Peak Rare Earths, the operator of the Ngualla rare earths project in Tanzania, has rejected a A$240 million (about US$160 million) bid from General Innovation Capital Partners (GICP), a U.S. asset manager.
The proposal to acquire a 100% stake in the Australian company was not considered “superior” to an existing offer from China’s Shenghe Resources, according to a company note. Shenghe, which already owns 19.7% of Peak Rare Earths, is seeking to acquire the remaining shares in a deal valued at A$195 million. While that process is still under review, GICP submitted an unsolicited letter of intent to Peak Rare Earths on 14th September 2025.
The independent committee tasked by the Peak Rare Earths Board of Directors to review the offer did not give its approval. The company’s statement cited a lack of information in GICP’s proposal and Shenghe’s refusal to support the transaction, exercising its rights as a major shareholder.
This development marks the latest in a geopolitical struggle between Washington and Beijing to secure rare earth supply chains. By rejecting GICP, Shenghe is in a stronger position to consolidate its bid for Peak Rare Earths and maintain control of the Ngualla project, which is expected to eventually produce 37,200 metric tons of concentrate annually for more than 20 years.
A potential new source of supply could reinforce China’s dominant position in the global rare earths market, where it already controls 60% of production and 90% of refining capacity. For its part, the United States is pursuing initiatives to reduce its dependence on China, as demonstrated by GICP’s move in Tanzania. This strategy is also visible in supply agreements, such as the one signed between U.S. company ReElement Technologies and Pensana for rare earths from the future Longonjo mine in Angola.
The U.S.-China rivalry extends beyond rare earths to other critical metals like nickel and lithium. For example, the U.S. company Lifezone Metals is developing the Kabanga project in Tanzania, which is set to produce nickel, copper, and cobalt. In the same country, China’s Zhongzhou Mining recently began construction on a nickel refining plant. In the Democratic Republic of Congo, KoBold Metals acquired its first lithium exploration permits in Manono, a province where Zijin Mining is already building a mine aiming to produce the metal by early 2026.
