China has approved a merger of several of its major rare-earths companies, creating a goliath that will cement the country’s control over the sector, reports Bloomberg. The new company will be formed of the rare-earth units of state-owned enterprises including China Minmetals Corp., Aluminum Corp. of China and Ganzhou Rare Earth Group Co., according to a stock exchange filing from China Minmetals Rare Earth Co.
The group will accelerate the development of mines in the south, state media reported. Bloomberg also reported in September that China was planning to create two of these behemoths—one in the country’s north and the other in the south, with each focusing on a different subset of rare earth materials.
China controls most of the world’s mined output of rare earths, a broad group of 17 elements that are used in everything from smartphones to fighter jets, and has a stranglehold over processing.