China NdFeB Magnet Output Rose in 2025 on Strong Downstream Demand

Earth Panda

China NdFeB magnet output increased in 2025 as demand strengthened from new energy vehicles, energy-saving appliances, industrial robots, consumer electronics and wind turbines. The rise confirmed the growing industrial importance of rare earth permanent magnets across electrification and automation supply chains.

China NdFeB magnet output was supported by higher production at major domestic magnet producers. Anhui Earth Panda produced 4,127t of sintered NdFeB magnets, up 24.8% from 2024, while sales rose 24.16% to 4,014t.

China NdFeB magnet output also increased among bonded and soft magnet producers. Galaxy Magnets lifted bonded NdFeB output by 4.98% to 3,606t, while Sinomag raised wet-pressed magnet tile output by 9.34% to 44,992t.

NEVs, Appliances and Robots Supported Magnet Consumption

New energy vehicles remained one of the strongest demand engines for rare earth permanent magnets. China’s NEV sales rose 28% to 16.49mn units in 2025, supported by continued adoption and policy incentives linked to decarbonisation goals.

The NEV sector uses high-performance NdFeB magnets in traction motors, power steering systems and other electrified vehicle components. China’s NEV sales are expected to reach 19mn units in 2026, although growth is likely to slow from the previous year.

Energy-saving appliances also supported magnet demand. China sold 267mn air conditioners in 2025, up 0.7%, with inverter air conditioner sales reaching about 187mn units.

Industrial robots added another growth channel. China’s industrial robot output rose 28% to 773,074 units in 2025, reinforcing demand for compact, efficient motors using rare earth magnet materials.

Wind Turbines Add Long-Term Demand for High-Performance Magnets

Wind power continued to expand the strategic role of rare earth permanent magnets. China’s cumulative wind turbine capacity reached around 640GW by the end of 2025, up 23% from a year earlier.

Offshore wind remains especially important because direct-drive permanent magnet technology is widely used in that market. China’s offshore wind capacity reached about 47GW, with 6.59GW newly installed during 2025.

Global wind additions were also strong. Newly installed wind turbine capacity was estimated at 150GW in 2025, compared with 120GW in 2024 and 121GW in 2023.

The growth outlook points to stronger demand for neodymium, praseodymium, dysprosium and terbium. However, rising inventories at some Chinese magnet producers show that supply growth must be balanced carefully against end-market absorption.

The Metalnomist Commentary

China’s magnet sector is benefiting from the convergence of EVs, robotics, appliances and wind power. The next strategic issue is whether rare earth oxide, metal conversion and high-end magnet capacity can keep pace without creating another inventory cycle.