China boosts rare earths production to bolster booming EV industry www.asia.nikkei.com
China has raised its rare-earth metal production quota for 2023 by 14% over last year to 240,000 tonnes, as the country moves to support its booming electric vehicle (EV) industry.
But in an apparent effort to restrict supply amid heightened tensions with the U.S., the country did not increase quotas for some elements that the world largely relies on China for. Those included dysprosium, which is used in magnets for EV motors.
China's Ministry of Industry and Information Technology and the Ministry of Natural Resources jointly announced the adjustment in production for the second half of the year. The latest quota expansion means another year of continuous growth in rare earths production the country has seen since 2018.
China produced 7 million new energy vehicles in 2022, the most in the world. It aims to further increase domestic sales and exports, heightening the need for a stable supply of rare earths.
The quota for medium and heavy rare earths, considered essential for high-tech products and weapons, was kept unchanged at just under 20,000 tonnes. China accounts for most of the commercial production of these elements; countries like the U.S. and Japan are heavily dependent on its supply.
As tensions with the U.S. mount, dominance over the production of such elements could provide Beijing significant bargaining power.
China accounted for 70% of the world's rare earth production in 2022, according to U.S. Geological Survey estimates.
Published Date:2023-09-26