China’s Rare Earth Center to Gain Further Importance

by | 17. Aug 2023 - 15:32 | Economy

Forum discusses the future of the industry in Baotou.

The 15th industry forum kicked off this week in the Inner Mongolia Autonomous Region, the most important center of China’s rare earth industry. The event, which brought together more than 1,800 representatives from government, academia, and industry, according to China Daily, is aimed at further developing the sector. The region’s largest city, Baotou, is important not only because of the world’s most important rare earth mine, Bayan Obo but also because of the processing industry there. By 2025, Baotou is expected to reach a production value of $13.71 billion, according to Ding Xiufeng, party secretary of the city. Rare earth processing capacities, as well as recycling, will be further expanded, and scientific and technological innovations will also be promoted, he added.

For several years, the country’s political leadership has been striving to upgrade the quality of the rare earth industry. China can earn more from intermediate or end products such as e-cars or wind turbines than from unprocessed raw materials, so research and development are being continuously promoted. At the same time, Beijing is securing more influence on pricing and minimizing internal competitive pressure as the industry continues to consolidate.

Photo: iStock/Igor Kutyaev

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