Shenghe Rare Earth Expansion Targets Higher Capacity and Overseas Resources

Shenghe Resources

Shenghe rare earth expansion plans for 2026-28 show the Chinese producer moving to strengthen its position across rare earth processing, recycling, overseas mining and heavy mineral supply. The company aims to raise revenue, expand capacity and secure more seaborne resource reserves over the next three years.

Shenghe rare earth expansion will be supported by stronger market conditions. The company expects 2025 profits of 790mn-910mn yuan, sharply higher than a year earlier, helped by higher rare earth prices and increased sales volumes.

Shenghe rare earth expansion also reflects China’s broader strategy to deepen control across rare earth value chains. The company already operates across oxide separation, metal processing and scrap recycling, while also extending into polishing powders, catalysts and magnetic materials.

Rare Earth Capacity Growth Anchors the 2026-28 Plan

Shenghe aims to lift rare earth oxide output capacity to more than 30,000 t/yr. It also plans to keep operating rates above 95% across its rare earth processing and recycling businesses.

The company plans to raise rare earth scrap recycling capacity to 15,000 t/yr during 2026-28. This is strategically important because recycling can improve feedstock security and reduce dependence on primary mined supply.

The Ngualla rare earth project in Tanzania is central to Shenghe’s overseas growth plan. Shenghe acquired the project in 2025, gaining access to 4.62mn t of rare earth oxide resources and 887,000t of rare earth oxide reserves.

Construction at Ngualla is targeted for completion in 2027, with commercial production expected in 2028. If delivered, the project could strengthen Shenghe’s access to non-domestic rare earth concentrate and support its long-term processing growth.

Heavy Minerals Add Zircon and Titanium Growth Platform

Shenghe is also expanding beyond rare earths into zircon-titanium heavy minerals. The company aims to increase zircon-titanium heavy mineral capacity to more than 1.5mn t/yr and raise domestic beneficiation plant utilisation above 80%.

Revenue from zirconium and titanium businesses is targeted to exceed 30% of total revenue. This gives Shenghe a broader industrial minerals platform linked to ceramics, refractories, titanium feedstocks, zirconium chemicals and mineral sands processing.

The company is advancing overseas heavy mineral projects in Tanzania and Madagascar. It plans to expand Nyati capacity to 300,000 t/yr in 2026 and 500,000 t/yr in 2028, while the Jiacheng plant in Madagascar is expected to produce its first heavy mineral concentrate in 2027 and reach 1mn t/yr by 2028.

Shenghe also plans to invest at least 3bn yuan over the next three years in overseas resources, domestic rare earth deep-processing, and zirconium and titanium businesses. This underlines its ambition to become a more integrated rare earth and heavy minerals supplier.

The Metalnomist Commentary

Shenghe’s plan shows that China’s rare earth leaders are no longer focused only on separation capacity. The next stage is securing overseas ores, scaling recycling, and building downstream materials exposure before global supply chains diversify further.