China, the world’s largest rare- earths producer, cut export quotas for the minerals needed to make hybrid cars and televisions by 72 percent for the second half, according to Lynas Corp.
Shipments will be capped at 7,976 metric tons, down from 28,417 tons for the same period a year ago, Sydney-based Lynas said, citing China’s Ministry of Commerce. Lynas is building a rare earth mine at Mount Weld in Australia.
Surging production of hybrid cars and music players such as Toyota Motor Corp.’s Prius and Apple Inc.’s iPod have driven up demand for rare earths even as China cut export quotas to shore up prices and ensure domestic supplies.
“The tightening of supply regulations provides additional opportunities for Lynas to meet the supply deficit out of China,” Executive Chairman Nicholas Curtis said today in a statement filed to the Australian Stock Exchange.
Lynas rose 3.6 percent to 57 Australian cents at 10:43 a.m. in Sydney compared with a 0.1 percent gain in the benchmark S&P/ASX 200 Index.