...And yet another story breaking about China proceeding to...

...And yet another story breaking about China proceeding to tighten control in the rare earths sector. The spring continues to being wound tighter & tighter, when it snaps, rare earth prices will double in a matter of weeks and Lynas will jump back above $10 a share. It's only a matter of 'when' not 'if'.

China moves to tighten control in rare earths sector as US seeks alternative sources.
by Colin Hay - 21 February 2025.

Since returning to power this year, US President Donald Trump has made the acquisition of rare earths a key part of a policy aimed at securing critical minerals to help defend his nation.

The US is also racing to strengthen its domestic rare earth sector while reducing its reliance on imports.

The estimated value of rare-earth compounds and metals imported by the US in 2024 was down 11% on 2023 figures.

Standing up to China

President Trump has raised eyebrows with a declaration that he would link support for Ukraine in its war with Russia to access to the country’s large rare earth assets and his suggestion that the US buy Greenland for its world-class rare earth resources.

These overtures have been assessed as a US move to challenge China’s dominance in the rare earth industry.

China is estimated to produce 60% and process nearly 90% of the world’s rare earths, fuelling President Trump’s concerns that it could hinder US defence technology development plans by restricting the country’s access to these strategic metals.

The US president has already escalated tensions by launching a tariff war on China, particularly targeting its electric vehicle industry.Now, China is allegedly taking additional steps to reduce its supply of rare earths and related technology to global markets.

New regulations

Numerous news agencies are now reporting that China is considering new regulations aimed at protecting its domestic rare earth industry.

Consultations are underway on draft regulations released by the Ministry of Industry and Information Technology covering a number of production-related issues, as well as monitoring and enforcement.

There are also rumours that China is looking to ban non-state companies from mining rare earths, further tightening its control over the strategic sector.

This would mean that private firms are prohibited from mining, smelting or separating the minerals in question.

Previous export ban

Beijing banned the export of technology used to make rare earth magnets in 2023.

This was in addition to an existing ban on technology for extracting and separating these critical materials.

Previous decisions to curb the supply of critical minerals such as niobium have already had a major impact on that metal’s price.