According to data released by customs on Tuesday, supported by strong demand from the new energy vehicle and wind power industries, China’s rare earth exports in July increased by 49% year-on-year to 5426 tons.
According to data from the General Administration of Customs, the export volume in July was the highest level since March 2020, also higher than the 5009 tons in June, and this number has been increasing for four consecutive months.
Yang Jiawen, an analyst in the Shanghai metal market, said: “Some consumer sectors, including new energy vehicles and wind power installed capacity, have shown growth, and the demand for rare earths is relatively stable
Rare earths are used in products ranging from lasers and military equipment to magnets in consumer electronics such as electric vehicles, wind turbines, and iPhones.
Analysts say concerns that China may soon restrict rare earth exports have also driven the growth in exports last month. China announced in early July that it would restrict the export of gallium and germanium, which are widely used in the semiconductor industry, starting from August.
According to customs data, as the world’s largest rare earth producer, China exported 31662 tons of 17 rare earth minerals in the first seven months of 2023, a year-on-year increase of 6%.
Previously, China increased the first batch of mining production and smelting quotas for 2023 by 19% and 18% respectively, and the market is waiting for the release of the second batch of quotas.
According to data from the United States Geological Survey (USGS), by 2022, China accounts for 70% of the world’s rare earth ore production, followed by the United States, Australia, Myanmar, and Thailand.