BEIJING- Exports of rare earths in top producer China are likely to increase ahead of new regulations due to take effect on October 1, the state-backed research house Antaike said on Tuesday.
The regulations, issued on Saturday by China’s State Council, or cabinet, set out rules on the mining, smelting and trading of the materials used to make products ranging from magnets in electric vehicles to consumer electronics.
The cabinet also said China will establish a information system to track circulation of rare earth products, a move that Antaike said was aimed at preventing smuggling and illegal trade.
Antaike, in a post on its WeChat account, said the regulations, combined with recent efforts by China to regulate the trade of rare earths and other critical minerals, could concern the market.
“Exports will likely increase in the short term due to a possible wave of stockpiling ahead of the regulations taking effect,” it added.
In December, China announced it would ban the export of technology to make rare earth magnets, on top of a ban already in place on exporting technology to extract and separate the critical materials.
China has also said it would require exporters of rare earths to submit information on shipments and quantity under a new rule effective Oct. 31.
Beijing has also introduced restrictions on exports of germanium and gallium products as well as some graphite products, citing national security and interests.
Exports of germanium and gallium products used widely in the chip-making sector surged in July, a month before controls over the sector took effect.
The regulations, issued by the State Council or cabinet on Saturday, say rare earth resources belong to the state, and that the government will oversee the development of the industry around rare earths – a group of 17 minerals of which China has in recent years become the world’s dominant producer, accounting for nearly 90% of global refined output.
Their global industrial significance is such that under a law that entered into force in May the EU set ambitious 2030 targets for domestic production of minerals crucial in the green transition – particularly rare earths due to their use in permanent magnets that power motors in EVs and wind energy.
EU demand is forecast to soar sixfold in the decade to 2030 and sevenfold by 2050.
The new Chinese regulations, which will take effect on Oct. 1, say the State Council will establish a rare earth product traceability information system.
