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China Rare Earth Group Eyes Shenghe Resources-and an Indirect Stake in MP Materials

Sep 18, 2026

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Highlights

  • State-owned China Rare Earth Group is in talks to acquire Shenghe Resources, which holds roughly 3% of MP Materials.
  • The U.S. Department of Defense is MP Materials' largest shareholder via preferred stock and warrants representing ~15% on a converted basis.
  • A completed deal could place Chinese and U.S. state interests on opposite sides of MP Materials' shareholder register.
  • Uncertainty remains over whether Shenghe's overseas holdings, including its MP stake and Australia's Peak Rare Earths, would survive the transaction.
  • The key question for investors is not just whether CREG buys Shenghe, but what happens to that 3% MP stake if it does.

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Companies

China Rare Earth GroupMP MaterialsPeak Rare EarthsShenghe Resources

Countries

AustraliaChinaUnited States

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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V
Vin

Member

40 messages 4 likes
#1 Sep 20, 2026

May I assume this would not be a favorable development for US and non-China magnet producers

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John

Administrator

638 messages 474 likes
#2 Sep 21, 2026

I don't see it changing anything in the west. Its just China formalising/rationalising their industry. I would assume China will divest from MP at some point. Why bother holding.

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V
Vin

Member

40 messages 4 likes
#3 Sep 21, 2026

I'm not so sure it's that simple. After all, it is China we are talking about. V

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John

Administrator

638 messages 474 likes
#4 Sep 22, 2026

The Rare Earth Observer has some good insights on this merger. The Shenghe Resources group were really 'told' what to do anyway...with the other two dominating.

It is all about control. And I guess this just makes it easier.

China used to have a myriad of ways for rare earths to get out of China and into the global market (legal and 'semi' illegal)

Now it is tightly controlled by a handful of entities.

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