The Chinese government is limiting domestic production of rare earth minerals in the second half of the year, a move likely to crimp international exports and send prices for the critical materials soaring, according to data from Adamas Intelligence.
China is by far the world's largest producer and consumer of rare earths, a group of 17 elements used to make electric vehicles and consumer electronics. The move is already forcing manufacturers to scour the globe for alternative supplies.
For the second half of 2018, China's quota for rare earth separation and smelting has been cut 36 percent in an attempt to better control the market, according to Adamas, a research firm that closely tracks the rare earths industry.
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