China’s Huahong Surges After Unit Inks Deal to Supply Apple With Recycled Rare Earth Oxides
Tang Shihua
DATE:  Jan 12 2022
/ SOURCE:  Yicai
China’s Huahong Surges After Unit Inks Deal to Supply Apple With Recycled Rare Earth Oxides China’s Huahong Surges After Unit Inks Deal to Supply Apple With Recycled Rare Earth Oxides

(Yicai Global) Jan. 12 -- Shares of Huahong Technology Stock surged after the Chinese maker of renewable resources equipment said a unit had signed a 12-month deal to supply recycled rare earth oxides to US tech giant Apple.

Huahong [SHE: 002645] closed up 9.3 percent at CNY25.39 (USD3.99) today. The stock gained 171 percent last year.

Ji’an Xintai Technology, the unit, will supply Apple with 50 tons of praseodymium oxide and neodymium oxide each month made exclusively from recycled materials, Huahong said in a statement yesterday. The agreement, signed with Apple agent Ganzhou Keli Rare Earth New Material, runs through this year.

Jiangsu province-based Xintai did not disclose the value of the deal, but did say that prices will be determined according to market prices for the products. Praseodymium oxide and neodymium oxide cost about CNY900,000 (USD141,400) a ton, according to commodities data platform 100ppi. Based on that, the deal could be worth about CNY540 million (USD84.8 million).

Xintai has cooperated with Apple since October 2019, but only recently passed the California-based company’s checks for product performance, environmental protection, safety, and social responsibility, Huahong added.

Xintai has an annual capacity of 4,000 tons of rare earth oxides and 2,800 tons of rare earth permanent magnet materials, accounting for 17.5 percent of the re-refined recycled rare earth products market, according to its website.

Editor: Futura Costaglione

Follow Yicai Global on
Keywords:   Supply Deal,Designated Supplier,Praseodymium Oxide,Neodymium Oxide,Recycle Rare Earth Produc,Apple,Jiangsu Huahong