Baotou Huaxing Expands Rare Earth Metal Production Amid Market Challenges

China Rare Earth

Baotou Huaxing, a prominent Chinese rare earths producer, has successfully launched an 8,000 t/yr rare earth metal expansion project in Baotou, Inner Mongolia, to meet increasing global demand. The project highlights China’s continued efforts to secure its foothold in the rare earths market, a critical sector for technology and energy industries worldwide.

Boosting Production Capacity and Navigating Market Hurdles

The expansion, completed with a 96.13 million yuan ($13.5 million) investment, adds significant production capacity, including 7,300 t/yr of praseodymium-neodymium metal, 500 t/yr of neodymium metal, and 200 t/yr of praseodymium metal. This brings Huaxing’s total rare earth metal output to 12,000 t/yr, alongside its existing capacities of 12,000 t/yr for rare earth oxide and 3,000 t/yr for rare earth polishing powder.

However, despite Huaxing’s expansion, its parent company, Northern Rare Earth (NRE), is grappling with financial challenges. NRE reported a steep profit decline of up to 96.5% for the first half of the year due to reduced demand and falling prices. NRE expects profits to drop to 37-54 million yuan, reflecting the volatility of the rare earth market.