JLM to Boost Neodymium Magnet Production Capacity Amid Growing Market Demand

Jinli Magnet (JLM)

Expanding Facilities to Meet Advanced Technology Needs

Jinli Magnet (JLM), a leading magnet manufacturer in China, has announced a significant investment of 1.05 billion yuan ($144.19 million) to expand its production capacity of high-performance neodymium-iron-boron (NdFeB) magnets. The expansion at its Baotou facility aims to add 20,000 tons per year to its current capacity, with construction expected to take two years. This move is set to increase JLM's total output capacity to 60,000 tons per year by 2025, aligning with the growing demands from sectors like new energy vehicles (NEVs) and energy-efficient technologies.

Facing Economic Challenges While Increasing Production

Despite the planned increase in production capacity, JLM forecasts a decline in net profits for 2024, estimating a drop of 42-52% due to falling rare earth feedstock prices and intense competition in the magnet sector. However, the company remains optimistic about future demand, especially from the NEV and inverter air-conditioner markets, supported by favorable government policies and increasing market penetration.

Strategic Market Positioning in a Competitive Landscape

JLM's expansion strategy reflects its commitment to maintaining a strong position in the rapidly evolving magnet manufacturing industry. The firm is adjusting to market dynamics, such as price fluctuations in rare earth elements, which are crucial in producing high-performance NdFeB magnets. Additionally, the overall growth in China's NEV production and sales, which reached record highs in 2024, presents further opportunities for JLM to capitalize on its expanded production capabilities.

JLM Baotou magnet expansion accelerates global NdFeB supply

Magnetic Metals

JLM Baotou magnet expansion advances phase-3 construction to meet booming demand. JLM Baotou magnet expansion will add 20,000 t/yr of high-performance magnets. JLM Baotou magnet expansion lifts total Baotou capacity to 40,000 t/yr by end-2025.

Capacity and timeline

JLM is investing 1.05bn yuan to build phase-3 in Baotou. The plant targets start-up before the end of 2025. Meanwhile, current Baotou capacity stands at 20,000 t/yr across two phases. Ganzhou adds another 15,000 t/yr of permanent magnets. As a result, group capacity reaches 35,000 t/yr today. The company aims for 60,000 t/yr by 2027.

Demand drivers and export access

China’s NEV boom is stretching magnet supply across platforms. Production reached 6.97 million units in January–June. Sales climbed 40% year on year in the same period. Consequently, magnet demand from NEVs, inverters, and robotics remains strong. Policy support should sustain growth into 2025. JLM also secured permits to ship to the US, Europe, and Southeast Asia. Therefore, Baotou will anchor exports while serving domestic leaders.

The Metalnomist Commentary

Phase-3 cements Baotou as a top NdFeB hub with global reach. Watch qualification lead times, heavy-REE thrift, and yield as volumes scale. Pricing discipline will hinge on EV cadence and competing capacity ramps.

JLM Secures Rare Earth Magnet Export Permits to US

Jinli Magnet

Chinese Manufacturer Gains Approval Amid Tight Export Controls

Jinli Magnet (JLM), one of China’s major magnet producers, has obtained export permits for magnets containing medium and heavy rare earths to the US. The company applied for permits following Beijing’s April 4 implementation of export controls on certain rare earth products. While volumes were undisclosed, approvals also cover shipments to Europe and Southeast Asia.

JLM, which exports magnetic materials, components, and motor rotors, reported export revenue of 312mn yuan ($43.3mn) in Q1 2025, with the US accounting for 122mn yuan. The firm stated it will continue applying for permits in compliance with Chinese regulations, only proceeding with shipments once approvals are granted.

Impact on US Automakers and Global Supply Chains

Market participants report that US automakers GM, Ford, and Stellantis received permits for permanent magnets containing restricted rare earths, enabling them to advance electric vehicle projects worth billions of dollars. Several Chinese producers also secured permits for European and Vietnamese automotive orders.

Despite the easing, China’s magnet exports to the US will remain limited to essential manufacturing needs to safeguard strategic resources. Some permits are valid for only 3–6 months, suggesting continued supply uncertainty. April’s export controls caused a sharp drop in shipments — only 246t reached the US, the lowest since February 2020 — and tightened global supply, driving spot prices higher outside China.

The Metalnomist Commentary

JLM’s export approval underscores China’s strategic balancing act between resource security and global supply chain stability. While this move offers short-term relief to US and European automakers, the short validity of permits signals ongoing supply risks. The industry should expect continued volatility in rare earth magnet availability and pricing.

Jinli Magnet Permanent Magnets Output Rose as NEV and Robotics Demand Expanded

Jinli Magnet

Jinli Magnet permanent magnets production increased strongly in 2025 as demand from new energy vehicles, wind turbines, robots and industrial motors continued to expand. The Chinese magnet manufacturer produced 34,400t of high-performance rare earth permanent magnetic materials, up 17% from a year earlier.

Jinli Magnet permanent magnets sales also rose, with finished magnet materials product sales increasing by 21% to 25,300t. Capacity utilisation exceeded 90%, showing that downstream demand remained strong across electrification-linked industries.

Jinli Magnet permanent magnets growth highlights the rising importance of neodymium-iron-boron materials in global industrial supply chains. These magnets are critical for EV traction motors, wind turbine generators, inverter air conditioners, servo motors, robotics and energy-efficient industrial equipment.

NEVs and Industrial Motors Drove Magnet Revenue Growth

JLM’s revenue rose 14% on the year to 7.7bn yuan in 2025, while profit surged by 142% to 706mn yuan. The earnings improvement reflected higher magnet sales, stronger capacity utilisation and demand growth from higher-value applications.

The NEV and automobile components sector remained the company’s largest growth engine. Revenue from this segment rose by 30% to 3.9bn yuan, underlining the importance of rare earth magnets in electric drivetrains and automotive electrification.

The inverter air conditioner industry also contributed strongly, with revenue rising by 13% to 1.9bn yuan. This shows that energy efficiency remains a major demand driver for high-performance NdFeB magnets beyond electric vehicles.

Robotics and Wind Power Support Long-Term Rare Earth Magnet Demand

JLM is preparing for further growth by targeting 60,000 t/yr of magnetic materials production capacity by 2027. The company also plans to develop an advanced production line for embodied robot motor rotors.

This expansion reflects the next stage of magnet demand. Robotics, humanoid systems, industrial servo motors and automated equipment require compact, high-torque motor designs, creating new demand channels for high-performance rare earth magnets.

JLM currently has 40,000t of rough NdFeB magnet capacity. Its 2025 revenue also included 488mn yuan from wind turbines, 300mn yuan from robots and industrial servo motors, and 226mn yuan from computer, communication and consumer electronics applications.

Demand from wind turbines and other clean energy industries is expected to rise in 2026. Electrification, energy efficiency and automation will continue to support rare earth magnet consumption, strengthening the strategic value of NdPr, dysprosium and terbium supply chains.

The Metalnomist Commentary

JLM’s results show that rare earth magnet demand is broadening beyond EVs into robotics, industrial motors and energy efficiency. The next competitive battleground will be secure access to rare earth oxides, metal conversion capacity and high-end magnet manufacturing.

Inner Mongolia rare earth developments accelerate Baotou’s magnet and feedstock dominance

China’s Inner Mongolia Mining

Inner Mongolia rare earth developments accelerate China’s magnet and feedstock capacity in Baotou. Output capacity for rare earth new materials nears 300,000 tonnes per year. As a result, the region becomes China’s largest comprehensive production base. Producers also expand upstream supplies to match downstream investments.

Magnet manufacturing surge in Baotou

Baotou anchors magnet manufacturing scale and technology leadership. Ten of China’s top fifteen magnet plants operate in the city. Combined nameplate exceeds 159,000 tonnes per year. Actual magnet output rose 34.5% to 75,000 tonnes in 2024.

Jinli Magnet adds a third phase, lifting output to 40,000 tonnes per year. It becomes the largest single-site NdFeB producer globally. Grain boundary penetration reduces heavy rare earth consumption below industry averages. JLM supplies BYD and partners strategically with Goldwind. Wolong commissioned China’s largest permanent magnet motor plant in March 2025. It can produce NEV, low-speed high-power, and wind turbine motors. Ande Xinai started a 120,000 tonne refractory plant using 6,000 tonnes of La and Ce.

Feedstock expansion and exchange liquidity

Inner Mongolia rare earth developments also transform feedstock and market infrastructure. The Baotou Rare Earths Exchange traded 77,000 tonnes REO from January to May 2025. Turnover reached 5.8 billion yuan with 1,103 registered enterprises. Northern Rare Earth holds 44.56% and leads integrated expansion.

NRE’s Huamei plant began phase one in October 2024. It adds 106,661 t per year extraction and separation capacity. It processes 198,000 t per year mixed concentrate, or 115,018 t REO equivalent. Precipitation and crystallisation capacity totals 141,070 t per year. Burning capacity reaches 39,600 t per year. NRE starts phase two construction in the second half of 2025. This complex will become the world’s largest rare earth feedstock base.

Therefore, Inner Mongolia rare earth developments underpin magnets, motors, and catalysts growth. Downstream buyers should expect improved availability, yet watch pricing discipline.

The Metalnomist Commentary

Inner Mongolia is building a full-stack advantage from concentrate to motors. Success depends on yield, heavy-REE thrift, and environmental compliance. Watch contract terms and qualification timelines for high-performance magnets.

Global Rare Earth Magnet Production Set to Surge Amid Expanding NEV and Wind Sectors

Rare Earth Magnet

Expanding Global Demand for Rare Earth Permanent Magnets

Global rare earth permanent magnet output is poised for sustained growth as new and expanded manufacturing facilities come online worldwide. Demand from new energy vehicles (NEVs), wind turbines, and energy-efficient technologies is driving this acceleration. According to market participants, global output is projected to climb from 270,000 tonnes in 2023 to 310,000 tonnes in 2025, exceeding 330,000 tonnes by 2027.

China remains dominant, expected to control up to 89% of global magnet output by 2027, despite global diversification efforts spurred by export controls on medium and heavy rare earths.

China’s NEV production reached 8.23 million units between January and July 2025, marking a 39% increase year-on-year, while exports surged 85%. The China Association of Automobile Manufacturers (CAAM) forecasts total sales of 16 million NEVs in 2025, up from 12.9 million in 2024. Each vehicle uses 3–5 kilograms of rare earth magnets, boosting magnet demand to an estimated 87,000 tonnes by 2027. Similarly, the wind turbine sector will require 19,620 tonnes of magnets in 2025, compared with 12,880 tonnes in 2020, underscoring the link between clean energy growth and rare earth magnet consumption.

Supply Chain Expansion Beyond China

Leading magnet manufacturers are racing to expand production capacity. In China, Jinli Magnet (JLM) plans to raise its high-performance NdFeB magnet output to 60,000 t/yr by 2027, up from 35,000 t/yr today. Ningbo Yunsheng is expanding its Baotou plant to 15,000 t/yr, with phased commissioning through 2026. Zhongke Sanhuan increased its sintered NdFeB capacity to 25,000 t/yr and bonded magnets to 1,500 t/yr, serving NEV, robotics, and advanced transportation sectors.

Outside China, MP Materials aims to produce 10,000 t/yr of magnets by 2028 with U.S. Department of Defense backing, while Neo Performance Materials will begin 2,000 t/yr of sintered NdFeB magnet output in 2026. Vulcan Elements and E-VAC Magnetics are also advancing U.S. production, with the latter supporting General Motors’ EV lineup under a long-term contract. These moves reflect a broader global effort to localize magnet supply chains and mitigate reliance on China amid rising geopolitical risk.

The Metalnomist Commentary

The sharp expansion in rare earth magnet capacity reflects the industrial urgency to secure critical materials for the energy transition. While China’s dominance will persist, Western and Japanese investments signal a strategic realignment toward supply chain resilience. The balancing act between technological advancement and resource independence will define the next decade of the magnet and rare earth industries.