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Baotou’s Rare Earth Revolution: How Inner Mongolia Aims to Dominate the Global Supply Chain by 2035

Inner Mongolia plans to make Baotou a rare earth hub by 2035, boosting China‘s global REE dominance.

November 13, 2025, 10:22 AM

Aerial view of Baotou City showing a large roundabout, central park, and dense urban development.

A wide-angle aerial shot showing the dense urban landscape of Baotou City, Inner Mongolia, and a major road intersection. By ZCOOL HelloRF / Shutterstock.com.

Executive Summary

Inner Mongolia has unveiled a 10-year plan to transform Baotou into a world-leading hub for rare earth elements (REEs) and critical materials by 2035.

The ambitious strategy aims to bolster China’s dominant position in the global REE supply chain, particularly for the new-energy industry, by boosting mining, refining, and magnet production.

Inner Mongolia is a critical region for global rare earth supply, housing the Bayan Obo mine, which accounts for over 40 percent of the world’s known REE reserves and nearly half of global production.

The Story So Far

China is strategically strengthening its dominant global position in the rare earth element (REE) supply chain, particularly for the burgeoning new-energy industry, by leveraging Inner Mongolia’s critical Bayan Obo mine, which holds over 40 percent of the world’s known REE reserves. This long-term commitment is exemplified by a 10-year development plan for Baotou, Inner Mongolia’s second-largest city, aimed at boosting mining, refining, and magnet production to ensure China’s control over these essential critical materials.

Why This Matters

Inner Mongolia’s ambitious 10-year plan to transform Baotou into a world-leading rare earth hub will significantly solidify China’s dominant position in the global rare earth supply chain, particularly in the production of magnets essential for the new-energy industry like electric vehicles and wind turbines, thus reinforcing China’s long-term control over critical materials and prompting other nations to redouble efforts in diversifying their own supply sources.

Who Thinks What?

Inner Mongolia, through its 10-year development plan, aims to transform Baotou into a world-leading hub for rare earth elements and critical materials, thereby bolstering China’s dominant position in the global REE supply chain.

Analysts, such as Rajiv Biswas, believe this initiative will further solidify China’s leading role in the global rare earth market, especially for the production of magnets crucial for new electric vehicles and wind turbines.

Inner Mongolia, a northern Chinese autonomous region, has unveiled a 10-year development plan aimed at transforming its second-largest city, Baotou, into a world-leading hub for rare earth elements (REEs) and critical materials. The ambitious strategy, issued on Wednesday and extending through 2035, seeks to bolster China’s dominant position in the global REE supply chain by boosting mining, refining, and magnet production, particularly for the burgeoning new-energy industry.

Strategic Development Goals

The plan outlines comprehensive progress in the protection and integrated use of critical minerals, including a new round of strategic mine-exploration work. It also emphasizes accelerating the development of high-end rare earth functional materials. The region intends to optimize the application structure and spatial layouts for critical minerals, while simultaneously enhancing the efficiency of resource utilization.

Global Significance of Inner Mongolia

Inner Mongolia is a critical region for global rare earth supply, housing the Bayan Obo mine, which accounts for more than 40 percent of the world’s known rare earth element reserves. According to NS Energy Business, this mine alone is responsible for nearly half of the global rare earth production.

Strengthening China’s Market Position

Analysts suggest this initiative will further solidify China’s leading role in the global REE market. Rajiv Biswas, CEO of Asia-Pacific Economics, stated that the strategic development of Baotou into an integrated rare earths supply-chain hub will strengthen China’s position as the world’s primary REE producer.

Biswas further noted that large-scale new investment in magnets utilizing REE materials in Baotou is expected to reinforce China’s global leadership. This leadership is particularly crucial for the production of magnets essential for new electric vehicles and wind turbines, key components in the renewable energy sector.

Outlook on Global Supply Chains

This strategic push by Inner Mongolia underscores China’s long-term commitment to controlling and advancing its rare earth industry. The initiative has significant implications for global supply chains and the transition to new-energy technologies, as other nations and firms also race to diversify their sources.