Rare earth polishing powder plant: Shenghe expands high-performance capacity in Sichuan

Shenghe

A new rare earth polishing powder plant is moving forward in Leshan, Sichuan. Leshan Shenghe is building the rare earth polishing powder plant to capture fast-rising optical glass demand. As a result, the project targets higher-value rare earth processing, not just raw materials.

The company plans 15,000 t/yr of high-performance rare earth polishing powder in the first phase. It will invest 468mn yuan ($67.01mn) to complete construction and commissioning by December 2026. Meanwhile, the plant will focus on cerium-containing polishing powder used in precision finishing.

Optical glass demand drives a push into higher-value rare earth products

Optical glass growth is pulling more high-consistency polishing materials into supply chains. Semiconductor tools and panel displays also raise quality requirements for polishing powders. Therefore, producers now compete on particle control, purity, and process know-how.

Global polishing powder consumption stands near 60,000 t/yr today. China accounts for about 50,000 t/yr, or roughly 83pc of the total. However, Japan, South Korea, and the US still lead high-performance grades and core technology.

Phase-two feedstock strategy supports import substitution and stability

Shenghe designed a second phase to secure inputs for the first phase. The plan adds 30,000 t/yr of rare earth carbonate capacity after the first phase starts. Therefore, the second phase aims to stabilize feedstocks and improve cost control.

The company expects to finish second-phase construction by June 2028. It also says the rare earth polishing powder plant can reduce reliance on imported high-end material. Meanwhile, the project signals a broader shift toward specialized rare earth downstream products.

The Metalnomist Commentary

This buildout shows China is targeting the “technology layer” of rare earth value chains. However, equipment qualification and customer validation will decide real pricing power. The leaders will lock in repeatable quality, not just nameplate tonnage.