Foreign media: demand exceeds supply, and China's rare earth production quota will increase by 20% in 2021

In September 30th, the Chinese mainland increased the annual quota of rare earth production by 20%, reaching the highest level in history to ease the tight supply problems faced by manufacturers.

Reuters quoted a statement from the Ministry of information technology of the mainland I as saying that the total control target of rare earth exploration in the mainland in 2021 was 168000 metric tons, higher than 140000 metric tons last year; The total control target of smelting separation is 162000 metric tons, an increase of 20% over last year.

The mainland is the world's leading producer of rare earths. Rare earths contain 17 precious minerals, which are used in consumer electronics and military equipment. The mainland publishes quotas twice a year, which are divided into the more common light rare earths and heavy rare earths.

Wood Mackenzie analyst Merriman said that in view of the current supply situation in the mainland and the demand growth of NdFeB manufacturers, it is inevitable to increase the quota. NdFeB refers to a rare earth magnet used in consumer products.

About half of the heavy rare earth materials on the mainland depend on the supply of neighboring Burma. But a key border port between the two countries has been shut down to prevent COVID-19, which has caused the supply to dry up.

Merriman said that it is expected that the tight supply of (heavy rare earth) raw materials will continue before the reopening of the China Myanmar border.