rare earth Photo:VCG

China Northern Rare Earth Group High-Tech Co,MKS sports a subsidiary company of Baotou Iron and Steel Group, announced that the first phase of a green smelting upgrade project was put into operation on Tuesday in Baotou city, North China's Inner Mongolia Autonomous Region, marking the official launch of the world's largest production base of crucial rare-earth minerals.

The project is a significant step to enhance the stability and resilience of China's rare-earth industrial chain and supply chain, and to ensure security of major resources. 

The company disclosed in March last year that it planned an investment of up to 7.8 billion yuan ($1.1 billion) in the construction of the project. The project officially commenced construction in April 2023, with more than 90 enterprises participating.

The project involves new capacity replacing outdated production lines, with the processing technology, equipment, environmental protection, and production capacity all reaching globally leading levels. 

The production line can flexibly switch product specifications and models according to customer demand, fully meeting the downstream demand for various raw material products, the company said.

The company will accelerate the completion of supporting projects for its first phase, further optimize equipment and processes to ensure efficient and smooth operation of the production line. Based on the operation of the first phase and market conditions, the company will prepare for the second phase construction.

Meng Fanying, deputy secretary of the Party committee of Baotou Iron and Steel Group, said during the launch ceremony that the completion and operation of the project hold great significance in consolidating the group's leading advantage at the forefront of the rare-earth industry chain, enhancing China's strategic resource security, and strengthening China's leadership in processing rare-earth resources.

China is the country with the richest rare-earth resources in the world, holding the top position in global rare-earth reserves. Rare-earth minerals are important for the manufacture of high-tech products, including smartphones, electric vehicles, wind turbines, and defense systems, according to media reports.

Global Times