Chinese government issues regulations on rare earth management

The regulations, which will take effect from October 1, focus on ensuring that the country pays due attention to resource protection as well as the exploitation and use of rare earths, adheres to principles of master planning, ensures security, promotes technological innovation and green development.

According to the regulations, China will promote the development of the rare earth mining industry, and encourage research, development and application of new technologies, new materials and new equipment.

The regulations spell out penalties for illegal activities in areas including mining, smelting and extracting rare earths, product distribution, and illegal import and export of the metals.

Rare earths are a group of 17 elements used to make magnets that convert energy into motion for use in a wide range of electrical and electronic devices, from phone chips to electric cars to wind turbines to military equipment. Despite their name, these metallic elements, essential to advanced technologies, are relatively abundant. However, it is their unique electromagnetic properties that have made them so sought after that they have become “strategic metals.”

China currently controls about 90% of the world’s refined rare earth production. In recent years, European countries and the United States have also tried to reduce their dependence on Chinese rare earths. However, these countries have yet to master the refining process of these strategic minerals due to the technical complexity.