately 70% of global mining and 90% of refined production, as reported by the U.S. Geological Survey. The country regulates its rare earth supply through a quota system, typically issuing quotas twice a year.
Rare earths consist of 17 elements essential for various applications, including lasers, military equipment, and magnets used in electric vehicles, wind turbines, and consumer electronics.
Additionally, the ministry set the smelting and separation quota for rare earths at 127,000 tons, reflecting a 10% increase from the previous year. The year-to-date quota for smelting and separation now totals 254,000 tons, which is a 4.2% increase compared to 2023.