China has quietly issued its first 2025 rare earth mining and smelting quotas without the typical public statement, sources with knowledge of the matter said this week, another sign of Beijing tightening its control over the crucial sector.

Rare earths are key materials for many electric vehicle (EV) parts. China has a dominant position in the global rare earth supply chain with its abundant deposits and high vertical integration. In June 2025, China implemented export controls on some medium and heavy rare earths, triggering a crisis for the global automotive supply chain.

China’s exports of rare-earth products jumped in June, pointing to a potential pickup in magnet supplies after government-imposed curbs that proved to be Beijing’s most powerful weapon in its trade war with the Trump administration.