China's top 10 REE producers are planning to set up a trading platform for rare earth oxides as early as next month.
China mines roughly 95% of the world's rare earths and is also the globe's top consumer of the 17 elements used in critical components for the automotive, high tech, green energy and defence industries.
The exchange will be located in Baotou city in China's Inner Mongolia region, which is home to nearly half the world's light rare-earth output, reports the Wall Street Journal.
The REE exchange would be similar to the iron ore exchange set up by Beijing in May to give it greater control of the pricing of the steelmaking ingredient. The iron ore exchange has been plagued by low trading volumes however.
Earlier this week China officially rejected a request by the US, Europe and Japan to have a special panel of the World Trade Organization arbitrate a dispute over the country's controversial policy of restricting exports of rare earths.
