New China Rare-Earths Group will become world’s second-largest rare earths producer

December 31, 2021

In an effort to strengthen its rare earth element production, the China Rare-Earths Group has formed from the rare earth segments of government owned China Minmetals Corp, Aluminium Corp of China, and Ganzhou Rare Earth Group Co. Chinese state broadcaster CCTV reported that this conglomerate is intended to allow for the better allocation of resources, greener development and hastening mine development in southern China.

Based on issued quotas for the first half 2021, the merged company is in line to be the world’s second-largest rare earths producer – in terms of output – after China Northern Rare Earth Group, accounting for around 70% of the country’s heavy rare earths production.

Patricia Mohr, independent economist, told The Northern Miner, “The merged company will increase the control over prices in the international market place and could lead to even higher prices in the coming year.”

As an example, Mohr noted that the price of neodymium oxide (99% China FOB), for instance, hit $142,300 per tonne on December 8, a 79% year-on-year increase, and the highest level since May 2012. In mid December, terbium oxide (99.9% FOB China) reached $1,730 per kilogram (up 68% from 2020), while dysprosium oxide (99% FOB China) has reached $456 per kilogram (up 57% year-on-year).

“It’s great for the business in the sense that I think the West is increasingly realising that there needs to be an integrated localised supply chain,” Jim Litinsky, CEO of MP Materials, told Bloomberg. MP Materials is noted as the only US producer of rare earths.

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Phoenix Sintered Metals: A story of transformation, growth and community from America’s PM heartland
  • World PM2024 Yokohama: The stage is set for the PM industry to find a path to sustainable growth
  • The state of Europe’s hard magnets industry and the challenge of optimising the mass production of Nd2Fe14B permanent magnets

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link