Highlights
- China Northern Rare Earth (CNRE) completes leadership shake-up, reinforcing national strategic priorities in the rare earth industry.
- China continues to invest heavily in rare earth processing, controlling 85% of global rare earth refining and moving toward higher-value applications.
- Beijing’s long-term strategy aims to monopolize the rare earth supply chain, pressure Western nations, and advance national technological and security objectives.
In a decisive leadership shake-up, China Northern Rare Earth (CNRE), the world’s largest producer of rare earth elements (REEs), convened its first extraordinary shareholders’ meeting of 2025, finalizing a new Board of Directors, Supervisory Board, and executive leadership team. The restructuring underscores China’s strategic commitment to maintaining dominance in the global rare earth industry while reinforcing its alignment with national priorities.
Rare Earth Exchanges recently reviewed the company’s financial metrics, finding generally an overvalued firm IF it were subject to true market forces.
At the meeting, Liu Peixun, a senior executive from the state-owned Baogang Group, was reaffirmed as Chairman, with Wang Huiwen appointed Vice Chairman. The board swiftly approved a slate of strategic initiatives, including expanding hydrometallurgical refining capacity and developing inorganic functional materials—an indication of China’s ongoing push toward higher-value applications in rare earth processing.
This push cannot be underestimated. China continues to invest heavily in the “two China rare earth bases” concept. It’s all about controlling the separation, refining, and processing, and that added manufacturing involving components, parts, and assemblies. These, in turn, are used as the inputs for the world’s high-tech products, from green energy and automotive to electronics to space and military-based products.
Hydrometallurgical refining is the critical, water-based chemical process that transforms mined rare earth ores into high-purity materials essential for advanced technologies, from military systems to electric vehicles. This process involves leaching ores with acids or alkaline solutions, selectively extracting individual elements, and purifying them into usable forms like oxides and metals. As Rare Earth Exchanges regularly reports, China dominates this stage, controlling 85% of global rare earth refining, leaving Western nations heavily dependent and vulnerable to supply chain disruptions. Without urgent investment in domestic refining capacity, the U.S. and its allies risk remaining at the mercy of China’s strategic grip on these critical materials. The advancement of hydrometallurgical refining represents China’s furious effort to maintain a substantial lead over the West, particularly the USA.
Interestingly, the company announced a land-use transfer to the government during this period, possibly suggesting ongoing consolidation of strategic resources under state control.
Emphasis of Liu Address
Liu’s address to the new board emphasized integrating China’s rare earth ambitions with national security, technological advancement, and sustainability initiatives. He stressed the need to enhance international competitiveness through innovation, maintain risk mitigation strategies in production and environmental compliance, and deepen the integration of ESG principles into corporate governance—all usual themes that come out of these state-owned board rooms.
Importantly, Liu hinted at upcoming reforms under China’s forthcoming “15th Five-Year Plan,” signaling potential regulatory and industrial shifts that could further entrench China’s dominance—or so the CCP hopes.
Implications for the West and the U.S.
This leadership reset is not just bureaucratic maneuvering; it is a clear signal that China is tightening its grip on the rare earth supply chain while preparing for the next phase of industrial and technological expansion, as we have discussed in our ongoing analyses via reporting.
The strategic emphasis on innovation and self-sufficiency in refining and functional material applications suggests that China is moving beyond raw material extraction into higher-margin, value-added rare earth industries—potentially reducing its reliance on foreign technology. Again, this is what is known as “Two Rare Earth Bases China.”
For the U.S. and its allies, this reinforces what we at Rare Earth Exchanges believe to be an urgent reality: China is maintaining its dominant position in rare earth mining and fortifying its capabilities in advanced materials critical for defense, clean energy, and high-tech industries. Remember the three-phased, multi-decade plan discussed in Rare Earth Exchanges. See below:
| Phase 1 | Monopolize rare earth supply chain |
| Phase 2 | Dominate value-added production |
| Phase 3 | Emerge as global leader overseeing digital currency |
*we are well into phase 2, with phase 3 manifest in China’s digital currency plans
The approval of new refining projects underscores Beijing’s ability to dictate global rare earth pricing and availability, putting pressure on Western nations that remain heavily dependent on Chinese supply chains.
With China continuing to integrate rare earths into its broader national security framework, Western policymakers and industry leaders must accelerate domestic production, processing, and recycling efforts. The message seems clear to those of us monitoring this situation with clarity—Beijing is playing the long game, and unless the U.S. and its allies take bold action, they risk permanent dependence on a strategically controlled supply chain.
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