China ramps up rare-earth production to meet EV, wind power demand

Beijing raises cap amid rising demand and worry over risk to U.S. imports

20230425N Rare earth soil

Soil containing rare earths is transported for export at a port in China's Jiangsu province, a producer of the metals. © Reuters

SHUNSUKE TABETA, Nikkei staff writer

BEIJING -- State-owned Chinese resources developers are expanding production of rare-earth metals in response to higher government quotas, working to build a supply chain that can handle growing demand for electric vehicles and other high-tech products. 

China Northern Rare Earth (Group) High-Tech, China's biggest player in the field, in March announced plans to expand a refining and processing facility in Inner Mongolia into one of the largest in the world. The 7.8 billion yuan ($1.1 billion) project is expected to take a year and a half.

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