Baotou Rapidly Expanding REE Metals and Alloys Production Capacity
So far 20,000 tonnes-per-annum of new production capacity under development in last two months alone
Today it was announced by the Baotou Economic and Information Committee that China’s Ministry of Industry and Information Technology (“MIIT”) approved development of three additional rare earth metal and alloy production lines in the Jiuyuan Industrial Park in Baotou, Inner Mongolia – a region often referred to as China’s Rare Earth Kingdom.
Among the new capacity approved is a 5,000 tonne-per-annum rare earth metals and alloys production line to be developed by Baotou Xinhao Rare Earth New Materials, as well as a 2,500 tonne-per-annum rare earth metals and alloys production line to be developed by Baotou Jigan Rare Earth New Materials.
Baotou Jigan Rare Earth New Materials also received approval for development of a 500 tonne-per-annum hydrogen storage alloy production line, which bodes well for rare earth demand in NiMH batteries if MIIT sees a need to approve additional production capacity for anode precursor.
In support of this, our ‘EV Battery Capacity and Battery Metals Tracker’ indicates that global AB5 alloy consumption for passenger HEV batteries increased by 8% in 2018.
Looking ahead, we expect AB5 demand to continue growing at a rate similar to overall HEV sales globally since the sales-weighted average HEV battery capacity (in kWh) has more-or-less plateaued.
Overall, in the past two months companies in Baotou, including the aforementioned, have collectively started to build-out 20,000 tonnes-per-annum of new REE metals and alloy production capacity.
EV Battery Capacity and Battery Metals Tracker
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