Succumbing to global pressure, China, the world's hub of rare earths, has moved to increase its self-imposed export quota on the precious elements essential to making hybrid vehicles and key household appliances as well as other hi-tech applications.

In a statement released Wednesday, the Ministry of Commerce said the second batch of rare earths to be released will be at 9,770 tonnes, resulting in a full-year quota of 30,996 tonnes, up 2.7 per cent over last year's 30,184 tonnes. The ministry typically issues the quota twice a year.

Of the second batch, 8,537 tonnes are light rare earths while medium to heavy metals are at 1,233 tonnes.

"The government already said last year that it would keep its quota largely unchanged in 2012, and it's now signalling to the wider world not to worry," analyst Frank Tang told Dow Jones.

But China, whether it admits it or not, fell to global pressure.

"International pressure on China (to loosen export controls) has been quite high and the case has reached the World Trade Organisation," Mr Tang said.

Prices of rare earths have escalated in the world market, no thanks to China's tight export controls. But this has persuaded rare earths miners in the United States, Canada and India to resume production of the precious elements after closing their respective mines years ago.

But analysts belie the jump in export quota could be just to sway the global anger China had effected upon itself since imposing them in 2009.

Data from China customs on Tuesday revealed exports of rare earths were down 36.7 per cent in the first seven months of the year.

Last year, exporters used up only around half of quota allocated for 2011. The country shipped out a total 16,900 tonnes of rare earths last year, down 58 per cent from the previous year.