25% Rise of 2022 Index for 2nd Batch Rare Earth

On August 17, the Ministry of Industry and Information Technology and the Ministry of Natural Resources issued the notice on issuing the total amount control index for the second batch of rare earth mining, smelting and separation in 2022. According to the notice, the total control indicators of the second batch of rare earth mining, smelting and separation in 2022 are 109200 tons and 104800 tons respectively (excluding the first batch of indicators issued). Rare earth is a product under the total production control and management of the state. No unit or individual may produce without or beyond the target.

2022 Index for 2nd Batch Rare Earth

Specifically, in the total amount control index of rare earth mineral products (converted into rare earth oxides, tons), the rock type rare earth is 101540 tons, and the ionic type rare earth is 7660 tons. Among them, the quota of China Northern Rare Earth Group in the north is 81440 tons, accounting for 80%. In terms of ionic rare earth mining indicators, the quota of China Rare Earth Group is 5204 tons, accounting for 68%.

The total amount control index of rare earth smelting separation products is 104800 tons. Among them, the quotas of China Northern Rare Earth and China Rare Earth Group are 75154 tons and 23819 tons respectively, accounting for 72% and 23% respectively. On the whole, China Rare Earth Group is still the main source of rare earth quota supply.

The notice points out that the total control indicators of rare earth mining, smelting and separation in the first two batches in 2022 are 210000 tons and 202000 tons respectively, and the annual indicators will be finally determined by comprehensively considering the changes in market demand and the implementation of rare earth group indicators.

The reporter found that the total control indicators of rare earth mining, smelting and separation in 2021 were 168000 tons and 162000 tons respectively, indicating that the total control indicators of rare earth mining, smelting and separation in the first two batches in 2022 increased by 25% year on year. In 2021, the total control index of rare earth mining, smelting and separation increased by 20% year-on-year compared with that in 2020, while that in 2020 increased by 6% year-on-year compared with that in 2019. It can be seen that the growth rate of the total control indicators of rare earth mining, smelting and separation this year is higher than before. In terms of the mining indicators of the two types of rare earth mineral products, the mining indicators of rock and mineral rare earths in 2022 increased by 28% compared with that in 2021, and the mining indicators of ionic rare earths remained at 19150 tons, which has remained stable in the past three years.

Rare earth is a product under the total production control and management of the state, and the supply elasticity is limited. In the long run, the tight supply of rare earth market will continue. From the demand side, it is expected that in the future, the new energy automobile industry chain will develop rapidly, and the penetration rate of rare earth permanent magnet motors in the fields of industrial motors and variable frequency air conditioners will increase, which will drive the demand for rare earth to increase significantly. The growth of domestic mining indicators is also to meet this part of demand increment and reduce the gap between supply and demand.


Post time: Aug-18-2022