China Rare Earth Group Targets Shenghe, Consolidating US Supply Chain Control

China Rare Earth Group is in discussions to acquire Shenghe Resources, according to Reuters sources. Shenghe Resources currently holds a 3% stake in U.S. producer MP Materials.

The acquisition would grant Beijing an indirect holding in a key U.S. supply chain asset. The U.S. Department of Defense remains a significant shareholder in MP Materials.

Negotiations for a controlling stake in Shenghe began earlier this year. The deal aims to further consolidate Beijing’s dominance over the global rare earths market.