China Cutting Rare Earth Exports By 11%

In its first round of permits for the new year, China has cut rare earth export quotas by 11%.

reports that this could worsen a global shortage of minerals that are needed for a wide range of items, including smartphones, hybrid cars and guided missiles. The

says that 14,446 metric tons of rare earth exports will be split among 31 companies, compared to 16,304 tons allotted last year during its first round. The government is expected to issue a second round of export quotas later in the year. This poses quite the issue for companies like Toyota Motor Corporation

, which has been seeking alternative supplies. China's exports currently account for more than 90% of the world's supplies. Pre-market, China Shen Zhou Mining & Resources

is trading up 10.17% at $4.55 per share; Molycorp Inc.

is trading up 9.02% at $49.44 per share; and Rare Element Resources Ltd

is trading up 15.45% at $11.73 per share.