Highlights
- China’s Baotou Rare Earth Products Exchange evolves from a regional to a national hub.
- Reported a 52.63% increase in trading volume in 2025.
- Platform introduces digital bidding.
- Introduces capacity pre-sales.
- Expanded product range with 89 tradeable rare earth categories.
- China is innovating the rare earth marketplace infrastructure through technology.
- Focus on standardization and comprehensive financial services.
China’s Baotou Rare Earth Products Exchange (known as “稀交所”) is rapidly transforming from a regional trading platform into a national hub for rare earth commerce—and its momentum may have significant implications for U.S. and Western supply chain resilience. In the first half of 2025, the Exchange reported a 52.63% year-on-year increase in trading volume and a 6.03% rise in transaction value, with 1,231 registered enterprises participating—strong indicators of both market demand and institutional confidence.
REEx Showcases
Rare Earth Exchanges (REEx) earlier this year showcased the new Chinese exchange. The Baogang Group Products Exchange we noted has quietly launched a competitive digital bidding platform for raw materials procurement—an unassuming but strategically significant move that strengthens China’s grip on the global rare earth supply chain.
Since its March 2025 debut, the platform has cut procurement times by 40% and prices by 8%, while centralizing market data and enforcing national standards for compliance and transparency. REEx cannot verify these numbers.
Backed by the State Council’s modernization agenda, the platform is part of China’s broader push to digitize, standardize, and consolidate its rare earth ecosystem, giving domestic industries faster, cheaper, and more coordinated access to critical materials. While Western countries continue to focus on mining and tariffs, China is building the infrastructure—the systems—that streamline logistics and amplify pricing power. For the U.S. and its allies, we suggested that the takeaway was clear: the future of rare earth competitiveness won’t be won solely by digging—it will depend on who controls the data, standards, and platforms of trade.
Market Innovation: Digital Auctions and Capacity Presales
Among the most notable developments: the rollout of a competitive bidding platform for raw material procurement, launched in March. This new system enables real-time bidding on supply contracts, improving price transparency and cutting procurement costs by 6.62%, or roughly $550,000 USD. Over 180 companies have participated in more than 70 successful auctions, with a 93% transaction success rate.
Additionally, Baotou is piloting a “capacity pre-sale” model, where future production can be locked in at pre-set prices, with tradable delivery orders—providing producers a hedge against volatility. A standardized operations manual for this new format has already been published, signaling readiness for full-scale launch.
Expanding Product Range and Geographic Reach
Baotou has increased its tradeable rare earth categories to 89, including high-praseodymium cerium carbonate and polymer additives. It also debuted a dedicated “rare earth waste trading section” to facilitate secondary market recovery. Regional trading desks have been set up in Ganzhou and Ningbo, with new warehouse partnerships to enable localized delivery, especially in China’s industrial heartlands.
Toward Price Leadership: Data-Driven Index Construction
With 26,000+ price quotes collected from 150+ companies, the exchange now publishes a daily rare earth price bulletin and has released 25 pilot transaction-based indices. A long-term trend index began testing in June. In cooperation with Xinhua Index, Baotou is formalizing a national pricing benchmark, which it aims to publish via major financial media platforms.
Financial Services: A New Layer of Market Infrastructure
In March, Baotou launched its proprietary “XiRongTong” financing program. With participation from five major Chinese banks, the platform offers 13 supply-chain financing products, including credit-based and collateralized lending tailored for rare earth firms. So far, six enterprises have received over \45 million (~$6.2 million USD) in credit.
Implications for the West
China is not just refining rare earths—it’s refining how they’re bought, sold, priced, and financed. The Exchange is standardizing, digitizing, and monetizing the REE value chain. With the U.S. and its allies still building the first legs of mine-to-magnet infrastructure, Baotou’s expansion is a reminder: China isn’t just ahead in capacity—it’s innovating the marketplace itself.
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