LONDON, Oct. 24: The Chinese government is restricting domestic production of rare earths in the second half of this year, which could dampen international exports and push up prices, data from Adamas Intelligence, a research firm that closely tracks the rare earths industry, showed.

Rare earths are a group of 17 chemical elements that are used in the production of electric vehicles and other consumer electronics. China is now the largest producer and consumer of rare earths, and its moves have forced global manufacturers to find other sources of supply.

China will cut its rare earth separation and smelting quota by 36% in the second half of this year, a move aimed at better control of the market, Adamas reported.

Adamas said China decided to limit domestic rare earth production to 45,000 tonnes in the second half of the year, the lowest level in five years, and that the output was only to meet the needs of Chinese domestic buyers.