China's Grip on Rare Earth Industry Tightens as Prices Drop

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Rare Earth Elements Nouvelles

China,Rare Earth Prices,State-Owned Enterprises

China's state-owned rare earth companies face financial challenges as prices decline, with the government tightening its control over the industry.

Rare earth mineral companies in China have been stung by declining prices at the same time the government 'tightens its grip' on the industry, according to Nikkei Asia. Companies like Rising Nonferrous Metals, a rare-earth miner listed in Shanghai, are losing money this year, a stark contrast to last year's profitability. The company is blaming 'drastic slide in sales prices of its major rare-earth products,' according to the report.

China holds the world's largest reserves of 17 rare-earth elements, vital for tech products like smartphones, electric vehicles, wind turbines, and missile defense systems. Amid rising U.S. tensions, China is increasingly leveraging these resources. Last month, the central government mandated state control over rare-earth resources to ensure national resource security and industrial security.

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