Abstract: In China, attapulgite clay was discovered in 1976. After 50 years of development, an industrial chain has been established covering mining, basic processing, nanonization, deep processing, and the production of a series of functional materials, which has promoted the high−value utilization of attapulgite clay resources. Driven by government initiatives, the technological system encompassing attapulgite mineral materials, nanomaterials, and functional materials has been integrated. Platforms for talent aggregation, research and innovation, testing services, and standard setting have been built, giving rise to the unique “Xuyi Model” that boosts industrial development. The development of China's attapulgite industry is attributed to the establishment of an innovation system featuring enterprises as the mainstay, market orientation, and the integration of government, industry, academia, research, and application, shifting the industry's growth from “resource−driven” to “innovation−driven”. Taking Xuyi county in Jiangsu Province as an example, this paper reviews the 50−year development journey of China's attapulgite industry, summarizes key milestones in its development, and looks ahead to future priorities and challenges to be addressed in light of emerging scenarios and major demands, aiming to provide useful references for the efficient utilization of attapulgite clay resources and the high−quality development of the industry.