China tightens management of rare earth elements with new regulations

Government agencies will have control over the total volume of rare earth metals extraction and smelting and will establish a product traceability system, he added. The regulation also provides for penalties for illegal activities related to the extraction of the mineral.

China has long had a near monopoly on the supply of refined materials such as rare earths, lithium and graphite, which are essential for high-tech manufacturing and the transition to green energy. The country accounts for about 70% of global rare earth production. It has been consolidating its mining assets and in 2021 formed China Rare Earth Group Co. through a merger of several key producers.