China Rare-Earths Group is the new entity formed after state-owned rare earth producers merged as Beijing seeks to maintain leadership in the industry, Bloomberg reports.
- The new global giant in rare earths will see companies such as the China Minmetals Corp, Ganzhou Rare Earth Group Co., and Aluminum Corp of China coming together.
- The move to merge the rare earths giants seeks to streamline resource allocation, upgrade deep processing, and realize goals in green processes.
- Jim Litinsky, the CEO of MP Materials, says the combination reflects China’s goal to lead in the years of electrification by feeding the rare earths supply chain.
- The combination comes even as China leads in world’s rare earths production, with about 17 elements used in numerous applications. The dominance has been a concern, with the US importing 80% from the country amid a threat to initiate controls at the height of trade controls.
- China’s Assets Supervision and Administration Commission is expected to hold a 31.21% share in the combined entity. China Minmetals, Chinalco, and Ganzhou Rare Earth Group will have a 20.33% stake each.
Rare earths have hit a boom this year with higher demand than supply, with the increasing production of electric vehicles expected to open new opportunities for the industry. 000831 is down -9.98%, 601600 is down -5.44%