No longer rare: China's overproduction sends rare-earth prices tanking

Beijing's new restrictions on industry fail to reverse trend

20240718N rare earth mine

An open-pit mine for rare-earth elements in California. The U.S. has expanded production of the metals to reduce dependence on China. © Reuters

SHUGO YAMADA, Nikkei staff writer

TOKYO -- International prices of rare-earth elements have plunged 20% over the past year as overproduction in China has caused a supply glut.

Seeking to tighten its grip on the industry, China in June put out a list of regulations to protect supplies of these economically important metals. The regulations, issued by the State Council and taking effect on Oct. 1, say rare-earth resources belong to the state.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.