According to a report by China Central Television (CCTV), China has officially set up China’s Rare Earth Group.
China’s State Assets Supervisory Commission (SASAC) will take over a 31.21% stake in the new company, while China Minmetals, Aluminum Corporation of China (CHALCO) and Ganzhou Rare Earth Group will each hold a 20.33% stake in the new entity.
Recently, there has been an increasing popularity from investors for companies involved in this sector, which has been highlighted by the recent performance of these companies.
Thus, investors have an optimistic outlook on the development of China’s rare earth industry after the establishment of the state-controlled mega group. Industry experts estimate that the new company will control about 70% of China’s heavy minerals, essential raw materials in the manufacture of high-tech electronics and military equipment, explains Radu Puiu, Financial Analyst at XTB Romania.
In addition, demand for more critical transition metals is expected to increase rapidly over the next 30 years.
According to the International Energy Agency (IEA), in order to meet the objectives of the Paris Agreement, demand will increase (over the next 20 years) by more than 40% for copper and rare metals, by 60–70% for nickel and cobalt, and by more more than 89% for lithium.
However, XTB’s Radu Puiu says that since metals are infinitely durable and recyclable, there is an opportunity to recycle and reuse them from end-of-life products, which reduces some of the pressure. on the terrestrial source.
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