On June 18, 2026, a significant industrial development was announced in Yili Xinyuan following the signing of a tripartite investment framework agreement. The project involves the Xinyuan County Industrial Park Management Committee, Inner Mongolia Zhongtian Hongyuan Rare Earth New Materials Co., Ltd., and Xinyuan County Xinjiang Trade and Logistics Co., Ltd. Together, they have launched a comprehensive 220 million yuan rare earth special alloy wear-resistant material full-industry chain integrated project. This initiative marks the establishment of a new manufacturing hub designed to transform the regional economy through advanced materials science and high-value-added industrial applications.
The project is structured into two phases, with construction commencing in July 2026 and reaching full production capacity by December 2028. Once operational, it aims to construct an intelligent production facility featuring 39,000 square meters of workshops capable of producing 100,000 tons of rare earth manganese special alloy wear-resistant castings annually. Upon completion in late 2026, this base will become the first high-capacity intelligent production site in Northwest China with an annual output of 100,000 tons (noting a discrepancy between the introductory "10,000" and detailed "100,000" figures, with the latter representing the total planned capacity). Economically, the project is projected to generate over 500 million yuan in annual revenue and contribute more than 10 million yuan in tax payments, while also stimulating growth in raw material supply, logistics, and supporting sectors.

Inner Mongolia Zhongtian Hongyuan, a "Little Giant" enterprise based in Baotou's Rare Earth High-tech Zone, leads this venture as the primary investor. The company specializes in precision control technology for rare earth lanthanum and cerium, utilizing these abundant elements to dramatically enhance the toughness and wear life of industrial components. By precisely adjusting grain boundary structures, their alloys achieve over 50% improvements in wear resistance compared to traditional high-manganese or high-chromium cast irons, addressing critical issues like downtime and material loss in heavy industries such as mining, metallurgy, and power generation. This technology represents a strategic shift from simple consumable replacement to a superior "material upgrade," offering lower lifecycle costs despite higher initial performance requirements.
Beyond the technical innovation, the project holds significant geopolitical and environmental importance. While Northwest and Central Asia possess strong demand for infrastructure and mining, they have historically lacked access to high-end wear-resistant materials, relying on imports from eastern China. This new facility bridges that gap with a "high-end + intelligent + green" manufacturing model. It incorporates green electricity coupled with energy storage systems, utilizes short-process smelting technologies, and maintains a wastewater reuse rate exceeding 95%, achieving over 30% energy savings compared to traditional casting methods. With an 80% renewable energy consumption target, the project aligns perfectly with global low-carbon goals while solidifying China's rare earth advantages in frontier regions.