On Friday, China announced new provisional measures to strengthen control over rare earth mining and processing, expanding state oversight of materials critical for electric vehicles, smartphones, and defense applications.
The Ministry of Industry and Information Technology now requires companies involved in rare earth operations to obtain government approval and accurately report their production and processing volumes.
Violators will face legal penalties and potential quota reductions, though specific production and export quotas have not been disclosed. The new regulations apply to both domestically mined rare earths and those imported into China for refining.
China supplies nearly 90% of the world’s refined rare earths, despite accounting for only 70% of global mining output and holding nearly half of the world’s known reserves.
In 2024, 70% of the United States' rare earths came from China, highlighting its dependence on China despite efforts by the Trump administration to diversify supplies.
The new measures cover products including wind turbines, mobile cranes, heavy equipment, railcars, furniture, compressors, and pumps.
The regulations also impose stricter environmental standards for rare earth mining and processing activities.
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