China raises rare earth output quotas to record high

China increased its rare earth mining quotas for the first-half of the year to a record level of 84,000 tonnes, a 27.6% jump from a year earlier, according to a Friday statement released by the Ministry of Industry and Information Technology, reported Caixin.

The total quota for rare earth smelting and separation has been set at 81,000 tonnes, also a 27.6% hike from a year earlier, according to the statement.

The announcement could ease concerns over speculation that China could impose a rare earth export ban. The Ministry of Industry and Information Technology last month proposed a new regulationto control the country’s rare earth production and exports, reported Caixin.

With the capacity of production and export of 17 rare earth minerals, China controls about 80% of rare earths in the global supply chain. Rare earth minerals are essential in producing electric vehicles, consumer electronics and military equipment.