China boosts rare-earth quota 20% to shield supply chain from U.S.

Increase raises output to record 168,000 tons for crucial high-tech materials

20210930N China rare earth

Excavators at the Port of Lianyungang in China's Jiangsu Province load rare earths for export. © AP

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- China will raise this year's quota on the production of rare-earth metals by 20%, the government said Thursday, as it moves to secure a supply chain that is immune from U.S. sanctions.

The country will now produce 168,000 tons of rare earths, according to a notice from the Ministry of Industry and Information Technology and the Ministry of Natural Resources. Officials announced in February an 84,000-ton quota for the first half, and the scale will be repeated for the second half.

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