The seventh China Baotou Rare Earth Industry Forum has contracted 22 projects worth 3.06 billion yuan ($492.97 million) at the forum’s signing ceremony held on August 8 in Baotou, Inner Mongolia autonomous region.

According to the forum’s organizing committee, the projects involve new materials and technologies in rare earth’s five major industrial chains, such as alternative energy auto, LED lighting and rare earth catalysts.

Currently, China supplies 90 percent of the world’s rare earth resources, half of which come from Northern China. Baotou in Northern China is becoming China’s leading supplier of rare earth materials, and a national base of deep processing and R D in the field of rare earth.

There are now 95 companies dealing in rare earth in Baotou, with a gross value of 15 billion yuan. The figure grew nine percent from last year.

Baotou was approved as a pilot city for the national rare earth industry’s transformation and upgrade by the Ministry of Industry and Information Technology and the Ministry of Finance. The central finances will provide nearly 1 billion yuan for the city’s rare earth industry, and the city will invest a further 14.5 billion yuan and enact preferential policies, said An Sihu, an official of Baotou Rare Earth Hi-Te Zone at the forum.

An proposed the idea of “Rare Earth Plus”, according to which Baotou will develop rare earth plus traditional and emerging industries. An added that only through such integration could the industry have a health development.