China Northern Rare Earth to Establish Joint Venture for Rare Earth Metal Alloy Production Line

China Northern Rare Earth (Group) High-Tech Co., Ltd. (600111.SH) has announced plans to form a joint venture with Ningbo Funeng Rare Earth New Material Co., Ltd. The new entity, to be named Northern Funeng New Materials (Inner Mongolia) Co., Ltd., will be established with a capital contribution of 112 million yuan from China Northern Rare Earth using its own funds. The joint venture will undertake the construction of a production line project with an annual capacity of 10,000 tons of rare earth metal alloys. China Northern Rare Earth will serve as the controlling shareholder of the new company, which will be included in its consolidated financial statements. This investment is a strategic move to enhance the company's supply capacity for rare earth metal products, accelerate the development of new productive forces, and strengthen the industrial chain. By leveraging complementary advantages and comprehensive collaboration, the partners aim to develop competitive business models and profitable products. The initiative is expected to position the new company as a leader in intelligent rare earth metal production, ensuring high-quality raw material supply for downstream industries and securing the stability of the industrial and supply chains. The project aligns with national industrial policies and the company's strategic planning, supporting the overall interests of the company and its shareholders.