Ningbo Yunsheng NdFeB Magnet Output Rises on NEV and AI Terminal Demand

Ningbo Yunsheng

Ningbo Yunsheng NdFeB magnet output increased in 2025 as demand from new energy vehicles, consumer electronics, industrial motors and robots supported China’s rare earth permanent magnet sector. The company produced 14,856t of finished neodymium-iron-boron magnets during the year, up 11% from 2024.

Ningbo Yunsheng NdFeB magnet output growth was matched by stronger sales. The company sold 14,197t of finished NdFeB magnets in 2025, up 10% from a year earlier, while inventories rose by 47% to 2,055t.

The inventory increase shows that supply growth remains strong even as downstream demand improves. For China’s magnet industry, the key question is whether expanding production capacity can stay aligned with demand from EVs, AI devices, robots and high-efficiency motors.

NEVs and Consumer Electronics Strengthen Magnet Revenue

Yunsheng’s revenue rose by 6% on the year to 5.46bn yuan, while profit increased sharply to 330.82mn yuan from 95mn yuan in 2024. The improvement reflected stronger demand in its core downstream sectors and higher-value magnetic component sales.

Revenue from NdFeB permanent magnetic materials sold as magnetic components rose by 60% to 705mn yuan. This suggests that Yunsheng is gaining value not only from magnet volume, but also from more advanced component-level products.

The NEV sector remained the company’s largest growth driver. Yunsheng’s sales revenue from new energy vehicle applications rose by 9.6% to 2.55bn yuan in 2025.

China sold 12.8mn NEV passenger cars in 2025, up 18% from a year earlier. NEVs accounted for 54% of total domestic passenger car sales, reinforcing the role of electric drivetrains in magnet demand.

NdFeB magnets are critical for high-efficiency motors used in electric vehicles, power steering systems, industrial automation and robotics. As vehicle electrification deepens, magnet suppliers remain closely tied to demand for neodymium, praseodymium, dysprosium and terbium.

Consumer electronics also supported Yunsheng’s performance. Revenue from the sector rose by 0.8% to 1.3bn yuan, helped by rapid growth in AI terminal product shipments and continued development of generative AI technologies.

Baotou Expansion Adds High-Performance Magnet Capacity

Ningbo Yunsheng NdFeB magnet output is set to receive further support from capacity expansion. The company had 26,000 t/yr of rough NdFeB magnet capacity and 10,000 t/yr of grain boundary diffusion capacity by the end of 2025.

Grain boundary diffusion is strategically important because it improves magnet performance while helping manage the use of heavy rare earths. This matters for high-performance applications where heat resistance, magnetic stability and material efficiency are critical.

Yunsheng is expanding its Baotou site to 15,000 t/yr of high-performance permanent magnetic materials by June 2026. The first 5,000 t/yr phase has been operating since June 2025, and the second 10,000 t/yr phase is expected to come on line in 2026.

Baotou is a strategically important location because it sits close to China’s rare earth resource and processing base. This gives magnet producers logistical and supply-chain advantages in sourcing rare earth materials and scaling downstream manufacturing.

The expansion also highlights China’s continued dominance in the rare earth magnet value chain. As global demand rises from EVs, AI hardware, robotics, industrial motors and clean-energy systems, Chinese producers are still adding capacity faster than most overseas competitors.

The Metalnomist Commentary

Yunsheng’s results show that rare earth magnet demand is broadening from EVs into AI terminals, robotics and high-efficiency motors. The next strategic risk is not only demand growth, but whether rising Chinese magnet capacity creates inventory pressure while tightening demand for high-quality rare earth feedstock.

NdFeB magnet recycling feedstock expands as HyProMag adds EV and wind rotors

NdFeB magnet recycling

NdFeB magnet recycling feedstock is widening beyond small electronics as HyProMag USA expands its supply pipeline. The company will now include rotors from electric motors, wind turbines, and other equipment in its feedstock agreement. Therefore, NdFeB magnet recycling feedstock could scale faster as larger, bulk streams enter the collection system.

NdFeB magnet recycling feedstock growth follows HyProMag’s July partnership with Intelligent Lifecycle Solutions, also known as ILS. The updated scope adds electric motors, wind turbine magnets, speaker assemblies, and MRI machines alongside hard disk drives. Meanwhile, the broader mix can improve resilience when any single scrap category tightens.

New collection streams target bulky magnets from electrification assets

NdFeB magnet recycling feedstock now includes rotor-based material that typically carries higher magnet mass per unit. This change matters because EV drivetrains and wind turbines hold concentrated rare earth magnet content. As a result, the expanded intake can support higher throughput and more predictable procurement.

ILS will continue to secure and store NdFeB material from HDDs at pre-processing sites in Williston, South Carolina and Reno, Nevada. The network can consolidate, sort, and stage material before downstream processing. However, bulk rotor streams may require different dismantling and demagnetisation steps than HDD-derived magnets.

Fort Worth commissioning links feedstock to scalable output capacity

NdFeB magnet recycling feedstock expansion supports HyProMag’s push toward commissioning a plant in Fort Worth, Texas. The partners will form a joint team to accelerate purchases as the facility advances. Therefore, procurement speed becomes a near-term competitive lever as more recyclers chase the same magnet-rich scrap.

The Texas plant is designed for 750 tonnes per year of recycled sintered NdFeB magnets and 807 tonnes per year of NdFeB co-products. The long operating-life plan signals an industrial-scale strategy rather than a short pilot cycle. Meanwhile, downstream users will watch qualification, purity, and consistency as the product slate develops.

The Metalnomist Commentary

NdFeB magnet recycling feedstock from motors and wind assets can unlock bigger volumes than HDD-centric sourcing. However, collection logistics and contamination control will decide real yields. Therefore, HyProMag’s joint procurement model with ILS looks strategically timed.

Cerium NdFeB Magnet Project Strengthens Northern Rare Earth’s Downstream Strategy

Northern Rare Earth

Cerium NdFeB magnet project development is becoming a stronger part of China’s rare earth industrial strategy as Northern Rare Earth moves further into cost-optimized permanent magnet materials. The company plans to build a 10,000 t/yr plant in Baotou, Inner Mongolia, through a new joint venture with Ningbo Shuoteng.

The project will produce neodymium-iron-boron magnets containing cerium, linking Northern Rare Earth’s light rare earth resource base with downstream magnet manufacturing. The structure also gives the company a clearer route to absorb cerium supply into higher-value functional materials.

Northern Rare Earth will invest 116mn yuan to form Northern Shuoteng Magnetics with Ningbo Shuoteng, a producer of cerium-iron-boron magnets. The joint venture will require total investment of Yn595mn, with Northern Rare Earth holding 34pc and Ningbo Shuoteng holding the remaining stake.

The cerium NdFeB magnet project will be built in two phases. Each phase will add 5,000 t/yr of capacity. The first phase will require Yn440mn and a 20-month construction period, while the second phase will require around Yn155mn and a similar construction timeline.

Cerium Magnet Demand Supports Light Rare Earth Consumption

Cerium-based magnet production is gaining importance because it can reduce material costs in selected applications. CeFeB magnets are already used in lower-priced electric vehicles, household appliances, two-wheelers, and lower-end motors where cost competitiveness matters more than maximum magnetic performance.

The new cerium NdFeB magnet project shows how China is trying to create more industrial demand for abundant light rare earth elements. Cerium and lanthanum often face weaker pricing dynamics than neodymium and praseodymium because supply growth can exceed high-value demand. Magnet substitution gives producers another channel to improve consumption balance.

Northern Rare Earth said China’s CeFeB magnet output is expected to continue rising in the next few years. The company estimated that China’s CeFeB output reached more than 100,000 t in 2025, showing rapid expansion in cost-sensitive magnet applications.

This trend matters for the broader rare earth supply chain. If cerium-containing magnets continue to gain share in lower-cost motors, they could reduce pressure on more expensive rare earth inputs in certain segments. However, high-performance EV traction motors, wind turbines, aerospace systems, and defense applications will still require stronger magnet chemistries.

Cerium Prices Rise as Destocking Improves Market Balance

Higher CeFeB output has already supported stronger consumption of cerium products in China. Northern Rare Earth said increased use of cerium metal in magnet manufacturing helped lift domestic spot prices for cerium oxide.

Cerium oxide prices have been rising since September 2025. Prices for 99.5-99.9pc cerium oxide were assessed at Yn13,500-14,500/t ex-works, up 28pc at the midpoint from Yn10,500-11,500/t ex-works on 23 September 2024.

The price increase reflects a more constructive market for light rare earth products. Northern Rare Earth said its destocking of lanthanum and cerium products made notable progress in 2025, with sales exceeding production for the first time. Stronger restocking demand inside and outside China also supported the improvement.

The company expects 2025 profits to rise sharply to Yn2.18bn-2.36bn, compared with Yn1bn a year earlier. Higher sales and production of rare earth oxides, metals, functional materials, and permanent magnet motors supported the earnings outlook. Firmer rare earth prices and improved inventory discipline also helped profitability.

The cerium NdFeB magnet project therefore carries both operational and market significance. It is not only a downstream expansion, but also a mechanism for improving the value chain position of cerium. For Northern Rare Earth, this creates a more integrated model from oxide and metal production to functional magnet materials.

The Metalnomist Commentary

Cerium magnet growth shows China’s ability to turn oversupplied light rare earths into usable industrial demand. The key strategic point is not only lower magnet cost, but better control over the full rare earth value chain.

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.

US NdFeB magnet stockpile tender targets 1,100 tonnes over five years

NdFeB

The US NdFeB magnet stockpile tender signals a sharper push to secure permanent magnets for defense needs. Defense Logistics Agency (DLA) has issued a tender for more than 1,100 tonnes of sintered NdFeB magnet blocks. Meanwhile, the program spreads purchases over five years to build a reliable domestic supply base in the United States.

Contract scope, grades, and pricing mechanics

The tender sets three IDIQ awards to cover four grades of NdFeB magnet block. It guarantees at least $3mn in value and caps ordering at $200mn across the contracts. Therefore, suppliers can scale output while the government limits its budget exposure.

The first delivery order uses a firm-fixed price, which reduces early pricing uncertainty. Later orders will compete among awardees, which keeps pricing pressure on performance. United States Department of Defense will evaluate best value using capability, approach, past performance, and price.

What it means for rare earth magnet supply chains

Domestic production sits at the center of the US NdFeB magnet stockpile tender. The agency wants vendors that can manufacture in the US or designated outlying areas. As a result, qualifying magnet makers may accelerate investments in sintering, machining, and quality systems.

Sintered NdFeB magnets power guidance, motors, and sensors, so demand can surge during procurement cycles. However, suppliers must also secure rare earth inputs like neodymium and dysprosium with tighter traceability. Therefore, the tender could strengthen upstream partnerships and shorten lead times for defense-grade permanent magnets.

The Metalnomist Commentary

This tender reinforces the trend toward strategic stockpiling of critical components, not only raw materials. Meanwhile, the contract structure rewards scalable capacity and disciplined pricing in a volatile rare earth market. If domestic vendors execute well, the US NdFeB magnet stockpile tender can become a model for allies.

Golden Dragon Magnet Output Expansion Strengthens Baotou NdFeB Capacity

Golden Dragon, Rare Earths

Golden Dragon magnet output is set to expand as the Chinese rare earths and magnet producer prepares trial production at the second phase of its Baotou plant in Inner Mongolia. The new phase is scheduled to start trial operations in December.

Golden Dragon magnet output at the second phase will add 5,000 t/yr of high-performance neodymium-iron-boron magnetic materials. The first phase began trial operations in September 2025 and is already running at full capacity of 5,000 t/yr.

Golden Dragon magnet output growth will lift the company’s Baotou high-performance NdFeB magnet capacity to 10,000 t/yr once the second phase is operating. The expansion reinforces Baotou’s role as a key rare earth magnet manufacturing hub in northern China.

The company also operates 15,000 t/yr of rough NdFeB magnet production capacity at its Changting facility in Longyan, Fujian province.

Baotou Expansion Adds High-Performance Magnet Capacity

The Baotou expansion strengthens Golden Dragon’s position in high-performance NdFeB magnets. These materials are critical for electric vehicles, wind turbines, energy-saving motors, robotics, consumer electronics and advanced industrial equipment.

High-performance NdFeB magnets require stable access to rare earth feedstocks such as neodymium and praseodymium. In higher-temperature applications, dysprosium and terbium can also be important to improve magnetic performance and durability.

Golden Dragon’s expansion is therefore not only a capacity addition. It reflects China’s effort to maintain scale and technical leadership in downstream rare earth applications.

The second phase also improves Golden Dragon’s ability to serve customers that require more consistent magnet quality and larger supply volumes. This is particularly important in sectors such as EV motors and wind power, where qualification and long-term supply reliability matter.

As a wholly owned subsidiary of Xiamen Tungsten, Golden Dragon benefits from its parent company’s broader rare earth and metals platform. That connection supports feedstock access, downstream integration and customer development.

EVs, Wind Turbines and Electronics Support Demand

Golden Dragon has been expanding magnet production in response to rapid growth across key application sectors. Demand continues to rise from wind turbines, consumer electronics, energy-saving motors, home appliances and new energy vehicles.

The demand outlook is especially important for high-performance NdFeB magnets. EV traction motors and direct-drive wind turbines require powerful, compact and efficient magnetic materials.

Energy-saving motors and smart appliances are also increasing magnet consumption. As efficiency standards rise, manufacturers need stronger magnetic materials to improve performance and reduce energy use.

Xiamen Tungsten’s 2025 results show the strength of this broader materials platform. The company’s revenue rose by 30.79% on the year to 46.26bn yuan, while profit increased by 34.89% to 2.3bn yuan.

Revenue from Xiamen Tungsten’s rare earths sector rose by 10% to 6bn yuan in 2025. This reflects continued demand for rare earth materials and magnet-related products despite growing competition in the sector.

For China’s rare earth value chain, Golden Dragon’s Baotou expansion reinforces a strategic advantage. China remains dominant not only in rare earth separation, but also in downstream magnet manufacturing, where industrial scale and customer qualification are difficult to replicate quickly.

The Metalnomist Commentary

Golden Dragon’s Baotou expansion shows that China is still building strength at the most valuable end of the rare earth chain. The strategic issue for global buyers is not only rare earth supply, but access to qualified magnet capacity at industrial scale.

Huahong Rare Earth Output Rises as NdFeB Scrap Recycling Supports Magnet Demand

Huahong Rare Earth

Huahong rare earth output increased sharply in 2025 as stronger demand from new energy vehicles, industrial automation and energy-saving motors lifted China’s rare earth recycling and magnet supply chain. Zhejiang Huahong Technology produced 8,794t of rare earth oxides during the year, up 71% from 2024.

Huahong rare earth output growth was also supported by tighter rare earth supply conditions in China. Stricter government controls on mining, processing and production capacity helped lift prices and encouraged stronger output from qualified oxide and magnet producers.

Huahong rare earth output is strategically important because the company recovers rare earth oxides from neodymium-iron-boron scrap. This recycling route gives China another feedstock source for magnet production at a time when primary supply, mining quotas and scrap availability remain sensitive.

Sales of rare earth oxides rose by 57% to 9,165t in 2025, while inventories increased by 7% to 359t. The figures show that downstream demand remained strong enough to absorb most of the company’s higher oxide output.

NdFeB Scrap Recycling Gains Value Under Tighter Rare Earth Supply

Huahong operates three production bases for NdFeB scrap recycling: Ji’an Xintai, Jishui Jincheng and Jiangxi Wanhong. Together, these sites have 12,000 t/yr of rare earth oxide capacity using neodymium-iron-boron scrap as feedstock.

This recycling capacity matters because magnet scrap is becoming a strategic rare earth resource. NdFeB magnets contain neodymium, praseodymium and, in higher-performance grades, heavy rare earths such as dysprosium and terbium.

Recovering these materials from scrap can reduce dependence on mined feedstock and improve supply efficiency. It also supports China’s circular rare earth strategy, especially as demand from electric vehicles, robotics and industrial motors rises.

Market participants said some oxide plants are facing shutdowns or output restrictions because their capacity exceeds government standards. Tighter mining quotas, limited spot availability and higher NdFeB scrap costs have also created pressure in the oxide market.

These conditions favour producers with approved capacity and secure scrap channels. Huahong’s stronger oxide output suggests that recycled feedstock is becoming more important in balancing China’s rare earth supply chain.

The company’s revenue rose by 41% to 7.83bn yuan in 2025, while profit increased by 157% to 204mn yuan. The profit growth shows how higher rare earth prices and stronger magnet demand improved margins across the business.

High-Performance Magnet Demand Drives Capacity Expansion

Huahong’s rare earth magnetic materials output rose by 27% to 15,791t in 2025. Sales increased by 19% to 14,035t, while inventories rose by 29% to 1,042t.

The growth reflects rising demand for high-performance magnets in new energy vehicles, industrial robots, automation systems and energy-saving motors. These sectors require magnets with stronger magnetic performance, thermal stability and reliability.

China produced 16.6mn new energy vehicles in 2025, up 29% from a year earlier. NEV sales rose by 28% to 16.5mn units, supporting demand for high-performance NdFeB magnets used in traction motors, pumps, sensors, braking systems and other vehicle components.

Huahong said high-performance NdFeB magnetic materials accounted for around 42% of China’s total magnet output last year. That share is likely to remain important as vehicles become more electrified, automated and motor-intensive.

Industrial robots also supported magnet demand. Global industrial robot output exceeded 600,000 units in 2025, with compound annual growth above 10%. Robotics growth increases demand for compact, efficient and high-torque motor systems.

Huahong plans to start trial operations at the first phase of its Baotou facility in May-June 2026. The first phase will add 10,000 t/yr of high-performance magnet capacity.

Once the first phase comes on line, Huahong’s total high-performance magnet capacity will reach 20,000 t/yr. This positions the company more deeply in the downstream magnet chain, not only in rare earth oxide recycling.

The expansion shows how China’s rare earth industry is moving toward integrated recycling, oxide production and magnet manufacturing. Companies with access to scrap feedstock and downstream magnet capacity may be better positioned as rare earth supply becomes more regulated.

The Metalnomist Commentary

Huahong’s growth shows that rare earth recycling is no longer a secondary supply story. As NEV and robotics demand rises, NdFeB scrap recovery is becoming a strategic feedstock route for China’s high-performance magnet industry.

Increased Supplies and Weak Demand Pressure Chinese Rare Earths

As global supplies continue to rise and demand from downstream industries slows, market participants anticipate short-term downward pressure on Chinese rare earth markets. Consecutive output increases, driven by higher ore feedstock supplies from China’s mining quotas and imports from major supplier countries, coupled with reduced capacity utilization in the magnet industry, have resulted in elevated inventories across many rare earth companies. This has prompted suppliers to destock materials at comparatively lower prices. Pessimism regarding short-term demand outlooks is growing, particularly in light of the global economic downturn.

China's rare earth output has steadily increased over recent years, supported by higher mining quotas and ore feedstock imports. Metalnomist projects that China’s total quotas for rare earth mining products in 2024 will rise by 10-15% compared to the previous year, reaching 280,000-290,000 tons. The production of praseodymium-neodymium oxide from these quotas is expected to reach approximately 44,500-45,500 tons this year, up from around 40,000 tons in 2023.

Imports of ore feedstock from Southeast Asian countries, including Myanmar (Burma), Laos, and Malaysia, are projected to increase by 3-5% in 2024, reaching around 60,000 tons of rare earth oxide (REO), as rising shipments from Laos outweigh declines from Myanmar and Malaysia. Conversely, China’s rare earth metal ore imports from the US are likely to decrease by over 30% from the previous year, falling below 28,000 tons of REO, due to increased domestic consumption in the US. US-based rare earth producer MP Materials more than doubled its praseodymium-neodymium oxide production during April-June and expects a further 50% increase in the third quarter, further reducing its exports to China.

Metalnomist forecasts China’s production of praseodymium-neodymium oxide using ore feedstock imports from Southeast Asia and the US to reach around 20,000-21,000 tons in 2024. Overall, China’s praseodymium-neodymium oxide output is expected to rise to approximately 92,000-95,000 tons this year, representing a 10% increase from 2023.

China's total production of dysprosium oxide in 2024 is expected to increase to around 3,600-3,700 tons, including approximately 400 tons from domestic mining quotas, 2,000 tons from ore feedstock imports, and around 1,000 tons from neodymium-iron-boron (NdFeB) magnet scraps. Terbium oxide production is also projected to rise to around 650 tons, with around 75 tons produced from China’s mining quotas, 390 tons from ore feedstock imports, and 180 tons from NdFeB magnet scraps.

Over the past decade, many magnet plants have reduced their consumption of ferro-dysprosium and terbium metal by more than 70% to cut production costs. Market participants warn that this could lead to a surplus of over 1,000 tons of dysprosium oxide and more than 200 tons of terbium oxide this year, unless China’s State Reserve Bureau intervenes with stockpiling efforts to alleviate inventory pressures on rare earth separation plants.

Expansion Slows Amidst Growing Competition

The average operating rates at most of China’s magnet plants have declined to around 60% over the past two months, driven by falling magnet prices and reduced consumer orders during the traditional off-season. China’s rough NdFeB magnet output reached 270,000-280,000 tons in 2023, an 8% increase from the previous year. Some market participants expect production to rise to around 300,000 tons in 2024, as large-scale magnet plants boost operations to secure more market share and consumer orders. However, medium and small magnet plants have been forced to reduce their operating rates to below 50% or suspend operations entirely due to profitability and cash flow challenges.

Major Chinese magnet manufacturer Jinli Magnet aims to increase its production capacity to 38,000 tons per year for rough NdFeB magnets by the end of 2024, and to 40,000 tons per year for high-performance rare earth permanent magnets and advanced magnetic components by 2025. Currently, the company’s output capacity stands at 23,000 tons per year. Meanwhile, Yantai Zhenghai Magnetic Material plans to reach an output capacity of 36,000 tons per year for permanent magnetic materials by 2026.

A few magnet plants have slowed their output expansions, as fierce price competition in downstream applications, particularly in the new energy vehicle (NEV) industry, has severely squeezed profit margins. "I heard that major Chinese NEV manufacturer BYD was required to use cerium-iron-boron (CeFeB) magnets instead of NdFeB in a bid to reduce its production costs and enhance global competitiveness," a source from a magnet plant revealed.

China's production of CeFeB magnets is forecast to rise to over 100,000 tons this year, up from approximately 70,000 tons in 2023, the source added.

IonicRE Rare Earth Recycling Deal Targets Ex-China Magnet Supply Gap

Ionic rare earths

IonicRE rare earth recycling plans have gained a technology boost after the Australian rare earths miner, refiner and recycler signed a licensing agreement with US refiner Nth Cycle. The deal gives Ionic Rare Earths access to electro-extraction technology for its US and global recycling operations.

IonicRE rare earth recycling will focus on recovering rare earth oxides from neodymium-iron-boron permanent magnet dust. These oxides can then be reused in the production of new rare earth magnets.

IonicRE rare earth recycling is strategically important because magnet supply chains outside China remain weak in midstream processing and recycling. The agreement helps address that gap by adding technology that can convert magnet waste into reusable rare earth oxide products.

Nth Cycle’s technology can break down NdFeB magnet dust into rare earth oxides. This supports circular supply chains for materials used in electric vehicles, wind turbines, robotics, defence systems and advanced electronics.

NdFeB Magnet Dust Becomes a Strategic Feedstock

NdFeB magnet recycling is becoming more important as demand for rare earth permanent magnets grows. Magnet production generates upstream and downstream dust, and that material contains valuable neodymium, praseodymium and heavy rare earth elements.

IonicRE already has proprietary technology for recycling REPM metal dust. Nth Cycle’s electro-extraction process adds another capability and fills a specific midstream gap in the ex-China recycling chain.

The technology could be used at IonicRE’s Belfast recycling facility in Northern Ireland. It may also support the company’s 50:50 joint venture with Viridis at a planned recycling facility in Brazil.

The US is another important target. IonicRE already supplies technology to US Strategic Metals’ Missouri recycling facility, which is expected to recover neodymium-praseodymium oxide and heavy rare earths including dysprosium, terbium, samarium, gadolinium and holmium.

This matters because recycling can reduce dependence on mined supply and improve traceability. It can also create shorter, more secure material loops for magnet makers and industrial users.

Recycling Adds Depth to Ex-China Rare Earth Supply

IonicRE remains a small player in the global rare earth chain, but its strategy connects mining, refining and recycling. The company owns 60% of the Makuutu rare earth project in Uganda, which contains 617mn t of ore grading 630ppm total rare earth oxide.

The recycling technology agreement adds another route to supply. Rather than relying only on new mined material, IonicRE can target waste streams from magnet production and end-use supply chains.

This is important because China still dominates rare earth refining. China accounted for 91% of global rare earth refining in 2024, leaving western and allied supply chains exposed to processing concentration.

Recycling will not replace primary rare earth mining. But it can provide incremental supply, improve resilience and help build processing expertise outside China.

The real value lies in integration. Recovered rare earth oxides must be refined, qualified, converted into metals or alloys, and returned to magnet production.

IonicRE’s agreement with Nth Cycle therefore supports a wider strategic goal. It helps build the technical infrastructure needed for a circular rare earth magnet supply chain outside China.

The Metalnomist Commentary

IonicRE’s licensing deal shows that rare earth recycling is moving from sustainability language into supply-chain strategy. The key opportunity is not only recovering magnet waste, but turning it into qualified oxide feedstock that can support non-China magnet production.

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.

Heavy rare earth free NdFeB alloy from VAC targets China-independent magnet supply

Vacuumschmelze

Heavy rare earth free NdFeB alloy from VAC marks a major shift in Western magnet strategy. German producer Vacuumschmelze has launched VACODYM 902 TP, a neodymium-iron-boron grade that avoids dysprosium and terbium. As a result, the heavy rare earth free NdFeB alloy offers high performance while reducing exposure to increasingly volatile heavy rare earth markets.

VACODYM 902 TP extends VAC’s family of reduced-HRE NdFeB grades. The new heavy rare earth free NdFeB alloy achieves a remanence of at least 1.40 Tesla and a coercivity of at least 1,190 kA/m. These metrics place it firmly in the high-performance segment for traction motors and industrial drives. Therefore, OEMs gain an alternative to conventional NdFeB magnets that rely on dysprosium and terbium to maintain coercivity at elevated temperatures.

Western buyers have sought heavy rare earth free NdFeB alloy solutions for several years. Dysprosium and terbium production still concentrates overwhelmingly in China, which creates structural supply risk. Meanwhile, policymakers and OEMs push for magnet designs that reduce heavy rare earth intensity without sacrificing performance. VAC’s new grade directly responds to this pressure and is fully produced within Western supply chains.

Export controls and price spikes intensify heavy rare earth risk

China’s export controls on certain rare earths have tightened heavy rare earth availability for Atlantic buyers since April. Spot prices for dysprosium and terbium outside China surged immediately after the controls. European terbium oxide prices rose by 268pc between 1 April and early September, reaching $3,300-3,800/kg cif Europe. As a result, magnet makers now face severe raw material cost volatility and procurement uncertainty.

This environment accelerates the search for alternatives to heavy rare earth dependent NdFeB grades. VAC explicitly cites volatile raw material costs and market uncertainty as major supply chain challenges. Therefore, its new alloy is positioned as a “geopolitically independent alternative” to traditional heavy rare earth based solutions. The goal is clear: decouple magnet performance from a small, politically sensitive set of Chinese-controlled metals.

Other Western players are also moving to build ex-China heavy rare earth capacity. Lynas has started small-scale dysprosium and terbium oxide production in Malaysia. US producer Energy Fuels has produced pilot-scale dysprosium and plans larger-scale dysprosium and terbium output in Utah by late 2026. MP Materials supplies a heavy rare earth concentrate, SEG+, containing dysprosium and terbium for downstream processors.

Western magnet supply chains pivot toward diversified feedstocks

VAC’s launch of a heavy rare earth free NdFeB alloy fits a broader diversification trend. Western magnet producers and their customers want designs that either use fewer heavy rare earths or none at all. This shift complements efforts to develop new mining, separation and recycling capacity outside China. It also supports OEM strategies to meet ESG targets and reduce geopolitical risk in EV and wind supply chains.

VAC emphasises the importance of resilient, regionally anchored magnet value chains. Its new alloy, fully produced in the West, supports that objective. However, performance in real-world motor and generator platforms will ultimately determine adoption. Automotive and industrial customers will test VACODYM 902 TP against existing HRE-containing grades on efficiency, temperature stability and cost.

If performance proves comparable, heavy rare earth free NdFeB alloy families could gain rapid traction. That would gradually reduce Western dependence on Chinese dysprosium and terbium, even as new ex-China projects ramp up. In parallel, recycling and alternative motor topologies may further ease heavy rare earth demand over the next decade.

The Metalnomist Commentary

VAC’s move shows how magnet technology, not only mining, will shape the next phase of the rare earth race. A commercially viable heavy rare earth free NdFeB alloy gives Western OEMs a real lever to hedge against Chinese export controls and price spikes. Market participants should watch qualification timelines closely, because large-scale adoption could materially shift dysprosium and terbium demand forecasts.

AML Defense Magnet Contract Advances Domestic NdFeB Qualification for US Supply Chains

Advanced Magnet Lab

AML defense magnet contract award marks another step in the US effort to qualify domestic neodymium-iron-boron magnets for defence applications. Advanced Magnet Lab received a $2mn contract from the Defense Logistics Agency to support high-grade magnet qualification.

AML defense magnet contract work will run over two years and covers supply chain management, alloying and permanent magnet manufacturing. The award is small in value, but important in strategic function.

AML defense magnet contract support matters because NdFeB magnets remain one of the most exposed links in US defence and advanced manufacturing supply chains. The US needs not only rare earth oxides, but qualified metals, alloys and finished magnets.

The contract also shows that Washington is moving beyond upstream rare earth projects. Defence supply security now depends on converting NdPr and dysprosium feedstock into magnets that can meet military performance and qualification requirements.

Qualification Becomes the Real Magnet Supply Bottleneck

AML said it uses a new manufacturing process that simplifies production and expands options for magnet design, materials and performance. That could help the company tailor magnets for different defence and industrial applications.

This is important because magnet qualification is a long and demanding process. Defence customers need consistent magnetic performance, material reliability, traceable feedstock and controlled production routes.

NdFeB magnets are critical for motors, actuators, sensors, guidance systems, aerospace platforms, robotics and other high-performance equipment. Dysprosium is especially important where magnets must retain performance under high temperatures.

The DLA award therefore targets a practical bottleneck. The US cannot build a secure magnet supply chain by mining rare earths alone. It must also qualify alloying, metallisation and final magnet manufacturing.

For AML, the contract gives validation from a defence procurement agency. For the broader market, it signals that domestic magnet capacity is becoming a formal industrial security priority.

Feedstock Partnerships Support Non-China Magnet Strategy

AML sources magnet feedstock from US and European rare earth suppliers. This sourcing strategy is central to building a more resilient magnet supply chain outside China.

Phoenix Tailings will supply neodymium-praseodymium and dysprosium metals. That gives AML access to rare earth metal feedstock, which is a critical step between oxide production and magnet manufacturing.

Ionic Rare Earths will supply NdPr and dysprosium oxides. Texas-based Momentum is also a likely supplier of NdPr oxides.

This mix of suppliers shows how the US magnet chain is being built through multiple feedstock routes. Oxides, metals, alloying and magnet production must connect before customers can receive usable products.

The strategic issue is integration. Rare earth projects often focus on mining or separation, but magnet production requires many precise steps after that.

AML’s DLA contract highlights the direction of US policy. Washington is trying to create a qualified domestic magnet ecosystem by linking defence demand with non-China feedstock and manufacturing capability.

The Metalnomist Commentary

AML’s contract is small, but its significance is large because magnet qualification is one of the hardest gaps in the US rare earth chain. The next competitive advantage will come from companies that can connect NdPr, dysprosium, alloying and finished magnet performance into one trusted defence-ready platform.

China's Northern Rare Earth Forms Joint Venture for NdFeB Magnet Production

Northern Rare Earth

China's Northern Rare Earth (NRE), one of the country's leading light rare earths producers, has announced the formation of a joint venture (JV) to construct a high-performance neodymium-iron-boron (NdFeB) magnet production plant in Baotou, located in the Inner Mongolia region. This initiative is part of NRE's strategic push to expand its footprint in the magnet and renewable energy sectors.

The JV, named Northern Zhaobao Magnet (Inner Mongolia), will focus on producing NdFeB permanent magnets, which are essential for a variety of high-tech applications, including wind turbines, compressors, and industrial motors. The plant will have a production capacity of 3,000 tons per year. NRE has committed a significant investment of 40 million yuan ($5.6 million) in the JV, which will be a collaborative effort with well-established magnet manufacturers Ningbo Zhaobao Magnet and Ningbo Souwest Magnet, alongside Suzhou Torin Drive, a key equipment producer.

The JV has a registered capital of 100 million yuan, with ownership stakes distributed as follows: NRE holds 40%, Ningbo Zhaobao Magnet 35%, Torin Drive 12.5%, and Ningbo Souwest Magnet 12.5%. Construction is slated to be completed by May 2025.

This move marks another key development in NRE's ongoing expansion within the rare earth industry. Recently, the company commenced operations at its first phase of a rare earth smelting upgrade plant in Baotou Huamei, a wholly-owned subsidiary. The plant is set to become the world's largest rare earth feedstock production facility, with an impressive extraction and separation capacity of 106,661 tons per year (t/yr) of rare earth oxide (REO). Furthermore, its processing capacity for mixed rare earth concentrate is set at 198,000 t/yr, which is equivalent to 115,018 t/yr of 58.09% REO, alongside precipitation and crystallization capacities of 141,070 t/yr REO.

Despite the strong push for growth, NRE's financial performance has been affected by weaker-than-expected demand in the global rare earth market. In the third quarter, the company posted a 1.5% year-on-year revenue increase, reaching 8.56 billion yuan, while its net profit saw an 11% increase to 359.92 million yuan. However, NRE's performance for the first three quarters of 2024 showed a 14% decline in revenue to 21.55 billion yuan, and a significant 71% drop in net profit, which fell to 405.32 million yuan. The weaker-than-expected demand and lower rare earth prices—partly due to abundant spot supplies and insufficient growth in consumer demand—continue to weigh on the company's profits. The price of praseodymium-neodymium metal dropped by 28% year-on-year, with the average price during January-September falling to 477 yuan/kg.

Strategic Implications and Market Outlook

NRE's decision to enter the NdFeB magnet production market aligns with China's broader ambitions to dominate the rare earth sector, particularly in materials critical for renewable energy applications. As the world transitions toward cleaner energy sources, demand for NdFeB magnets is expected to grow, driven by the proliferation of electric vehicles, wind energy, and other green technologies.

However, NRE's profitability is under pressure due to the current low prices of rare earth metals, which could dampen its short-term outlook. The company's performance in the fourth quarter will depend on factors like global rare earth prices, market demand for clean energy technologies, and the success of its ongoing projects, such as the Baotou Huamei plant.

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.

Heraeus Remloy Magnet Recycling Sale Strengthens Mkango’s European Rare Earth Platform

Heraeus

Heraeus Remloy magnet recycling is set to move under Mkango Resources after Germany-headquartered Heraeus agreed to sell its rare earth magnet recycling unit to the Canadian company. The deal gives Mkango direct access to a German platform for producing neodymium-iron-boron alloy powders.

Heraeus Remloy magnet recycling is strategically important because NdFeB powders can be used by customers to manufacture new permanent magnets. These magnets are critical for electric motors, wind turbines, robotics, electronics, defence systems and advanced industrial equipment.

Heraeus Remloy magnet recycling operates from Bitterfeld in Saxony-Anhalt. The facility can produce 600 t/yr of rare earth magnetic powders, with potential to ramp up to 1,200 t/yr.

The transaction is expected to close in summer 2026, subject to regulatory approvals. Financial details were not disclosed.

Bitterfeld Facility Adds NdFeB Powder Capacity

Heraeus Remloy was developed as an in-house startup within Heraeus. Its focus on NdFeB alloy powders places it in a valuable part of the magnet recycling chain.

This matters because recycling rare earth magnets is not only about collecting scrap. The material must be processed into usable feedstock that magnet makers can qualify and reuse.

The Bitterfeld plant gives Mkango an operational base in Germany, one of Europe’s core advanced manufacturing markets. That location could support customers seeking regional rare earth magnet materials with stronger supply-chain traceability.

The facility’s 600 t/yr current capacity is modest in global terms, but meaningful for Europe’s early-stage magnet recycling industry. The option to ramp up to 1,200 t/yr adds future flexibility if demand strengthens.

For Mkango, the acquisition can deepen its downstream rare earth position. Instead of focusing only on mining or separation, the company gains a route into recycled magnet powder production.

Europe’s Magnet Recycling Chain Gains Strategic Relevance

The deal comes as Europe tries to reduce dependence on China-dominated rare earth and magnet supply chains. Recycling is becoming one of the fastest practical routes to add regional material availability.

NdFeB magnets contain neodymium and praseodymium, and some high-performance applications also use dysprosium or terbium. Recovering these materials from magnet scrap can reduce pressure on primary supply and improve circularity.

Permanent magnet recycling also supports European industrial policy. Automotive, wind power, automation and defence manufacturers increasingly need secure, traceable and lower-risk sources of magnet materials.

However, recycled powders still need customer qualification. Magnet producers require consistent chemistry, particle characteristics and performance before they can use recycled feedstock at scale.

Mkango’s challenge will be to turn the Bitterfeld asset into a reliable commercial platform. If it can expand production and secure customers, the acquisition could strengthen Europe’s rare earth recycling ecosystem.

The Metalnomist Commentary

Mkango’s purchase of Heraeus Remloy shows that rare earth recycling is moving from concept to industrial asset consolidation. Europe’s magnet security will depend on practical facilities like Bitterfeld that can convert scrap into qualified, reusable magnetic materials.

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.

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.

MP Materials USAR Lawsuit Raises Stakes in US Rare Earth Magnet Race

MP Materials USAR

MP Materials USAR lawsuit has opened a new front in the race to build domestic rare earth magnet capacity, with MP accusing rival USA Rare Earth of misappropriating proprietary magnet technology through a former employee. The dispute centres on grain boundary diffusion technology, a key process used to improve high-performance neodymium-iron-boron magnets.

MP Materials USAR lawsuit was filed in Texas Business Court on 26 May. MP is seeking injunctions against all USAR entities and alleges that a former employee improperly disclosed sensitive formulas and processes to the rival company.

MP Materials USAR lawsuit is strategically important because both companies are building large US magnet production platforms. The dispute could affect investor confidence, customer qualification and the timing of domestic magnet supply for defence, automotive and industrial users.

The case also shows that the US rare earth sector has moved beyond mining and separation. Competition is now intensifying around process know-how, metallization, alloying, powder metallurgy and magnet finishing.

Grain Boundary Diffusion Becomes a Competitive Battleground

Grain boundary diffusion is an important technology in high-performance NdFeB magnet production. It can improve magnet performance and reduce the use of costly heavy rare earths in certain applications.

That makes the process commercially valuable. Rare earth magnets used in defence, electric motors, robotics and aerospace systems must meet strict performance, heat resistance and reliability requirements.

MP alleges that its proprietary grain boundary diffusion technology was developed through years of work and significant investment. The company claims former employee Kevin Elkins had access to extremely sensitive formulas and processes before joining USAR.

MP also alleges that USAR recruited several MP employees since 2025, including Elkins and at least seven other key staff. MP described this as part of a broader trade secret raiding campaign.

These remain allegations, and the court process will determine the outcome. But the filing highlights a real industrial issue: skilled people and protected know-how are now as important as rare earth feedstock in the US magnet supply chain.

Legal Dispute Adds Risk to Domestic Magnet Scale-Up

Both companies are trying to scale US magnet production quickly. MP is expanding its Independence facility in Fort Worth, Texas, to 3,000 t/yr, including metallization, alloying, powder metallurgy, grain boundary diffusion and magnet finishing.

MP is also building a larger Texas facility to raise total magnet production to 10,000 t/yr. That expansion is central to its ambition to create a fully integrated rare earth-to-magnet supply chain in the US.

USAR also plans to produce 10,000 t/yr of magnets by 2029, up from current capacity of 4,800 t/yr. The overlap between these expansion targets makes the legal dispute commercially sensitive.

For the US government and downstream customers, the case creates a difficult dynamic. Washington needs multiple domestic magnet suppliers, but those suppliers also need enforceable intellectual property protections.

The dispute could slow collaboration, complicate customer qualification or increase caution around hiring and technology transfer. It may also push rare earth companies to tighten controls over employee access, process documentation and proprietary manufacturing routes.

The broader message is clear. Domestic magnet capacity will not be secured only through capital spending. It will require protected process technology, skilled labour, validated production and trusted commercial behaviour.

The Metalnomist Commentary

The MP-USAR dispute shows that the rare earth magnet race is becoming a technology and intellectual property contest. The US needs faster magnet scale-up, but it also needs clear rules that protect proprietary process know-how while keeping domestic supply-chain development on track.

IonicRE Rare Earth Oxide Supply to AML Advances US Defence Magnet Chain

Ionic Rare Earth

IonicRE rare earth oxide supply to Advanced Magnet Lab marks a small but strategic step in building a non-China supply route for defence-grade permanent magnets. The Australian rare earths miner, refiner and recycler has started shipping high-purity rare earth oxides from its Belfast recycling facility to the US magnet producer.

IonicRE rare earth oxide supply currently involves kilogram-scale volumes of neodymium, praseodymium and dysprosium oxides. The material has 99.5-99.9% purity and will be used by AML to produce high-grade sintered neodymium-iron-boron magnets for US defence customers.

IonicRE rare earth oxide supply is important because magnet qualification starts with small, tightly controlled shipments. These early volumes help validate chemistry, process compatibility and performance before larger commercial deliveries begin.

The companies are already discussing a second sale of neodymium and dysprosium. They have also signed a non-binding memorandum of understanding for longer-term cooperation, with future commercial volumes likely to reach tonnes in 2027.

Belfast Recycling Turns Magnet Scrap Into Strategic Feedstock

IonicRE’s Belfast facility currently has 10 t/yr of rare earth recycling capacity. While modest, it gives western magnet producers a practical source of recycled rare earth oxides from end-of-life and industrial magnet scrap.

The supply chain includes used NdFeB magnet feedstock from German manufacturer Vacuumschmelze and scrap handler European Metal Recycling. IonicRE also has offtake relationships with automotive companies including Ford, Bentley and Wrightbus.

This structure matters because rare earth recycling can shorten supply chains and improve traceability. It also reduces dependence on newly mined material at a time when rare earth separation and magnet production remain highly concentrated in China.

The company’s planned additional Belfast facility received £12mn from the UK government in January. That plant is expected to produce 400 t/yr of light rare earths neodymium-praseodymium, as well as heavy rare earths dysprosium and terbium, by the first half of 2028.

Dysprosium is particularly important for defence magnets because it helps maintain magnetic performance under heat and stress. That makes recycled heavy rare earth recovery strategically valuable, even at relatively small volumes.

AML Link Connects Recycling to Defence Magnet Production

AML will use IonicRE’s oxides to produce high-grade sintered NdFeB magnets for defence applications. This connects recycled rare earth feedstock directly to one of the most sensitive parts of the US critical minerals supply chain.

The US is trying to secure rare earth permanent magnet supply outside China after Beijing imposed export controls on rare earth permanent magnets in April 2025. China controls about 90% of the supply chain, leaving US defence and industrial users exposed to licensing risk.

IonicRE brings a wider rare earth platform to the partnership. The company owns 60% of Uganda’s Makuutu rare earth project, holds a 50% stake in a Brazilian rare earth refining joint venture with Viridis, and has signed an MoU with US Strategic Metals for a Missouri recycling facility.

That portfolio gives IonicRE several possible feedstock and processing routes. But the AML shipment is important because it moves from strategy into physical supply.

The key challenge now is scale. Kilogram shipments can support qualification, but defence and industrial magnet markets will need repeatable tonne-scale supply, consistent purity and reliable delivery.

If IonicRE and AML can move from pilot volumes to commercial supply, the partnership could become a useful building block in the US rare earth magnet chain. It would also show how recycling can complement mining and refining in reducing China exposure.

The Metalnomist Commentary

This shipment is small in volume but large in strategic meaning. Non-China rare earth supply chains will be built through qualification steps like this, where recycled oxides prove they can become defence-grade magnets.

HyProMag to triple magnet capacity with US hub-and-spoke expansion

HyProMag

HyProMag to triple magnet capacity as it builds a US hub-and-spoke network. HyProMag to triple magnet capacity by adding sites in Nevada and South Carolina. HyProMag to triple magnet capacity to strengthen rare earth magnet recycling.

DFW hub anchors a national recycling network

HyProMag is advancing a Dallas–Fort Worth hub for NdFeB magnet recycling and manufacturing. The DFW facility will produce 750 t/yr of recycled sintered NdFeB magnets. It will also deliver 807 t/yr of NdFeB co-products over a 40-year life. Commercial operations are scheduled to begin in the first half of 2027.

Spokes in Nevada and South Carolina accelerate feedstock and scale

The company is studying new facilities in Reno and Williston to supply the hub. This hub-and-spoke model reduces logistics and speeds scrap-to-magnet turnaround. The expansion study supports up to four additional magnet production lines. Partner ILS is stockpiling HDD magnet scrap and providing site-sharing at both spokes.

The Metalnomist Commentary

The plan tightens US circular supply for NdFeB magnets as demand rises in EVs, wind, and electronics. Execution risk centers on feedstock continuity and end-market qualification, but early HDD scrap aggregation is a smart hedge.