It is reported that China is planning to merge rare-earth-related companies, a strategic material, to establish the world’s largest rare-earth state-owned enterprise.
Chinese media, such as the Maeil Economic Daily, reported on the 6th that a giant company that processes and produces rare earths is scheduled to be launched.
Companies subject to merger include China Wuguang Group, China Aluminum, and Ganzhou Rare Earth Group.
The Chinese government is said to have already approved the establishment of the company.
The name of the company has been decided as ‘China Rare Earth Group’ (中國稀土集團), and Chinese media added that it will become the world’s largest when its headquarters is established in Jiangxi province this month.
He explained that the establishment of the new company is to maintain a leading position in the global rare earth supply chain.
If China establishes a giant rare earth enterprise, it is expected to strengthen its pricing power and consolidate its dominance in the global market.
Rare earths are key materials used in cutting-edge industries such as smart phone and electric vehicle batteries as well as stealth fighters.
It is known that China accounts for more than 70% of the world’s rare earth production.
The US Geological Survey has raised the possibility that China will weaponize rare earth elements amid the US-China conflict.
Earlier, China decided to extract 168,000 tons of rare earths this year, 20% more than last year.
/yunhap news
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