Shenghe Resources announced on January 15 that Ganzhou Chenguang Rare Earth New Materials Co., Ltd., a subsidiary of the company, intends to jointly fund the establishment of Shenghe Resources (Jiangsu) Rare Earth Co., Ltd. with China (Jiangsu) Rare Earth Co., Ltd. and Jiangsu Baoli Nonferrous Metal Co., Ltd. Chenguang Rare Earth intends to invest RMB112.5 million (USD17.14 million) to subscribe for 75% of its equity.

Shenghe Resources said that this foreign investment will help deepen and strengthen the relationship and cooperation between the company and the rare earth groups. After the rare earth smelting and separation project of the joint venture company is completed and put into operation, the company's rare earth smelting and separation capacity will be greatly improved and be beneficial to increase its production capacity.