Xiamen Tungsten Expands NdFeB Magnet Production in Baotou

Xiamen Tungsten

First Phase Production Begins in Inner Mongolia

Chinese state-owned Xiamen Tungsten has officially started the first phase of production at its neodymium-iron-boron (NdFeB) magnet facility in Baotou, Inner Mongolia. Operated by its subsidiary Baotou Golden Dragon, the 5,000 t/yr facility required an investment of 460mn yuan ($64mn) and is projected to generate annual revenue of around Yn750mn.

The company has ambitious plans to scale output. A second phase, scheduled to be completed by the end of 2027, will add another 15,000 t/yr in capacity. Once the full 20,000 t/yr production is online, Xiamen Tungsten forecasts revenue reaching Yn4bn annually, highlighting the strong growth prospects for high-performance magnet materials.

Expanding Capacity Amid Rising Global Demand

Xiamen Tungsten already operates 12,000 t/yr of rough NdFeB magnet capacity at its Changting facility in Fujian province. The company has steadily expanded its magnet production to meet surging demand from wind turbines, consumer electronics, energy-saving motors, home appliances, and the rapidly growing electric vehicle (EV) sector.

In the first quarter of 2025, Xiamen Tungsten reported revenue of Yn8.38bn, up 1.3pc year on year, though profit fell by 8.5pc to Yn391mn. Its rare earths unit, however, performed strongly, with revenue up 46.4pc to Yn1.33bn and profit surging 65.1pc to Yn66mn. Sales of deep-processing magnetic materials climbed 49pc, driving revenue growth of 35pc in that segment.

The Metalnomist Commentary

Xiamen Tungsten’s decision to scale NdFeB magnet production underscores China’s determination to maintain dominance in the global rare earth and magnet supply chain. With demand rising sharply in EVs and renewable energy, Baotou’s expanded capacity will reinforce China’s strategic position. However, reliance on domestic expansion also highlights growing risks of overcapacity and pricing pressure in the magnet sector.