China has tightened export controls on rare earths and other materials critical for advanced tech manufacturing, in a move that appears to be a key bargaining chip ahead of an expected meeting between China’s Xi Jinping and US President Donald Trump this month, the BBC reported on Thursday.
China’s government added five rare-earth elements, including holmium, erbium, thulium, europium, ytterbium, and related magnets and materials, to its existing control list, requiring export licenses.
The announcement brings the total number of restricted elements to 12, out of the 17 types of rare earths.
Restrictions, which will begin on November 8, will apply to any exported products containing over 0.1% of China’s domestically sourced rare earths, or manufactured using China’s extraction, refining, magnet-making or recycling technology.
China processes about 90% of the world's rare earths, which are used to power everything from solar panels to semiconductors.
Thursday’s announcement by Beijing boosted the stock prices of many rare-earth related companies trading in North America.
Shares of USA Rare Earth Inc (NASDAQ: USAR) jumped 15%, while MP Materials Corp (NYSE: MP) shares rose 8%, Energy Fuels Inc. (TSX:EFR, NYSE-A:UUUU) gained 10%, and Lithium Americas Corp (TSX:LAC, NYSE:LAC) and Trilogy Metals Inc (NYSE American: TMQ) both added 4% in Thursday’s trading session.