Northern Rare Earth NdFeB project accelerates in Baotou

Northern Rare Earth

China’s Northern Rare Earth NdFeB project is accelerating to meet surging magnet demand. The Northern Rare Earth NdFeB project will start partial operations this year in Baotou. As a result, the Northern Rare Earth NdFeB project positions NRE for record alloy output and sales in 2025.

Capacity and timeline in Baotou

NRE will launch phase-one operations by year end. The site targets 50,000 t/yr of high-performance NdFeB quick-setting alloys. It also adds 10,000 t/yr of hydrogen crushing capacity. NRE calls it China’s largest single NdFeB plant by cost effectiveness. However, the firm has not disclosed phase sizing or exact start dates.

Demand drivers and profitability outlook

Downstream robotics and EV supply chains continue to lift magnet demand. China’s industrial robot output jumped 36pc in January–June, MIIT data show. Humanoid robots may need 3.5–4kg of rare earth magnets each. NRE expects record magnet sheet output and pricing in 2025. Second-quarter magnet sheet sales could reach 19,000t on robust orders. Meanwhile, tighter Pr-Nd feedstock supports stronger margins. NRE guides first-half net profit to Yn900mn–960mn, sharply higher year on year.

Market implications for magnet metals

The project strengthens China’s midstream magnet capacity. It can tighten Pr-Nd balances if feedstock remains constrained. Therefore, alloy premiums may remain firm into 2025. Quick-setting alloy routes also shorten cycle times and improve yields. That helps OEMs stabilize supply for robotics, wind, and traction motors.

The Metalnomist Commentary

NRE’s Baotou move consolidates scale and process speed where demand is hottest. Watch Pr-Nd oxide availability and scrap revert rates; these will set marginal costs. If humanoid and industrial robotics ramp as projected, tightness could extend through 2025.