Xiamen Tungsten to Construct High-Performance Magnet Plant in Inner Mongolia

Xiamen Tungsten, a major state-owned Chinese metals producer, has announced plans to build a high-performance neodymium-iron-boron (NdFeB) magnet manufacturing plant in Baotou, Inner Mongolia. The plant is part of a joint venture with its wholly-owned subsidiary, Fujian Golden Dragon Rare Earth, and will operate under the name Golden Dragon Rare Earth (Baotou). The facility, representing a total investment of 462.22 million yuan (approximately $65 million), is set to begin operations in the first half of 2026 and will have an initial production capacity of 5,000 tons per year.

This strategic move underscores Xiamen Tungsten's commitment to expanding its presence in the high-performance magnet sector, which is crucial for various advanced technologies, including electric vehicles and renewable energy systems. The company's decision to establish the plant in Baotou is likely influenced by the city's abundant rare earth resources, which make it a key hub for China’s rare earth industry.

However, Xiamen Tungsten has faced some financial challenges in its rare earth division this year. In the first half of 2024, the company reported a year-on-year revenue decline of 8.37%, totaling 17.16 billion yuan. Despite this, the company's overall profit rose by 28.29% to 1.01 billion yuan, largely due to cost-cutting measures and efficiency improvements in other sectors.

The rare earths division, in particular, saw revenues fall by 26.66% in the first quarter to 912 million yuan, with profits plummeting by 64.79% to 40 million yuan. This decline is attributed to the company’s consolidation with China Rare Earth Group (CREG), the nation’s largest state-owned rare earths firm. Since late 2023, Xiamen Tungsten’s subsidiaries, Longyan Rare Earth and Golden Dragon Rare Earth, have been integrated into CREG, resulting in Xiamen Tungsten no longer being the controlling shareholder. The consolidation, coupled with falling rare earth prices and intense market competition, has negatively impacted the profitability of Xiamen Tungsten’s rare earth processing operations.

The new venture with Fujian Golden Dragon Rare Earth is seen as an effort to revitalize the company's position in the rare earths market and to leverage the growth potential in high-performance NdFeB magnets. CREG and Xiamen Tungsten have also created another joint venture, China Rare Earth Xiamen Tungsten (Fujian) Rare Earth Mining, where CREG holds a 51% stake, leaving Xiamen Tungsten with 49%.

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.

Chifeng Gold Laos Rare Earth Output Plan Targets Medium and Heavy Rare Earth Growth

Chifeng Gold

Chifeng Gold Laos rare earth output plans are moving into a faster ramp-up phase as the Chinese diversified mining firm targets higher production from its Mengkang mine this year. The company plans to reach designed output capacity of 3,675t of mixed rare earth oxide at the Laos site.

The Chifeng Gold Laos rare earth output strategy is focused on meeting rising demand from upstream oxide plants. The plan also strengthens China-linked access to medium and heavy rare earth resources outside China’s domestic mining base.

The company produced 998t of rare earth ores at Mengkang in 2025, with sales of 853t and inventories of 145t. The mine only started operating in the third quarter of 2025, meaning 2026 will be an important test of its ramp-up capability.

Chifeng Gold also plans to build a 3,000 t/yr rare earth separation plant in Savannakhet province with Xiamen Tungsten. This would move the Laos platform beyond mining and into early-stage processing, improving value capture and supply-chain control.

Mengkang Ramp-Up Strengthens Medium and Heavy Rare Earth Supply

The Mengkang rare earth project is strategically important because it contains medium and heavy rare earth oxides. These materials remain among the most sensitive parts of the rare earth supply chain because they are essential for high-performance magnets, defense systems, electric vehicles, robotics, wind turbines and advanced electronics.

Chifeng Gold had total proven rare earth resource reserves of 60,000t by the end of 2025. The Mengkang site accounts for 25,500t of medium and heavy rare earth oxide resources, with an average grade of 0.025%.

Some market participants expect the Mengkang project to meet 8-10% of global demand for medium and heavy rare earths once fully operational. If achieved, that would give Laos a more important role in global rare earth supply and strengthen Chifeng Gold’s position in a high-value segment.

Chifeng Gold also holds the Saipan rare earth mining site in Laos. Saipan has proven resources of 32,000t of medium and heavy rare earth oxide, with an average grade of 0.045%.

The presence of both Mengkang and Saipan gives Chifeng Gold a broader Laos rare earth platform. This matters because medium and heavy rare earth supply is difficult to expand quickly, and new projects face technical, environmental and permitting challenges.

The Chifeng Gold Laos rare earth output plan therefore comes at a sensitive time. Global consumers are looking for supply diversification, while Chinese companies are also trying to secure more overseas resources to support oxide separation, metals production and magnet manufacturing.

Xiamen Tungsten Partnership Links Laos Ore to Separation Capacity

Chifeng Gold’s partnership with Xiamen Tungsten gives the Laos rare earth strategy more downstream depth. The two companies signed an agreement in September 2022 to establish Chijin Xiamen Tungsten, a joint venture focused on developing rare earth minerals in Laos.

The joint venture has registered capital of 60mn yuan, or about $8.79mn. Chifeng Gold holds 51%, while Xiamen Tungsten holds 49%.

Chijin Xiamen Tungsten completed its acquisition of the Mengkang project in March 2024 and obtained mining rights from the Laos government in March 2025. This sequence shows that the project has moved from acquisition into operational development within a relatively short period.

Under the partnership, Xiamen Tungsten and its subsidiaries receive priority access to rare earth minerals in Laos. Chifeng Gold will support the joint venture’s registration, launch and policy coordination in Laos.

This arrangement is commercially important because Xiamen Tungsten brings downstream rare earth processing and metals experience. Chifeng Gold brings resource ownership and project development. Together, they can connect mining, separation and downstream supply more effectively.

The planned 3,000 t/yr separation plant in Savannakhet would further strengthen that connection. If delivered, the plant would reduce dependence on exporting raw or semi-processed material and allow more value to remain in the regional processing chain.

Chifeng Gold is also active in other metals. The company holds 583t of gold resources, 590,000t of copper resources, 560,000t of zinc and lead resources, and 80,000t of molybdenum resources.

Its cathode copper output rose by 9.07% on the year to 6,754t in 2025, while sales increased by 9.5% to 6,869t. Copper concentrate output more than doubled to 3,160t, with sales rising to 3,122t.

However, performance across other metals was mixed. Lead concentrate output fell by 9% to 3,680t, while molybdenum concentrate production slipped by 1.6% to 675t.

This broader metals base gives Chifeng Gold diversification, but the rare earth strategy is likely to receive more attention because of its strategic value. Medium and heavy rare earths carry stronger supply-chain importance than most conventional base metal outputs.

The Metalnomist Commentary

Chifeng Gold’s Laos rare earth push shows how Chinese companies are building overseas control in medium and heavy rare earths before supply pressure intensifies. The key issue is whether Laos can move from ore production into reliable separation capacity without becoming only another upstream resource base.

Xianglu Expands Tungsten Wire Production in China

Tungsten Wire

Surge in Tungsten Wire Output

China’s Xianglu Tungsten has significantly expanded its production of super-fine tungsten wire at its Chaozhou facility in Guangdong province. The plant is now producing 500mn meters of wire per month, targeting an annual capacity of 30bn meters that was first outlined in September 2023. This rapid scale-up underscores Xianglu’s growing role as a leading supplier of downstream tungsten products.

The expansion has already impacted the company’s financial results. Revenues for January–March rose 4.2% year on year to 481mn yuan ($66.9mn). More notably, revenue from the tungsten wire segment surged sevenfold, though the company did not disclose the exact figure. Demand is being driven by the photovoltaic sector, where fine tungsten wire is used as a cutting tool for silicon wafer slicing.

Market Impact and Price Influence

Tungsten wires totaling 100mn meters typically consume about 4t of tungsten concentrate, highlighting Xianglu’s role as a major consumer of feedstock. Alongside peers Xiamen Tungsten and Zhangyuan Tungsten, Xianglu’s bi-monthly bidding prices significantly influence spot tungsten markets. Collectively, term contracts from these firms account for 60–70% of China’s tungsten feedstock demand, according to industry estimates.

In June, Xianglu raised its bid prices to Yn171,000/t for 50% wolframite concentrate and Yn251,000/t for APT, reflecting increases of Yn8,500/t and Yn9,500/t respectively. Xiamen Tungsten also lifted APT bids to Yn250,000/t, reinforcing an upward trend in feedstock prices. These price moves suggest sustained strength in demand, even as downstream industries navigate broader economic pressures.

The Metalnomist Commentary

Xianglu’s tungsten wire expansion highlights the intersection of renewable energy growth and raw material demand. As photovoltaic installations surge, tungsten’s strategic role is intensifying. With pricing power concentrated in a few Chinese firms, global buyers remain highly exposed to policy, energy, and cost dynamics within China’s tungsten industry.

Chinese Tungsten Prices Expected to Stabilize Amid Term Bids and Offers

Chinese Tungsten

China’s spot tungsten prices are forecasted to remain stable in the coming week following the announcement of term bids and offers for the second half of December by key producers and consumers. Firm concentrate costs have counteracted soft downstream demand, keeping price fluctuations minimal over the past month.

As of December 19, 65% grade wolframite was priced at 142,500-143,500 CNY/t ($19,521-19,658/t) ex-works, reflecting only a 500 CNY/t dip from the previous month. Similarly, prices for 88.5% grade ammonium paratungstate (APT) dropped by 1,000 CNY/t to 209,500-210,500 CNY/t ex-works.

Key Players Maintain Stability

• Xiamen Tungsten, one of the leading tungsten consumers, kept its APT bid price steady at 209,500 CNY/t, unchanged from earlier December levels.

• Zhangyuan Tungsten lowered its second-half December APT bid price slightly to 209,500 CNY/t, down 500 CNY/t from the first half of December. The company also reduced its bid price for 55% grade tungsten concentrate to 140,000 CNY/t, a 500 CNY/t decline.

• Jiangxi Tungsten, a prominent tungsten producer, maintained its 65% grade wolframite concentrate offer price at 142,500 CNY/t, consistent with early December levels.

Contract Commitments Drive Market Trends

Long-term contracts remain pivotal in stabilizing tungsten prices, with term commitments accounting for 60-70% of total deals in the market. Spot suppliers often adjust their pricing strategies to align with these term bids and offers.

As the year ends, sellers of tungsten concentrate and APT have shown reluctance to lower prices, anticipating restocking demand ahead of China’s Lunar New Year holiday in late February.

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.

China's XTC Reports Strong CAM Sales Growth in First Half of 2024

XTC New Energy Materials

Chinese lithium-ion battery cathode active material (CAM) manufacturer XTC New Energy Materials (Xiamen) reported a significant increase in sales for the first half of 2024. The firm’s growth was driven by rising demand from downstream industries, reflecting the broader surge in demand for electric vehicle batteries and energy storage solutions.

Impressive Sales Growth

XTC New Energy's sales of CAM, including lithium cobalt oxide (LCO) and lithium nickel-cobalt-manganese oxide (NCM), soared by 67% year-on-year, reaching 44,740 tonnes from January to June. The sales included 18,401 tonnes of LCO, up 30%, and 26,338 tonnes of NCM, a remarkable 109% increase. The surge in NCM sales reflects the growing demand for high-performance battery materials in the global market.

Expanding Production and International Presence

XTC New Energy, once a division of Xiamen Tungsten (XTC), has been operating independently since 2016, focusing on the research, development, production, and sale of CAM for lithium-ion batteries. The company is actively expanding its production capacity. In September 2023, XTC unveiled plans to build a 40,000 t/yr NCM plant in France in partnership with France-based Orano CAM, aiming to strengthen its international presence.

In addition, XTC New Energy is building a new factory in Ya’an, Sichuan province, to produce lithium iron phosphate (LFP), with a planned annual capacity of 100,000 tonnes. The first phase of the plant, with a capacity of 20,000 tonnes, began trial production earlier this year.

XTC New Energy has established partnerships with leading global and domestic battery manufacturers, including ATL, Samsung SDI, Murata, LGC, Sunwoda, Zhuhai Guanyu, and BYD. The company’s CAM products are widely used in middle- and high-end electronics and power lithium batteries. XTC also collaborates with power battery producers such as CALB, Panasonic, BYD, CATL, Sunwoda Electronic, and Gotion High-tech, further solidifying its role in the global battery supply chain.

China Rare Earth Mining Regulations Tighten as Beijing Targets Illegal Supply

China Rare Earth Mining

China rare earth mining regulations are set to become more detailed as Beijing moves to strengthen control over mining, smelting, recycling and trading activity. The industry and information technology ministry has released a draft plan that would impose administrative penalties of up to 5mn yuan for violations.

China rare earth mining regulations already place rare earth production under a state quota system. The latest proposal would clarify penalty levels for companies that mine, smelt, process or trade rare earth materials outside approved channels.

China rare earth mining regulations are strategically important because China remains dominant across global rare earth mining, separation, metal production and magnet supply. Stronger enforcement could tighten unofficial supply and improve state oversight of material flows.

The draft plan released on 28 April sets clearer benchmarks for discretionary penalties. It is aimed at illegal mining, unauthorised smelting, quota breaches, unapproved feedstock use and failures in reporting or traceability.

Quota Enforcement Extends Across Mining, Smelting and Recycling

The draft plan targets enterprises that produce rare earth products beyond state-allocated mining quotas. Companies that conduct smelting without approved quotas would also face fines.

The rules would also cover comprehensive recycling firms that use rare earth ore as feedstock without authorisation. This is important because recycling and secondary processing can become loopholes if ore origin and flow reporting are weak.

Companies that buy, process or sell illegally produced rare earth ore or smelting products would also be penalised. This widens enforcement from producers to the broader trading and processing chain.

Firms that fail to comply with rare earth flow reporting and traceability requirements would face penalties. Companies that refuse or obstruct government supervision and inspection would also be targeted.

This shows that Beijing is not only regulating output volumes. It is building a more detailed control system around material origin, movement, processing rights and end-market access.

Rare earth traceability is becoming more important because these materials are strategic inputs for electric vehicles, wind turbines, robotics, defence systems, aerospace, electronics and high-end manufacturing.

The policy also strengthens China’s ability to monitor both primary and secondary supply. That matters as rare earth scrap recycling grows and as downstream magnet demand continues to increase.

State Control Reinforces China’s Strategic Rare Earth Position

China has tightened control over rare earth resources for more than a decade. The sector has been consolidated under several large state-owned groups to reduce illegal mining, improve environmental oversight and strengthen industrial coordination.

The State Council issued comprehensive rare earth regulations on 29 June 2024 covering mining, smelting, processing, recycling, trading and imports and exports. Those rules took effect on 1 October 2024, but did not define detailed penalty levels.

The latest draft fills that gap. It turns broad regulatory control into a more enforceable administrative system with clearer financial consequences.

China’s two major rare earth groups, Northern Rare Earth and China Rare Earth, now control domestic resources after China Rare Earth consolidated Xiamen Tungsten and Guangdong Rare Earth. Mining, smelting and separation quotas are allocated only to these groups and their affiliates.

Private firms and individuals are prohibited from processing rare earths. This gives Beijing a high level of control over domestic supply channels and industrial output.

From 2025, China also included imported rare earth ore in its quota system. This expanded oversight beyond domestic mining and gave the government more control over imported feedstock entering Chinese smelting and separation plants.

The move is strategically significant. China is treating rare earths as controlled industrial resources rather than ordinary commodities. Production discipline, traceability and export controls are now part of the same policy framework.

For global buyers, tighter regulation could reduce illegal or informal supply flows. It may also increase dependence on approved producers and make rare earth availability more closely tied to Chinese quota and export policy.

The Metalnomist Commentary

China’s rare earth enforcement push shows that Beijing wants full visibility over every stage of the value chain. For western buyers, the risk is clear: rare earth supply is becoming more regulated, more traceable and more politically controlled at the source.

China’s Northern Rare Earth to Build 5,000 t/yr Rare Earth Oxide Plant in Baotou

Northern Rare Earth

Northern Rare Earth (NRE), one of China’s leading light rare earth producers, has announced plans to build a rare earth oxide production plant in Baotou, Inner Mongolia. The project, which will be developed in partnership with Changting Golden Dragon, a subsidiary of Xiamen Tungsten, represents a significant step in expanding China’s rare earth separation and processing capacity.

Rare Earth Oxide Project Details

The 457 million yuan ($62.6 million) investment will establish a 5,000 metric ton per year (t/yr) rare earth oxide production line in Baotou’s Kundulun Economic and Technological Development Zone. NRE will hold a 51% stake, while Changting Golden Dragon will own the remaining 49%.

While specific launch dates remain undisclosed, the project aligns with China’s broader strategy of enhancing domestic rare earth processing capacity to maintain its global dominance in the supply of critical materials, including praseodymium, neodymium, lanthanum, and cerium—key elements used in the neodymium-iron-boron (NdFeB) magnet industry.

NRE has also strengthened its partnership with Golden Dragon by investing 105 million yuan in 2022 to expand its equity in the company. The move secured priority supply agreements for praseodymium-neodymium metal, lanthanum metal, and mischmetal lanthanum-cerium products, reinforcing NRE’s role as a strategic supplier within the rare earth industry chain.

NRE's Financial Performance and Market Challenges

NRE’s latest financial report reflects mixed performance trends amid volatile rare earth prices:

• Q3 2024 Revenue: 8.56 billion yuan, a 1.5% increase year-on-year.

• Q3 2024 Net Profit: 359.92 million yuan, up 11% from 2023.

• January-September 2024 Revenue: 21.55 billion yuan, down 14% year-on-year.

• January-September 2024 Net Profit: 405.32 million yuan, a 71% drop from the previous year.

The decline in profitability stems from weaker rare earth prices, driven by sufficient supply and lower-than-expected demand growth. Praseodymium-neodymium (Pr-Nd) metal—one of the most crucial rare earth elements for EV motors, wind turbines, and industrial magnets—saw its average price drop by 28% to 477 yuan/kg ex-works in the first nine months of 2024.

Despite softening rare earth prices, NRE has benefited from strong restocking activity by magnet manufacturers and tighter rare earth mining quotas, which have helped stabilize the Pr-Nd market in recent months.

Conclusion

NRE’s new rare earth oxide plant in Baotou strengthens China’s position as a dominant force in the global rare earth supply chain. With China tightening rare earth mining quotas and demand from the EV and renewable energy sectors expected to rise, NRE’s strategic partnerships and production expansion could bolster its long-term market position. However, price volatility and uncertain global demand remain key challenges for the rare earth industry in 2025.