On August 8, 2012 China launched a new trading platform for a physical trading for rare earth metals as a part of its efforts to regulate the sector and strengthen its pricing power for the resources. The rare earth trading platform is located in the city of Baotou in North China’s Inner Mongolia region.

The region has half of the world’s light rare earth output. China’s top rare earth producer Inner Mongolia Baotou Steel Rare Earth Group Hi-Tech Co launched the platform along with nine other firms and institutions with a total investment of 100 million yuan. Each shareholder invested 10 million yuan and holds a ten percent stake in exchange.