China is once again strengthening control over a critical industry — this time, it's rare earth elements, essential for everything from electric vehicles and advanced weaponry to semiconductors and wind turbines. Beijing has quietly issued its first mining quotas for 2025 without any public announcement or disclosure of volumes, signaling tighter state supervision over a market heavily reliant on Chinese exports.

Quotas Issued in Silence, Without Explanation

Unlike in previous years, when the Ministry of Industry and Information Technology typically published quota data on its website in early months, this time the decision was made behind closed doors. According to Reuters, authorized mining and processing companies were instructed to remain silent — reportedly for security reasons.

No detailed breakdown of mining or smelting allocations was made public. Analysts say this reflects Beijing’s growing concern over releasing sensitive data that highlights its dominance over global supply chains and may serve as a tool in trade negotiations, especially with the US and EU.

China Dominates Rare Earths — and It Knows It

Rare earths comprise 17 metals essential for modern technologies, batteries, electric motors, and advanced military systems. China is by far the largest global producer and processor of these strategic resources.

Last year, China issued rare earth mining quotas totaling 270,000 metric tons — a 5.9% year-over-year increase, down from a 21.4% rise in 2023. Smelting and separation quotas for 2024 were set at 254,000 tons, representing a 4.2% increase from the previous year.

U.S. Imports Surged in June After Licensing Bottlenecks Resolved

After months of disruptions, rare earth exports and magnets from China to the United States surged in June. China’s customs data showed that shipments jumped to 353 metric tons — up 660% from just 46 tons in May.

This spike came after late-June negotiations aimed at clearing a backlog of export licenses for rare earth metals and magnets bound for U.S. customers. In parallel, chipmaker Nvidia announced it would resume sales of its AI-powered H20 processors in China.

Exports Rebound But Still Trail Last Year’s Levels

Despite the monthly rise, June’s overall export volume remained below 2024 levels. China exported 3,188 tons of rare earth permanent magnets in June — up from 1,238 tons in May, but still 38% lower than the 5,158 tons exported in June 2024.

In the first half of 2025, total Chinese exports of rare earth magnets dropped by 18.9% year-over-year to 22,319 tons. Market observers expect volumes to climb in July as more companies receive the necessary licenses.

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