On October 27, British media reported that data provided by Adamas Business Intelligence showed that China will restrict the production of domestic rare earth mines in the second half of this year. Find alternative supplies worldwide.

In the second half of 2018, China cut its rare earth separation and smelting quota by 36 percent, limiting rare earth production to 45,000 tons -- five years, Reuters reported on October 24, Adamas Business, which closely tracks the rare earth industry, said The frequently lower levels are designed to provide enough supply for domestic Chinese buyers to better control the market.

Ryan Castillo of Adamas Business said that while China may meet its own needs before exporting, increasing exports will require China to consume already low levels of neodymium, praseodymium and dysprosium used in electric vehicle engines. in stock. The price of praseodymium neodymium oxide, a key rare earth mineral, is likely to rise by 10% to 50% over the next 12 months, before doubling in the next five years as supply exceeds demand.

China is currently the largest producer and consumer of rare earths, which include 17 elements that can be used to make electric vehicles and consumer electronics, the report said. China's rare earth exports typically account for about 80 percent of global demand, or about 156,000 tonnes a year. Still, exports fluctuate wildly from month to month. In September, for example, rare earth exports surged 15 percent from August, according to the data, despite a drop earlier this year.

China's export restraint and market dominance have spooked manufacturers, including Japan's electronics maker Panasonic, which said it was looking for new sources of supply, the report said.

"We have been working to diversify our sourcing channels, build partnerships with suppliers and work to reduce the use of rare earths," Panasonic said in a statement to Reuters.

Australia's Lynas Mining is a major producer of rare earths outside China through its processing plant in Malaysia, the report said. But last month, a Malaysian politician said the plant should be closed, sending the company's shares lower and further rattling the rare earths market.

There has been little research into rare earth alternatives, and manufacturers have relied on those special minerals, while demand for electric vehicle batteries and other products using the material has surged. For example, an average Toyota Prius car uses 25 kilograms of rare earths, while an average combustion engine car uses 1 kilogram of rare earths.