Highlights
- China Northern Rare Earth launches aggressive construction projects across multiple rare earth bases.
- Objective: Optimize production and technological capabilities.
- Key Projects:
- Green Smelting Upgrading
- Huaxing Rare Earth Expansion
- Jinmeng Rare Earth Automation Initiatives
- Aim: Increase production and efficiency.
- Strategic moves indicate China’s intent to maintain global leadership in rare earth resources.
- Potential challenge to Western supply chain resilience.
State-backed conglomerate China Northern Rare Earth announces (opens in a new tab) the ramp up of a mission-critical construction project with an aggressive, all-out approach that not only stabilizes current growth but also builds a foundation for future momentum. The company’s public relations have focused lately on aggressive moves to keep ahead of the market generally, alluding to growing concern in the West, with calls for rare earth element supply chain resilience.
Two Rare Earth Bases
The company recently restarted its major construction projects with sprint-like energy, tackling initiatives that range from structural adjustments and quality enhancements to digital, smart, and environmentally friendly upgrades. These projects are critical parts of China’s plan to develop two major rare earth bases, aiming to optimize product mix and promote green, smart, and efficient development across the entire industry chain.
As Rare Earth Exchanges has reported, two rare earth bases point to the national leverage over rare earth mining, processing, and refining and over the value-added production associated with these critical commodities.
Examples of Flagship Projects
One of the flagship efforts is the Green Smelting Upgrading and Renovation Project. Recognized as the world’s largest and most complete rare earth smelting operation, this project integrates the latest processes, technology, and equipment. With Phase 1 already operational since October 15, 2024, the project is crucial for cementing China Northern Rare Earth’s leadership upstream of the rare earth industry and strengthening national resource security. The second phase is progressing as planned with coordinated teamwork and precise scheduling.
Huaxing Rare Earth Moves
Meanwhile, Huaxing Rare Earth’s expansion—designed to boost annual rare earth metal production to 8,000 tons—is setting new benchmarks. This company first produces and sells rare earth metals, alloys, oxides, and polishing powders.
By deploying the nation’s largest 18KA electrolytic cell and pioneering a fluoride-based process that achieves 100% rare earth element utilization and fluoride recycling, this project enhances production capacity, lowers costs, and improves product quality. Following the success of Phase I, Phase II began production on February 15.
Jinmeng Rare Earth Automation
In addition, Jinmeng Rare Earth’s project to automate a 3,000-ton annual rare earth concentrate separation line and a 2,000-ton NdFeB scrap recycling line is strategically important. Note Baotou Jinmeng Rare Earth Company Limited is a China’s rare earth materials and fertilizer processing and sales company. It is yet another subsidiary of the state-owned China Northern Rare Earth (Group) High-Tech Company Limited.
This initiative will upgrade production processes and help establish a comprehensive, high-capacity rare earth resource utilization framework across northern and southern regions. The project aims to fill gaps in scrap processing, diversify supply channels for key elements like praseodymium and neodymium, and ensure a secure and resilient supply chain. With the basic infrastructure already in place, the raw ore automated separation line is expected to be operational by the end of June, and the scrap recycling line should be ready for trial production by year-end.
Competitive Factors
These reported moves in China’s rare earth sector have significant implications for the West, particularly for the United States. As China advances its technological and production capabilities, its control over critical rare earth resources becomes even more pronounced, or that’s the goal.
This could further limit the West’s access to essential materials needed for high-tech and defense industries, prompting Western policymakers and industry leaders to accelerate efforts to diversify supply chains and invest in domestic production. The intensified pace of project construction highlights the strategic importance of rare earth elements in China and underscores the competitive pressures facing global markets.
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