China has unobtrusively released initial quotas to extract the scarce earths in 2025, creating greater state governance on the most crucial international goods. 

The move will end previous standards, where officials had not made public announcements and had instructed companies to ensure quotas remained secret. The action is undertaken as strategic initiatives to control information and shape the markets associated with major sectors.

Quotas Released Without Public Disclosure

The first rare earth quota of China is usually released during the first quarter of every year. But in the case of 2025, the allocation was unannounced in June. The Ministry of Industry and Information Technology failed to comment on the requests. The analysts justified the silence by saying that there is now a lot of caution and a broader approach to controlling information on the control of rare earth production in China.

These quotas are vital because they determine the quantity of the 17 rare earth elements that will be introduced in the market. Examples of applications of these metals include electric cars, wind-powered devices, the military, and robotics. In the current year, Beijing has failed to be transparent, leading to the fear that it is interested in influencing supply and trade discourses globally.

Production Growth Slows as Controls Tighten

In 2024, China allocated upper values of mining at 270,000 metric tons in two sessions with a mango-like improvement of 5,9 per cent as compared with the previous year. This is a sharp contrast to 21.4 per cent growth registered in 2023. There were 254,000 tons of smelting and separation allowed in 2024, an increase of only 4.2 per cent on last year.

A slower rate of quota growth implies more significant regulatory control. Experts consider that Beijing is trying to utilise its monopoly on rare earths in its talks with the US and the EU. The imposition of export restrictions earlier in 2025 was considered a response to tariffs imposed on imports and increased geopolitical pressure.

Rare Earth Exports to the US Rebound in June

United States shipment Imports of rare earths into the United States increased strongly in June after what appeared as drastic falls in April and May, with shipments to China rising. Customs figures indicate that exports increased up to 353 metric tons compared to only 46 tons in May. The rise was due to clearing of licensing backlogs that had caused disturbance in supply chains.

In June, permanent magnet exports also increased by a whopping 157.5 per cent to 3,188 tons. Nevertheless, this value was still 38.1 per cent lower than June 2024. As the first half of 2025 closed, there was an overall decrease of 18.9 percent in exports of magnets as compared to the previous year, with the figure standing at 22,319 tons. Its analysts anticipate a gradual rise in the shipments until July, when more companies will get export permits.

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