One of China's major rare earth producers announced it was raising money to build a new plant to increase output, The Wall Street Journal reported.

WSJ suggests this signals China's initiatives to consolidate the rare earth industry are proving successful.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co. said it was constructing a processing plant for rare earth oxides in the Guandong province in southern China. In addition to oxides, rare earth elements include metals, alloys and magnets.

China Nonferrous Metal Industry's Foreign Engineering and Construction said it was raising up to 1.79 billion yuan or about $292 million for the plant. The Guandong facility is expected to produce approximately 7,000 tons of rare earth oxides per year.

Production for other materials like rare earth magnets can be harnessed to create advanced technology including smartphones, hybrid vehicles and other gadgets in production or development.

Prices for rare earths have settled in recent years following a spike in prices between 2010 and 2011. This period is marked by China establishing export quotas to reduce its number of rare earth exports. The country controls 95 percent of the global trade in important minerals such as rare earths, WSJ said.

After China reported it was boosting its strategic reserves of rare earths, stocks of North American rare earth elements rose, according to Mining Weekly.

China is a large producer of the world's most powerful magnets, samarium cobalt and neodymium-iron-boron permanent, rare earth magnets.

While purchasing executives may be concerned about China's quotas, they have not been stringent.

Rare earth analyst Frank Tang, of North Square Blue Oak, said the business outlook of miners is positive. Demand for Chinese rare earths is expected to continue increasing due to low labor costs and stricter environmental standards.

Technology manufacturing fuels demand for rare earths
This increase in production comes at the right time as manufacturing activity is reported to be picking up globally and demand for rare earths is projected to increase along with expansion in this sector. Apple suppliers are expected to ump at the opportunity to buy.

Rare earth minerals are included in various iPhone components including its color screen, glass polishing and speakers, according to an infographic designed for Finances Online and made by Ruby Media Corporation.

As the rare earth industry in China ramps up production, consumers looking to buy magnets may see supplies go increase.