What they totally fail to understand is Shenghe's control is not via equity (as yet) but via mkt demand, simply there is no other mkt of scale available to wannabe's other than the Dragon, and Shenghe is Beijing's appointed gatekeeper, although Nth RE subsidiaries now also play locking down ROW resource.
Have to think the Dragon would prioritise the much richer, proven & functioning resource @ Mt Pass (just 14% equity) but once they have an asset in their clutches unlikely they will ever let it loose, to the point they will slowly suffocate existing equity for pennies.
Punters there, and elsewhere, appear to cling to the wide eyed fantasy of EV growth stimulating magnet production without pausing to think just where that demand growth is occurring!
China finally getting supply side under control but at the same time firming their grip on demand with ~85% of NdFeB manufacture, and importantly on going rotation to the high end.
Only Japan has any other mkt share of consequence ~15%, ~45% of the high end, and they now have a well established supply chain, one that will become further entrenched over the next year or so.
The current flight to concentrate perfectly illustrates the (panda) bear trap that confronts the wannabes.
