China Northern Rare Earth Group (北方稀土)

Fast facts

Year Founded
1961

HQ Location
Baotou, Inner Mongolia, China
Publicly Traded?
Yes

Overseas Operations
Yes

US Sanctions
No
Military Affiliation in China
Yes

Revenue

Valuation

USD 19.7 B

*Valuation is reported as market capitalization. It was converted from RMB using the exchange rate from April 19, 2022 20:56:42.

Employees

9,111

China Northern Rare Earth (北方稀土 běifāng xītǔ), the successor of 1961 Baotou Steel 8861 Rare Earth Experimental Plant, is a China-based supplier of rare earth products. It produces various types of rare earth products in 11 categories, more than 50 kinds, and nearly 1,000. The company’s main products include rare earth concentrate, rare earth carbonate, rare earth oxides, rare earth salt products, rare earth magnetic materials, polishing materials, hydrogen storage materials, luminescent materials, nickel-hydrogen battery, and rare earth permanent magnet electron spin resonance (ESR).

At present, the company’s smelting and separation capacity is 80,000 tons/year, and the rare earth metal capacity is 10,000 tons/year. Driven by power rationing, tight supply, and increased production costs in China, the company raised didymium oxide prices by over 20% in November 2021.

China Northern Rare Earth Group distributes its products in the domestic market and overseas markets. In 2020, the company gross profit of rare earth export business only stood around 10 %. As of 2021 Quarter 3, the company has exported 36,000 tons of rare earth, with a 35% increase in exports as compared to last year.

China Northern Rare Earth Group Sanctions

While at this time it appears that this company is not the subject of any U.S. or other global sanctions, it is important to note that Chinese companies tend to have more opaque organizational structures than their Western peers. Chinese companies’ affiliated brands, operating units, and overseas subsidiaries are not always obvious or even identifiable. Given this, a Chinese company may not be the subject of sanctions, but one of its subsidiaries may be, thus making it difficult to accurately ascertain a company’s full sanctions status.

China Northern Rare Earth Group Reputational Disclosures

Rare earth minerals are crucial for the manufacturing of American F-35 fighter jets and other sophisticated weaponry. China supplies 80% of the U.S.’s rare earth imports. For national security concerns, China is looking at banning sales of technology needed to refine and purify rare earth to overseas countries. China Northern Rare Earth Group is the key producer in the world for rare earth smelting and separation. 

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