China’s Recycled Rare Earth Output Drops in 2024 on Supply and Margin Pressures

China’s Recycled Rare Earth

Rare Earth Oxide Output Falls Despite Long-Term Growth

China’s recycled rare earth oxide (REO) output declined in 2024, primarily due to limited NdFeB magnet scrap supply and weaker plant margins. Ji’an Xintai Technology’s chairman, Liu Weihua, reported that REO output from NdFeB magnet scrap totaled 34,147 tonnes, down 14% from 2023 but up 2% from 2022.

This total includes 26,504t of praseodymium-neodymium oxide, along with smaller quantities of gadolinium, terbium, dysprosium, and holmium oxides. By comparison, China produced 39,662t of REO from scrap in 2023, indicating a clear year-over-year contraction in recycled supply.

Scrap Availability and Profitability Hit Recycling Plants

Liu noted that larger magnet manufacturers are producing less NdFeB scrap due to technology upgrades. This shift, combined with traders' reluctance to sell at lower prices, has constrained the scrap supply chain.

Meanwhile, rare earth recycling plants have seen shrinking profit margins amid firm scrap prices and falling REO market prices. To cope, many rough magnet manufacturers have started in-house recycling to improve resource efficiency and profitability.

China currently operates about 40 recycling plants for NdFeB scrap, with Jiangxi province accounting for 64% of the nation’s recycled REO output. Shandong and Jiangsu followed with 15% and 11%, respectively, consolidating over 86% of China's total recycling capacity.

China Maintains Global Dominance in Rare Earth Supply

Global REO output in 2024 reached 454,000 tonnes, with China contributing roughly 90% through its mining quotas, scrap recycling, and imports. Despite this year’s dip, China's REO recycling capacity surpassed 80,000t in 2024 and is expected to hit 100,000t in 2025.

As demand for NdFeB magnets surges globally, China’s long-term recycling potential remains strong, albeit challenged by short-term headwinds.

The Metalnomist Commentary

China’s temporary dip in recycled rare earth output reflects deeper structural tensions between supply control and market sustainability. The push for high-tech efficiency is narrowing scrap availability, but rising global magnet demand ensures that China's recycling sector will remain a pillar of strategic resource security.