China boosts rare earth output to record highs to ensure dominance in trade war with US

The world’s top producer of rare earths – China – has raised its annual mining quota to a record high of 132 thousand tons, the Global Times reported citing statistics from the Ministry of Industry and Information Technology.

Rare earth metals are used in many devices that people use every day, such as computers, DVDs, rechargeable batteries, cell phones, catalytic converters, magnets, and fluorescent lighting.

Chinese data shows a 10 percent increase in rare earth production compared to last year's level.

China controls at least 85 percent of the world's rare-earth processing capacity. For a long time, the US relied on China for about 80 percent of its rare earths. The escalating trade conflict between the nations has raised concerns about the measures each side could use in their fight, including Beijing’s option to restrict exports of rare earths. The measure is considered one of Beijing’s nuclear options in its battle with Washington.

Media outlets have been reporting that the Trump administration which seeks to end dependence on China for rare earth supplies has been looking to other countries to diversify the supply chain.Washington held talks with some rare-earth mines in Africa. Last week, the US and Australia agreed to support projects on developing critical minerals and rare earths outside China.

Trump has also invoked the Defense Production Act in July, which encourages the domestic production of rare earth minerals. The United States was a global leader in rare earth production from the 1960s until the mid-1990s.

Rare earths or rare metals are a group of 17 chemical elements with special characteristics. They are actually not rare, despite their name, but they are difficult to find in desirable concentrations and are hard to process, as the ores often contain naturally occurring radioactive materials such as uranium and thorium.

For more stories on economy & finance visit RT's business section