China’s Recycled Rare Earth Output Drops in 2024 on Supply and Margin Pressures

China’s Recycled Rare Earth

Rare Earth Oxide Output Falls Despite Long-Term Growth

China’s recycled rare earth oxide (REO) output declined in 2024, primarily due to limited NdFeB magnet scrap supply and weaker plant margins. Ji’an Xintai Technology’s chairman, Liu Weihua, reported that REO output from NdFeB magnet scrap totaled 34,147 tonnes, down 14% from 2023 but up 2% from 2022.

This total includes 26,504t of praseodymium-neodymium oxide, along with smaller quantities of gadolinium, terbium, dysprosium, and holmium oxides. By comparison, China produced 39,662t of REO from scrap in 2023, indicating a clear year-over-year contraction in recycled supply.

Scrap Availability and Profitability Hit Recycling Plants

Liu noted that larger magnet manufacturers are producing less NdFeB scrap due to technology upgrades. This shift, combined with traders' reluctance to sell at lower prices, has constrained the scrap supply chain.

Meanwhile, rare earth recycling plants have seen shrinking profit margins amid firm scrap prices and falling REO market prices. To cope, many rough magnet manufacturers have started in-house recycling to improve resource efficiency and profitability.

China currently operates about 40 recycling plants for NdFeB scrap, with Jiangxi province accounting for 64% of the nation’s recycled REO output. Shandong and Jiangsu followed with 15% and 11%, respectively, consolidating over 86% of China's total recycling capacity.

China Maintains Global Dominance in Rare Earth Supply

Global REO output in 2024 reached 454,000 tonnes, with China contributing roughly 90% through its mining quotas, scrap recycling, and imports. Despite this year’s dip, China's REO recycling capacity surpassed 80,000t in 2024 and is expected to hit 100,000t in 2025.

As demand for NdFeB magnets surges globally, China’s long-term recycling potential remains strong, albeit challenged by short-term headwinds.

The Metalnomist Commentary

China’s temporary dip in recycled rare earth output reflects deeper structural tensions between supply control and market sustainability. The push for high-tech efficiency is narrowing scrap availability, but rising global magnet demand ensures that China's recycling sector will remain a pillar of strategic resource security.

Baogang rare earth concentrate output cut in 1H as Northern Rare Earth sales hold firm

Baogang Rare Earth

Baogang rare earth concentrate output declined in the first half. Baogang rare earth concentrate output fell to 211,100t, equal to 105,550t REO. Baogang rare earth concentrate output still supplied 204,900t to Northern Rare Earth for oxide production.

Production, pricing, and 2025 guidance

Baogang reduced first-half output from 256,000t last year. The company did not disclose the reason. However, sales to Northern Rare Earth continued at scale.

Average sales price reached Yn18,700/t for 50% REO, ex-VAT. That was Yn700/t above the 2024 average. It was Yn20/t lower than the prior year period.

Baogang guides 2025 concentrate output at 390,000t. That equals 195,000t of 50% REO. Guidance exceeds 2024’s 377,300t and 2023’s 320,000t.

Bayan Obo scale and NRE expansion

Baogang owns Bayan Obo, the world’s largest rare earth mine. Reserves exceed 35mn t REO, or 81% of China’s total. Therefore, any shift in Bayan Obo output moves global light rare earth supply.

Baogang holds 33.03% of Northern Rare Earth. NRE expanded metals and materials output on strong downstream demand. First-half rare earth metals output rose 28% to ~24,107t.

NRE revenue rose 45% to Yn18.86bn and profit climbed to Yn931mn. The firm cited higher prices and volumes. NRE’s 2024 light REO mining quota was 188,650t. That equals 75% of China’s light rare earth quota.

The Metalnomist Commentary

Short-term softness in Baogang’s first-half output appears tactical, not structural. Guidance implies a higher run-rate into 2025, backed by NRE’s quota and stronger downstream pull from EVs, HVAC motors, and robotics. Watch realized prices versus quota cadence; policy or environmental checks at Bayan Obo remain key swing factors.

EMR and Ionic Technologies Partner on Rare Earth Magnet Recycling Supply Chain

Ionic Technologies

UK Magnet Recycling Gains Momentum with EMR-Ionic Technologies Agreement

EMR and Ionic Technologies partner on rare earth magnet recycling, marking a key development in the UK’s circular economy for critical materials. EMR, a leading UK-based metals recycler, has signed a non-binding supply agreement with Ionic Technologies to deliver end-of-life magnets to its Belfast facility. These magnets will serve as feedstock for Ionic’s rare earth oxide (REO) extraction and separation process.

The Belfast demonstration plant, supported by a £1.7 million grant from the UK’s Advanced Propulsion Centre in 2022, can process 30 tonnes per year of waste magnets to yield up to 10 tonnes of high-purity REOs annually. These include critical materials like neodymium, praseodymium, and dysprosium—essential for electric motors, wind turbines, and defense systems. As EMR and Ionic Technologies partner on rare earth magnet recycling, the project aims to secure domestic REO supply and reduce reliance on Chinese imports.

This latest deal builds on Ionic Technologies’ earlier agreement with South Korea’s DNA Link, which could lead to future REO offtake arrangements. Ionic Technologies, a subsidiary of ASX-listed Ionic Rare Earths, is positioning itself at the forefront of rare earth recycling innovation in Europe. As demand for sustainable and secure REO sources accelerates, EMR and Ionic Technologies partner on rare earth magnet recycling to help meet future supply chain needs.

The Metalnomist Commentary

The EMR-Ionic partnership reflects the strategic pivot toward localised, sustainable sourcing of rare earths. With growing geopolitical tension around REO supply, vertically integrated recycling chains like this one could offer both economic and national security advantages.

China Launches World's Largest Rare Earth Production Base in Baotou

Northern Rare Earth (NRE)

Northern Rare Earth (NRE), a leading Chinese light rare earth producer, has officially commenced operations at the world's largest rare earth feedstock production base, situated in Baotou, Inner Mongolia. The project, which represents a significant milestone in global rare earth production, began output at the first phase of a major smelting upgrade plant at Baotou Humei, a wholly-owned subsidiary of NRE, on October 15. The plant’s construction started in March 2023, with an investment totaling 7.8 billion yuan ($1.1 billion).

Facility Capacity and Impact on Rare Earth Market

The upgraded facility boasts an impressive extraction and separation capacity of 106,661 tons per year (t/yr) of rare earth oxide (REO). Additionally, it features a processing capacity of 198,000 t/yr for mixed rare earth concentrate, translating to an equivalent of 115,018 t/yr of 58.09% REO. The plant’s precipitation and crystallization capacity stands at 141,070 t/yr REO, while its burning capacity is 39,600 t/yr REO. By year’s end, these upgrades are expected to increase Baotou's rare earth smelting and separation output capacity to 234,000 t/yr, according to market sources.

Looking ahead, NRE plans to move forward with a second phase of construction at the Baotou facility, although details such as launch date, project capacity, and duration remain undisclosed.

Auction Sales and Market Trends

In recent market activity, NRE sold 295 tons of praseodymium-neodymium metal via auctions held on the Baotou rare earth products exchange (Repe). This marked the company’s inaugural metal auction series, which began on September 10. NRE subsequently increased the starting prices of the metal to 530 yuan per kilogram on October 9, up from 525 yuan/kg during previous sales in September and early October. Despite this price adjustment, lower consumer demand was evident, with only 5 tons sold during auctions held on October 11 and 14, leaving 45 tons unsold.

Financial Performance

Despite these production advancements, NRE has faced financial challenges. The company reported a 21.2% year-on-year decline in revenue, totaling 12.99 billion yuan, for the January-June period. Net profit fell sharply by 95.7%, amounting to just 45.39 million yuan. NRE attributed the financial setbacks to declining prices of praseodymium-neodymium due to lower-than-expected demand growth from key downstream sectors and an oversupply of rare earth feedstock.

China's Baogang Increases Rare Earth Concentrate Prices for Q1 2025

Baogang

Baogang, a leading Chinese steelmaker, has announced a price increase for its rare earth concentrate supplies to Northern Rare Earth (NRE) for the first quarter of 2025. This marks a continuation of the upward price trend observed throughout 2024.

Price Hike Details

The newly agreed benchmark price for January-March delivery is set at 18,618 yuan/dry metric tonne (dmt) ($2,539/dmt) for 50% rare earth oxide (REO) content, excluding the 13% value-added tax (VAT). This represents an increase from the fourth quarter of 2024's price of 17,782 yuan/dmt.  The selling price will be adjusted by 372.36 yuan/dmt for each 1% change in REO content.

This latest price adjustment reflects an 11% rise compared to the third quarter of 2024, when the benchmark price stood at 16,741 yuan/dmt.  This sustained upward trajectory highlights the growing demand and potentially tightening supply dynamics within the rare earth market.

Background and Industry Implications

Baogang, owner of the Bayan Obo mine in Inner Mongolia, one of the world's largest rare earth mines with 35 million tonnes of REO reserves, exclusively supplies its rare earth concentrate to NRE for REO production.  The close relationship between the two companies is further cemented by their shared major shareholder, Baotou Steel, which holds a 36.66% stake in Baogang and a 55.02% stake in NRE.  This interconnected structure significantly influences the rare earth supply chain in China and globally. The price increase implemented by Baogang could have ripple effects throughout the rare earth industry, potentially impacting downstream manufacturers reliant on these critical materials.  It also underscores the strategic importance of rare earth elements and the pricing power held by key players in the sector.

China Rare Earth Resources Expand as Maoniuping REO Estimate Nearly Doubles

China Natural Resources

China rare earth resources have received another major boost after the natural resources ministry confirmed 9.67 million tonnes of rare earth oxide resources at the Maoniuping mining area in Sichuan province. The updated estimate nearly doubles the 4.96 million tonnes of REO previously reported by China Rare Earth Group in September 2024.

The Maoniuping mine is operated by China Rare Earth Group, the country’s largest state-owned rare earth producer. The new resource verification strengthens China’s upstream position in a sector where it already dominates separation, refining, magnet materials, and downstream industrial applications.

China rare earth resources remain central to global supply chains for electric vehicles, wind turbines, defense systems, robotics, electronics, and advanced manufacturing. The larger Maoniuping resource base gives Beijing more long-term optionality as rare earth demand rises and geopolitical competition intensifies.

Maoniuping Reinforces China’s Rare Earth Industrial Advantage

The Maoniuping update is strategically important because China’s rare earth strength is not limited to mining. The country controls the most advanced and integrated rare earth processing system, from ore extraction to separated oxides, metals, alloys, and permanent magnets.

A larger confirmed REO resource base supports that industrial chain. It gives China Rare Earth Group a stronger reserve platform and reinforces Beijing’s ability to manage supply, pricing, and export policy across rare earth markets.

The timing also matters. China has pledged to launch a new round of mineral exploration actions over the next five years, aiming for breakthroughs in strategic resources. The Maoniuping result shows how exploration and state-backed consolidation are working together to protect China rare earth resources and industrial competitiveness.

Antimony Discovery Adds Weight to Strategic Mineral Policy

China also confirmed antimony resources equivalent to 51,455 tonnes of metal at the Waxigou mine in Gansu province. The project is held by Gansu Sanchang Mining and adds another resource point in a market already affected by tight supply and export controls.

Antimony has become more strategically visible because it is used in flame retardants, alloys, semiconductors, ammunition, and defense-related applications. China accounts for a dominant share of global refining capacity, making any new domestic resource confirmation important for both supply security and policy leverage.

Beijing has already placed antimony and rare earths under stricter dual-use export licensing controls. As a result, ex-China supply has tightened, prices have surged, and overseas buyers are reassessing dependence on Chinese-controlled critical mineral chains.

The Metalnomist Commentary

China’s latest rare earth and antimony confirmations show that Beijing is strengthening both the upstream and regulatory sides of critical mineral control. For the US, EU, Japan, and Korea, the message is clear: diversification must include mining, refining, recycling, and advanced material production, not just alternative offtake contracts.

MP Materials Boosts NdPr Oxide and REO Production in Q3 Despite Market Challenges

MP Materials

MP Materials, a leading US-based producer of rare earths, reported a significant increase in the production and sales of neodymium-praseodymium (NdPr) oxide and rare earth oxide (REO) for the third quarter of 2024. Despite ongoing market pressures, including oversupply and sluggish demand, the company’s performance demonstrates resilience and a strategic focus on expanding its output to meet global demand, particularly in sectors like electric vehicles (EVs) and renewable energy.

Key Q3 Production and Sales Highlights

In the July-September period, MP Materials ramped up its NdPr oxide production by 76%, reaching 478 tonnes, up from 272 tonnes produced in the second quarter of 2024. This surge in production was complemented by a rise in sales volume, which increased to 404 tonnes from just 136 tonnes in the previous quarter. However, despite the strong output, the average realized price for NdPr oxide fell slightly to $47 per kilogram, compared to $48 per kilogram in Q2.

Looking further upstream, MP Materials reported a 51% increase in its total REO production, which rose to 13,742 tonnes in Q3, compared to 9,084 tonnes in the second quarter. The company also saw a substantial increase in REO sales, reaching 9,729 tonnes in Q3, up from 5,839 tonnes in Q2.

Market Dynamics and Price Recovery

Although NdPr prices have been under pressure for much of 2024 due to oversupply and weaker demand, the market saw a rebound in August and early September. This price rally was driven by tighter oxide supply in China, coupled with an uptick in demand, particularly from industries focused on clean energy and electric vehicles. The shift in market conditions, including tightening supply chains and renewed global demand, provided a boost to prices and helped stabilize the rare earth market temporarily.

MP Materials' increased production and sales volumes come at a pivotal time, as the demand for rare earth materials, especially those used in the manufacturing of magnets for electric motors and wind turbines, continues to rise. The company’s efforts to boost output align with broader market trends seeking to diversify the supply of critical minerals, reducing dependency on China, which dominates the rare earth market.

MP Materials Lifts Rare Earths Output, But Deepening Losses Reflect Cost Pressures

MP Materials

Mountain Pass Mine Production Climbs, While Margins Face Squeeze from Rising Costs

NdPr Metal, Magnet Output Set to Expand US Supply Chain

MP Materials, a leading US rare earths producer, increased its output at the Mountain Pass mine in California during the fourth quarter of 2024. However, the company’s net loss grew, driven by higher production costs and lower global rare earth prices.

Rare Earth Oxides and NdPr Output Hit New Highs

MP produced 11,478 tonnes of rare earth oxides (REO) in concentrate in Q4, up from 9,257 tonnes the previous year. For the full year, production reached 45,455 tonnes, marking a 9% annual increase. Notably, neodymium-praseodymium (NdPr) oxide output surged to 413 tonnes in Q4 and 1,294 tonnes for 2024, up from just 200 tonnes in 2023. MP also boosted production of cerium chloride, lanthanum carbonate, and SEG+ (mixed heavy rare earth oxides).

Sales and Revenue Growth Offset by Deepening Losses

Fourth-quarter sales included 7,803 tonnes of REO in concentrate and 468 tonnes of NdPr oxide, contributing to a 48% year-on-year revenue increase to $61 million. MP now supplies NdPr to top global automakers and the US Department of Defense. However, full-year revenue fell to $203.9 million (from $253.45 million in 2023) due to lower rare earth prices and reduced REO sales volumes amid the ramp-up of MP’s own separation facility.

Despite these achievements, net loss widened to $22.3 million in Q4 and $65.4 million for 2024. The company attributed losses to increased production costs, new interest payments, lower interest income, and higher depreciation linked to new capital investments.

Downstream Expansion and Magnet Manufacturing on the Horizon

MP continues to strengthen its downstream capabilities, expanding at its Independence magnetics factory in Texas. In 2023, it started commercial NdPr metal production and has begun trial production of automotive-grade magnets. The company targets first magnet deliveries by late 2025 and plans to commence large-scale sintered NdFeB magnet production later this year.

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.

Lynas Reports Decline in Rare Earth Production for FY2023-24

Lynas

Australian rare earth producer Lynas has reported a significant drop in rare earth oxide output and revenue for the fiscal year ending June 2024. The decline was attributed to lower rare earth prices and a six-week shutdown at its Malaysian processing facility during November and December 2023.

Production Decreases Amid Plant Shutdown

Lynas produced 10,908 tonnes of rare earth oxides (REO) in FY2023-24, representing a 35% decline from 16,780 tonnes the previous year. The output of praseodymium-neodymium oxide (PrNd), a key material used in magnets, also dropped by 8% to 5,655 tonnes. The shutdown, aimed at expanding the facility's PrNd separation capacity, contributed to reduced production, with total REO output falling to 1,566 tonnes during the October-December quarter, down from 4,457 tonnes in the same period the previous year.

Revenue and Profit Drop

Lynas’ sales volumes also took a hit, with 12,158 tonnes of REO sold in FY2023-24, a decrease of 24% from the prior year. Revenue fell by 37% to A$463.3 million, while net profit plummeted by 72% to A$84.5 million. The drop in average sales prices, which fell by 17% to A$38.10 per kilogram, played a significant role in the financial decline.

Despite these challenges, Lynas managed to reduce total costs by 17%, focusing on improving efficiency across its rare earth operations. The company invested A$579.3 million in capital and mine development projects during the fiscal year, including the expansion of the Mount Weld project and the construction of the Kalgoorlie rare earth processing facility.

Lynas continues to expand its Mount Weld rare earth project to feed both its Malaysian processing plant and the new Kalgoorlie facility. The Mount Weld project has seen significant growth, with its total rare earth oxide (TREO) resources increasing by 46% since 2018. The project’s ore reserves also rose by 63% to 32 million tonnes in 2024.

The Kalgoorlie facility began producing mixed rare earth carbonate (MREC) in the April-June 2024 quarter, and the first shipment has already been dispatched to the Malaysian plant. The continued expansion of both facilities is expected to meet rising market demand for rare earth materials.

Baogang to Boost Rare Earth Concentrate Output Amid Growing Demand

Baogang

China’s Leading Steelmaker Targets 390,000t Rare Earth Output in 2025

Chinese steel giant Baogang Group plans to increase its rare earth concentrate output in 2025 to meet surging downstream demand. The company will raise its output to 390,000 tonnes, equivalent to 195,000 tonnes of 50% rare earth oxide (REO) content. This would mark a steady increase from 370,000 tonnes in 2024 and 320,000 tonnes in 2023.

Rare Earth Demand Drives Quota Expectations

Market participants expect China to raise its rare earth mining quotas by 8–10% in 2025. Growth in magnet production and other downstream applications has continued to drive demand for REO. Baogang operates the Bayan Obo mine, the world’s largest rare earth site, which holds 35 million tonnes of REO reserves. This mine represents 81% of China’s total rare earth resources.

Baogang supplies all of its rare earth concentrate to Northern Rare Earth (NRE), China’s largest light rare earth producer. NRE’s mining quota rose to 188,650 tonnes in 2024, accounting for 75% of the nation’s total light rare earth quota.

Revenues Under Pressure Despite Output Growth

Baogang earned ¥9.1 billion ($1.25 billion) from rare earth concentrate sales in 2023, making up nearly 13% of its total revenues. While 2024 revenue figures have yet to be released, NRE expects its 2024 net profits to fall sharply to ¥950 million–¥1.08 billion, down more than 54% year-on-year.

The decline stems from a combination of factors, including weak global economic conditions, excess supply, rising recycling capacity, and sluggish downstream demand. Competition has intensified in application markets, putting further pressure on rare earth prices and margins.

Shenghe Resources Acquires 100% Stake in Peak Rare Earth for Overseas Expansion

Peak Rare Earth

Shenghe Resources completed a strategic Shenghe Peak Rare Earth acquisition worth A$158 million ($729.86 million) to secure complete ownership of the Australian mining company and its Tanzanian assets. The Chinese rare earth producer's subsidiary Ganzhou Chenguang executed the purchase to accelerate overseas rare earth resource development beyond China's domestic market. This Shenghe Peak Rare Earth acquisition builds upon Shenghe's existing 19.9% shareholding established in early 2022 and strengthens China's global rare earth supply chain control.

Ngualla Project Anchors Tanzania Rare Earth Strategy

The Ngualla project represents the centerpiece of the Shenghe Peak Rare Earth acquisition, featuring 4.61 million tonnes of rare earth oxide (REO) resources and 887,000 tonnes of REO reserves. Peak Rare Earth holds an 84% stake in the Tanzanian project, with the government retaining the remaining ownership share. Meanwhile, the project maintains an impressive average grade of 4.8% and praseodymium-neodymium oxide content of 21.26%.

Construction completion and operational startup are scheduled for early 2026, with initial production targeting 18,000 tonnes REO of rare earth concentrate annually. This output will yield approximately 4,000 tonnes of praseodymium-neodymium oxide, critical materials for permanent magnet manufacturing. Therefore, the Ngualla project will significantly boost Shenghe's production capacity for high-value magnetic rare earth elements.

Heavy Mineral Sands Portfolio Expands Through Strategic Acquisitions

Shenghe diversified its Tanzanian operations through the Fungoni project, which commenced heavy mineral sands production in late 2024. The first production line achieved operational status, with additional lines expected online before September to reach 100,000 tonnes per year total capacity. As a result, Shenghe secured both rare earth and heavy mineral sands resources within Tanzania's mineral-rich regions.

The company acquired complete ownership of Strandline Resources UK Limited (SRUL) in May 2024, gaining control of the Fungoni project's operating subsidiary Tanzanian Nyati Mineral Sands. Furthermore, Shenghe purchased a 65% stake in Jiacheng Mining (Shanghai) and 100% of African Resources Company, adding 27 million tonnes of heavy mineral sands resources. However, these acquisitions require integration with existing operations to maximize synergies across the portfolio.

Shenghe's financial performance reflected these strategic investments, with revenues reaching 2.99 billion yuan ($415 million) in the first quarter, representing 3.66% year-over-year growth. Net profit surged to 168.22 million yuan from a previous year loss of 215.57 million yuan. Consequently, rising rare earth prices, tighter spot supplies, and increased sales volumes drove this remarkable financial turnaround for the expanding company.

The Metalnomist Commentary

Shenghe's aggressive overseas acquisition strategy demonstrates China's determination to secure critical rare earth supply chains beyond domestic borders, particularly in Africa's mineral-rich regions. The Peak Rare Earth acquisition provides strategic access to high-grade praseodymium-neodymium resources essential for permanent magnet production, while the Tanzanian portfolio diversification reduces supply concentration risks through geographic and commodity expansion.

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.

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.

Shenghe Resources Acquires Significant Interest in Ngualla Rare Earth Project

Chinese rare earth producer Shenghe Resources is set to acquire an additional 50% interest in the Tanzanian rare earth mining company Ngualla Group UK Limited (NGUK), aiming to further develop the Ngualla project in Tanzania. This acquisition, valued at A$96 million (approximately $63.38 million), will enhance Shenghe's cooperation with Australian mining company Peak Rare Earth (PRE), which currently owns NGUK and holds an 84% stake in the Ngualla project.

This strategic move will significantly increase Shenghe's equity in the Ngualla project, accelerating its development and anticipated start-up. Upon the project's commencement of commercial production, Shenghe will be entitled to 55% of net profits or losses after taxes within the first five years, due to its technical expertise and financial contributions.

Shenghe had previously acquired a 19.9% stake in PRE in early 2022, becoming its largest shareholder. In August 2023, Shenghe and PRE signed a binding offtake agreement, securing Shenghe's access to 100% of the rare earth concentrate or at least 50% of intermediate and final rare earth products from Ngualla.

Construction of the Ngualla project began at the end of May, with completion expected by early 2026. The project is designed to produce 37,200 tons per year of rare earth oxide equivalent from 800,000 tons of processed rare earth ores annually. The Ngualla site boasts rare earth resources of 4.61 million tons of rare earth oxide (REO) and reserves of 887,000 tons of REO, with an average grade of 4.8% and a praseodymium-neodymium oxide content of 21.26%.

Shenghe has been actively expanding its global resource base to enhance its supply chains and profitability. The company recently acquired an 18.2% stake in Australian rare earth exploration firm Vital Metal, which operates the Nechalacho bastnaesite mine in Canada and the Wigu Hill deposit in Tanzania. Additionally, Shenghe's holding company, Vietnam Rare Earth, has reached a preliminary agreement with Australian developer Blackstone Minerals to establish a fully-integrated rare earth value chain in Vietnam.

China’s Shenghe Resources Acquires Jiahua Plants to Boost Rare Earth Production Capacity

In a strategic move to enhance its market presence, Shenghe Resources, a leading Chinese rare earth producer, announced its acquisition of significant stakes in Jiangyin Jiahua and Zibo Jiahua, two major rare earth separation plants. The acquisition, made through Shenghe’s wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials, is expected to bolster Shenghe's production capacity of rare earth oxides (REO) and improve its competitiveness in the global market.

Ganzhou Chenguang will purchase an 86 percent stake in Jiangyin Jiahua for 182.71 million yuan ($25.61 million) and a 95 percent stake in Zibo Jiahua for 29.38 million yuan ($4.11 million) from Toronto-based Neo Performance Materials. Following the transaction, Ganzhou Chenguang will fully own Zibo Jiahua after acquiring the remaining 5 percent stake from Zibo Shijia Industrial and Trading.

These acquisitions will significantly increase Shenghe Resources’ rare earth separation output. Jiangyin Jiahua, based in Jiangsu, specializes in the production of high-purity rare earth oxide and co-sediment products, with a current separation capacity of 3,800 tons per year of REO. Meanwhile, Zibo Jiahua, located in Shandong, boasts an output capacity of 5,500 tons per year for bastnaesite rare earth ores. Zibo Jiahua recently halted its light rare earth separation operations to optimize capital return, reduce earnings volatility, and mitigate concentration risk within China.

Furthermore, Zibo Jiahua has invested 500 million yuan to construct an 8,000 tons per year plant for producing high-performance rare earth catalytic materials used in exhaust catalysts to reduce emissions from internal combustion engines. If this plant reaches full operational capacity, Zibo Jiahua will become the largest producer of catalytic materials in China and globally, commanding 30-35 percent of the world market.

Shenghe Resources has also been actively pursuing global expansion to secure resources and enhance its supply chain resilience. The company recently announced plans to acquire an additional 50 percent interest in the Tanzanian rare earth mining company Ngualla Group UK Limited, in partnership with Australian firm Peak Rare Earths. Shenghe has also expanded its influence in Australia, acquiring an 18.2 percent stake in Vital Metal, an Australian rare earth exploration firm, and has reached a preliminary agreement with Blackstone Minerals to build an integrated rare earth value chain in Vietnam.

Despite these expansions, Shenghe Resources has forecasted a net loss of 48-72 million yuan in the first half of 2024, attributing the downturn to declining prices of rare earth and zirconium-titanium products, alongside increased costs of raw materials such as imported ore concentrates.

China’s CREG Discovers Major Rare Earth Deposit in Sichuan

China’s CREG

China Rare Earth Group (CREG), the country’s largest state-owned rare earth enterprise, has announced the discovery of a significant rare earth deposit at the Maoniuping mine in Mianning county, Sichuan province. The site contains an estimated 4.96 million tonnes of rare earth oxide (REO), making it one of China’s largest deposits of light rare earth elements.

The Maoniuping mine is owned by Sichuan JCC Rare Earth, a domestic producer of rare earth materials. CREG became the largest shareholder of the company in January 2023 after acquiring a 51% stake from Jiangxi Copper, a non-ferrous metals producer. The remaining stakes are held by investment firms Sichuan Shuyu Mining Investment and Mianning Investment Development.

Strategic Importance of Maoniuping and Global Demand

Maoniuping is China’s second-largest light rare earth site, with a target production capacity of 30,000 tonnes of REO bastnaesite concentrates. The discovery is expected to contribute significantly to China’s rare earth supply, which is crucial for high-performance permanent magnets used in various advanced technologies. Market projections suggest that global consumption of these magnets could grow from 102,500 tonnes in 2023 to 227,100 tonnes by 2028, driven by a compound annual growth rate of 17.2%.

However, CREG reported a challenging first half of 2024, with a 52.77% year-on-year drop in revenue, amounting to 1.15 billion yuan ($164 million), and a net loss of 244 million yuan due to declining rare earth prices and large inventories purchased at higher prices.

Looking ahead, CREG is also investing in expanding rare earth separation projects, with a new facility in Fujian province expected to start operations by the end of 2025.

Lindian Starts Malawi REE Project Construction

Lindian Resources

Kangankunde Rare Earth Project Breaks Ground in Malawi

Lindian Resources, an Australian mining exploration company, has officially launched site construction at its Kangankunde Rare Earths Project in Malawi. The company initiated civil and infrastructure works, building on the 5km access road project started in February 2025.

Located 90km north of Blantyre, the Kangankunde site features high-grade rare earth mineralization, primarily monazite-based ore. The project boasts 23.7 million metric tonnes of ore at an average grade of 2.9% total rare earth oxide (TREO).

Offtake Agreement and Timeline Support Fast Development

In December 2024, Lindian secured a $50 million offtake and non-bidding funding package with US-based Gerald Group for Stage 1. The agreement accelerates the timeline for construction, reducing financial risk and improving project visibility for 2026 production.

The Kangankunde project is fully permitted and has a planned production capacity of 15,323 tonnes of REO concentrate per year. Lindian is targeting first output by Q1 2026, with operating expenditure estimated at just $2.92/kg REO FOB, making it one of the most competitive globally.

Cost Competitiveness Positions Kangankunde as Global Contender

Kangankunde’s low-cost structure and strong funding support enhance its global positioning in the critical rare earths market. As demand rises for REEs in EVs, wind turbines, and electronics, Kangankunde’s strategic value continues to grow.

The Metalnomist Commentary

Lindian’s Kangankunde launch is timely, as nations race to diversify rare earth supply chains beyond China. Its low-cost model and US offtake support signal Malawi’s emergence as a new frontier in critical mineral development.

MP Materials Ramps Up NdPr Production in Q1 Amid Magnetics Push

MP Materials

Record neodymium-praseodymium output reflects U.S. rare earth momentum

MP Materials NdPr production ramp-up in the first quarter of 2025 underscores the company’s role in reshoring rare earths for the U.S. market. MP achieved record neodymium-praseodymium (NdPr) oxide output of 563 metric tons, driven by continued process optimization at its Mountain Pass facility in California.

Sales volume grows, magnetics business gains traction

MP sold 464 tonnes of NdPr oxide in Q1 at an average price of $52/kg, based on lagged market pricing. Overall rare earth oxide (REO) production totaled 12,213 tonnes, with 6,264 tonnes sold at $4,808/tonne. The company also halted REO concentrate shipments to China, favoring domestic stockpiling to support its downstream expansion. Revenue rose 25% year-on-year to $60.8 million, including $5.2 million from its growing magnetics division.

Magnet strategy aligned with GM partnership, despite near-term loss

MP began magnet validation with General Motors and anticipates launching commercial magnet production by year-end. These efforts support U.S. supply chain resilience for electric vehicles and defense applications. Despite the operational momentum, MP posted a $22.6 million net loss for the quarter, compared to a $16.5 million profit a year ago—reflecting high investment in downstream integration.

The Metalnomist Commentary

MP’s NdPr production surge and magnetics progress reinforce its central role in U.S. rare earth independence. While short-term losses reflect heavy reinvestment, the long-term strategy positions MP as a cornerstone of the Western rare earths-to-magnets value chain.

Surging Demand for NdFeB Magnets Driven by EVs and Renewables

CSRE

The demand for high-performance neodymium-iron-boron (NdFeB) magnets is expected to surge, driven by key applications such as electric vehicles (EVs), wind turbines, and energy-saving technologies. According to Zhang Anwen, counsellor at the Chinese Society of Rare Earths (CSRE), global consumption of NdFeB magnets is projected to reach 400,000 tons annually by 2030, a significant rise from 10,000 tons in 2023. The EV industry alone accounts for 30% of global magnet demand, followed by inverter air conditioners and industrial robots, both at 16%, and wind turbines at 12%.

A Rise in China’s Production

China’s magnet production has seen remarkable growth in recent years. In 2023, China produced 270,000 tons of rough NdFeB magnetic materials, an 18% increase compared to the previous year, and nearly double the 140,000 tons produced in 2025. The production of sintered NdFeB magnets alone climbed to 255,200 tons in 2023, further solidifying China’s dominance in the global magnet market. The country's output of samarium-cobalt magnets also rose to 3,723 tons in 2023, continuing a growth trend in the production of rare earth magnetic materials.

Key Applications Fueling Demand Growth

The automotive sector, particularly EVs, remains the largest consumer of NdFeB magnets. The demand for NdFeB magnets in China’s automobile industry alone reached 36,200 tons in 2023. The electronic power steering (EPS) system in the global market also contributed significantly, with an estimated 12,000 tons used. Additionally, China's production of industrial robots has driven up magnet consumption, as the country accounted for 72% of global robot production in 2023. The elevator and inverter air conditioner sectors also show robust growth, with magnet consumption in these areas increasing steadily over the years.

China's rare earth smelting and separation output reached 337,300 tons of rare earth oxide (REO) in 2023, a massive leap from 96,900 tons in 2010, driven by both plentiful feedstock supplies and the growing demand for magnets. With these figures in mind, the future of NdFeB magnets looks bright, particularly as the world continues its transition to cleaner energy and advanced technologies.