State-controlled China Rare Earth Group is in advanced talks to acquire Shenghe Resources, according to sources cited by Reuters. Neither the companies nor China’s Commerce Ministry had publicly confirmed the discussions at our check. There is no completed deal.

A purchase would bring under the state umbrella one of the last major Chinese firms in the sector with still-significant private influence. Rare earths go into electric vehicles, turbines, electronics and defence systems; Chinese production quotas go mainly to state companies.

Shenghe owns about 3% of MP Materials, a US group in which the Department of Defense is the largest shareholder. The stake is a minority holding; MP Materials says Chinese investors do not control operations. The indirect link may still draw US authorities’ attention.

Consolidation could ease Shenghe’s access to quotas. It does not, by itself, change ownership of American mines.

Reuters’ sources are unnamed. The headline and text describe reported talks, not a signed takeover. Without an official notice, any price or timetable remains speculation.

Until a stock-exchange filing or a public agreement, the consolidation remains a possibility, not a fact.

Image: Mountain Pass mine, California / Wikimedia Commons. An MP Materials US mine in which Shenghe holds about 3%, not a Chinese plant. Cropped to 16:9.

Source consulted: China Rare Earth Group in talks to buy MP Materials shareholder Shenghe Resources | Reuters; MP Materials investors.