China’s NdFeB Output Capacity Set for Strong Growth on Rising Demand

China NdFeB

Surge in Humanoid Robot and NEV Markets Fuels Expansion

China’s rare earth producers are ramping up NdFeB magnet output capacity as demand from humanoid robots and new energy vehicles (NEVs) accelerates. Each humanoid robot requires over 40 servo motors, translating to 2–4kg of NdFeB magnets. Global humanoid robot production could rise from under 100,000 units in 2026 to 890,000 by 2030, pushing magnet demand from below 35t to 3,200t.

NEVs are another major driver. China produced 4.43mn NEVs in January–April 2025, up 48pc year-on-year. Global demand for rare earth magnetic materials from NEVs is forecast to surpass 60,000t in 2025, with China’s share expected to exceed 70pc, supported by policy incentives.

Major Investments from Northern Rare Earth and Partners

Robust demand has prompted large-scale investments. Inner Mongolia NRE Magnetic Materials, part of Northern Rare Earth (NRE), is building the country’s largest single NdFeB plant, with 50,000 t/yr alloy capacity and 10,000 t/yr hydrogen crushing capacity. NRE has also launched joint ventures — including Northern Zhaobao Magnet and Advanced Northern Technology — to add more than 8,000 t/yr of NdFeB magnet production.

NRE’s Baotou Huamei facility, which began operations in October 2024, now stands as the world’s largest rare earth feedstock production base, with 106,661 t/yr REO extraction capacity. A second phase will start in late 2025. Additional expansions include recycling capacity upgrades at Baogang Xinli Rare Earth and Baotou Jinmeng Rare Earth, strengthening NRE’s full-cycle rare earth supply chain.

The Metalnomist Commentary

China’s dominance in the NdFeB magnet market is being reinforced through massive capacity expansions and integrated recycling systems. With humanoid robotics and NEVs providing long-term demand momentum, producers like NRE are securing their leadership. However, the global supply chain will need to monitor potential overcapacity risks if technological adoption rates slow.