Highlights

• Jiangxi Province released three rare earth oxide capacity replacement plans involving local processors.
• The plans reallocate 11,172 tpa among affiliated entities without increasing net production.
• The proposals consolidate existing licensed capacity through transfers between companies like Ganzhou Rare Earth Longnan and Zhongce Nanfang.
• The focus is on structural optimization over expansion.
• These capacity replacements reinforce China's strategy to concentrate control within its rare earth system.
• The strategy maintains strict production ceilings and environmental compliance.

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China’s Department of Industry and Information Technology of Jiangxi Province has released for public comment three rare earth oxide (REO) capacity replacement plans involving local processors, according to an Asian Metal report (opens in a new tab) dated December 18, 2025. The proposals involve reallocating existing licensed capacity among affiliated or nearby entities rather than authorizing net-new production.

Under The Filings

Ganzhou Rare Earth Longnan Smelting Separation Co., Ltd. plans to build 5,500 tpa (REO) of smelting and separation capacity, replacing 3,000 tpa of its own existing capacity and 2,500 tpa transferred from Zhongse Nanfang Rare Earth (Xinfeng) Co., Ltd.. Separately, Longnan Baogang Xinli Renewable Resources Development Co., Ltd. proposes 3,100 tpa of rare earth waste utilization capacity, replacing 2,300 tpa of its current operations and 800 tpa from Jiangxi Huake Rare Earth New Materials Co., Ltd.

A third plan would see Xinfeng Baogang Xinli Rare Earth Co., Ltd. build 5,572 tpa (REO) of resource utilization capacity, replacing 2,372 tpa of its own capacity and 3,200 tpa transferred from Ganzhou Dexin High‑Tech Materials Co., Ltd.

REEx Review

The proposals do not indicate a province-wide increase in rare earth oxide output, nor do they signal policy liberalization. Capacity replacement is a long-standing Chinese regulatory mechanism designed to consolidate operations, improve environmental compliance, and maintain strict production ceilings.

Claims that these moves represent expansion, export signaling, or market manipulation would be speculative and are not supported by the disclosed information. At this stage, the plans remain subject to public comment and regulatory approval, and their impact is primarily structural rather than volumetric.

Why This Is Relevant

For global buyers and policymakers, Jiangxi’s actions reinforce a familiar pattern—China is optimizing and concentrating control within its rare earth system, not relinquishing it. The developments underscore why non-Chinese processing and recycling capacity remains a strategic priority, even when headline capacity numbers appear stable.

Rare Earth Exchanges™ will continue to track approvals, implementation timelines, and any downstream effects on regional supply concentration or pricing.

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