Chinese environmental laws to drive up rare-earth prices

China on Monday issued environmental standards for rare-earth element producers, which 60% of the local industry would struggle to meet, a State-owned paper said.

This will lead to consolidation among miners of the metals, used in hi-tech electronics like smart phones and advanced weaponry, and will drive up export prices, China Daily reported, citing an unnamed executive from Ganzhou Rare Earth Mineral Industry Co.

China produces over 90% of the world’s rare-earth element supplies, and has been reducing exports to other countries.

European, US and Japanese governments have expressed concern about their countries’ excessive dependence on China for rare earths, which are also used in the giant magnets crucial to wind power generation.