China To Merge 3 Companies Producing Rare Earth Metals

China will restructure three rare-earths producers to create a state-owned company with a nearly 70% share of the domestic production quota for the metals that are essential to manufacturing high-tech products, Shunsuke Tabeta reported for Nikkei Asia.

Photo Insert: China will create a state-owned company with a nearly 70% share of the domestic production quota for rare earths.

Beijing’s move is significant since China controls more than 80% of the annual global supply of rare earth metals, a group of 17 metals required for the production of cellular phones, electric car batteries, and even weapons systems.

Earlier this month, China said it will raise this year's quota on the production of rare-earth metals by 20% in order to secure a supply chain that is immune from US sanctions.

Last month, Cheng Ting-fang and Lauly Li reported for Nikkei Asia that electronic hardware manufacturers are sweating as prices for rare-earth metals surge amid soaring demand and simmering tensions between the US and China, the world's most important source of these vital materials.

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