Beijing predicted a domestic shortage of some minerals used for green and high-technology products yesterday, exacerbating concerns it might tighten its grip on global supply of so-called rare earth elements.
China, which supplies about 95 per cent of the global rare earths market, is considering further curbs on export quotas for the valuable minerals used to produce everything from hybrid cars to iPod players.
Export quotas for rare earths have been cut for three years but Beijing is now considering a plan for much sharper curbs which could leave multinational companies scrambling for other sources to supply their own growing needs.
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