China Rare Earth Group in Talks to Acquire Shenghe Resources, Owner of Stake in MP Materials
The China Rare Earth Group is reportedly in discussions to acquire Shenghe Resources, a company that holds a 3% stake in U.S.-based rare earths producer MP Materials (MP). This potential acquisition would strengthen the Chinese government's influence over global rare earth supply chains. The move highlights growing strategic interest by state-backed entities in securing control of critical mineral resources. Rare earth elements are essential for manufacturing high-tech products, including electric vehicles and renewable energy technologies. By acquiring Shenghe Resources, China could further consolidate its dominant position in the sector, which already controls a significant share of global rare earth processing capacity. The transaction would also raise concerns about foreign ownership stakes in key U.S. mineral assets. MP Materials is one of only two active rare earth producers in North America and operates the Mountain Pass mine, once the world's largest producer before it was shuttered due to environmental issues.
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