China has further reinforced its control over the rare earth industry with the approval of its first comprehensive regulation covering the entire value chain, from mining to distribution. Announced by the State Council on its website, the new rules declare rare earths as national assets, effectively prohibiting any private ownership. These regulations, set to take effect on October 1st, establish the state as the sole manager of rare earth resource extraction, ensuring sustainable and regulated development.
Government agencies will oversee the total volume of rare earth mining and smelting, implementing a rigorous traceability system to track the movement of these materials from extraction to their final use. The regulation also includes strict penalties for any illegal activities related to the production of rare earths, as reported by Bloomberg.
Rare earths, a group of 17 essential metals, play a crucial role in the production of magnets used in various technologies, including electric vehicles, wind turbines, and electronics. China, the world’s leading processor of rare earths, has been consolidating its dominance in this industry, culminating in the formation of the China Rare Earth Group Co. in 2021 through the merger of several major producers.
This latest move further cements China’s position as a global leader in the supply of refined rare earth elements, alongside other critical minerals like lithium and graphite. These materials are fundamental for both high-tech manufacturing and the transition to a greener energy future. The new regulations aim to ensure the sustainable and regulated development of the rare earth industry, safeguarding China’s strategic economic interests and its role in global supply chains for advanced technologies.
