To extend its value chain, the company is launching a complex in Qingyuan in the second half of this year for recycling waste containing rare and precious metals.

New materials are one of the 10 industrial sectors in the national plan called "Made in China 2025," which was unveiled by the State Council last month.

The plan seeks to promote manufacturing, with greater governmental support.

The use of rare metals started to take off globally in the 1980s, driven by the electronics and information technology sectors, said Chen Shaochun, vice-chairman of the Rare Metals Metallurgy Committee of the Nonferrous Metals Society of China.

Demand has been growing steadily, with, for example, at least two products made from rare metals used in a single mobile phone, including the chip and the screen, and tight supplies for the solar cell industry.

China produces more than 60 percent of the basic gallium, indium, germanium, selenium and tellurium materials in the world, with some deeply processed, high value-added products having made their way into the market, he said.

Deep processing of rare metals is encouraged by the government to develop the nonferrous metal sector.

The fact that the National Minor Metals Engineering Research Center was set up by Vital Materials indicates a close link-up of the research and business sectors, which should facilitate the development of commercial products.

Although many smelting plants are also engaged in this business, companies like Vital Materials determine the direction of the sector, featuring a higher concentration of product types, deeper processing and higher added value.

The company runs a head office, a marketing office, a low-melt alloy plant and an infrared materials plant in the United States, a subsidiary in Brazil, and representative offices in countries and region such as Belgium, Britain, Japan, the Philippines and Taiwan.

Ren Yue contributed to this story.