China issues rare earth regulations to further protect domestic supplies

BEIJING –

China has unveiled a list of rare earths regulations aimed at protecting supplies in the name of national security, setting rules for mining, smelting and trading of critical materials used to make products ranging from magnets in electric vehicles to consumer electronics.

The regulations issued Saturday by the State Council, China’s cabinet, state that rare earth resources belong to the state and that the government will oversee the development of an industry around rare earth elements – a group of 17 minerals of which China has recently become the world’s dominant producer, accounting for almost 90% of global refined production.

Their global industrial importance is such that under a law that came into force in May, the EU set ambitious 2030 targets for the domestic production of minerals key to the green transition – in particular rare earth elements due to their use in permanent magnets that drive electric vehicle engines and wind energy.