Xin Lang Cai Jing·2026-01-26 02:25Core Viewpoint - The acquisition of 86% of Jiangyin Jiahua New Materials Resources Co., Ltd. by Shenghe Resources for 182.7 million RMB highlights the strategic importance of rare earth elements, particularly dysprosium, in the AI hardware industry [1][3]. Group 1: Acquisition Details - Shenghe Resources announced a quiet acquisition of 86% of Jiangyin Jiahua for 182.7 million RMB [1]. - Prior to the acquisition, Jiangyin Jiahua was 95% controlled by Canadian NEO Company, and it will now become a subsidiary of Shenghe Resources [3]. Group 2: Industry Significance - Jiangyin Jiahua is recognized as a global leader in rare earth processing, specifically for its ability to produce dysprosium at a purity level of 99.999% (5N) [3]. - Dysprosium is critical for manufacturing capacitors used in AI hardware, such as NVIDIA's Blackwell AI chips [3]. Group 3: Market Context - China holds a significant portion of the global rare earth refining capacity, with heavy rare earths like dysprosium and terbium being particularly valuable [4]. - In 2022, the total value of rare earth imports from China to the U.S. was approximately 170 million USD, equivalent to about 10 billion RMB, highlighting the strategic leverage China has in this market [8]. Group 4: Competitive Position - Following the acquisition, Shenghe Resources will control the only two dysprosium refining companies globally, solidifying its dominance with over 99% market share in dysprosium [8].