Xiaomi Humanoid Robots Signal New Rare Earth Demand From Factory Automation

Xiaomi Humanoid Robots

Xiaomi humanoid robots are moving from development into industrial trials as the Chinese electronics and EV manufacturer tests self-made robots inside its automotive factory. The deployment marks an early but important step toward large-scale use of humanoid robotics in manufacturing.

Xiaomi founder and chief executive Lei Jun said the robots are handling tasks such as loading self-tapping nuts and moving material bins. The systems use multimodal perception and reinforcement learning, while the company continues to improve reliability and test more production stations.

Xiaomi humanoid robots matter because the company has become one of China’s fastest-growing EV makers. Since launching automotive products in March 2024, Xiaomi’s EV deliveries exceeded 410,000 units by the end of 2025, making the auto business a major growth driver for the group.

Factory Automation Could Add Demand for Motors, Sensors and Actuators

Humanoid robots could become a new source of demand for advanced components used in industrial automation. Motors, actuators, sensors, control systems, gears, bearings, batteries, wiring, and lightweight structural materials all become more important as production scales.

Xiaomi plans to deploy large numbers of humanoid robots in its factories within the next five years. The goal is to support production and reduce reliance on labour-intensive tasks. However, Lei Jun also noted that near-perfect reliability remains difficult to achieve on production lines.

This reliability challenge is critical. Automotive factories require stable cycle times, repeatable accuracy, safety compliance, and very low failure rates. Therefore, humanoid robot adoption may scale gradually, starting with repetitive handling tasks before moving into more complex assembly operations.

Rare Earth Permanent Magnets Gain Strategic Exposure

Xiaomi humanoid robots could also increase long-term demand for rare earth permanent magnets. Industry estimates suggest that one humanoid robot can require around 3.5-4kg of rare earth magnets, depending on design and actuator architecture.

This links humanoid robotics directly to praseodymium, neodymium, dysprosium, and terbium supply chains. These rare earths are critical for high-performance permanent magnets used in compact, powerful motors. As robots require precise motion control, magnet performance becomes a key enabling material.

The wider market is also moving quickly. Tesla plans to unveil its third-generation humanoid robot in 2026, while China is positioning itself as a global leader in humanoid robotics. Industry projections suggest China’s humanoid robot output could reach 59mn units by 2050, while companies such as Lens Technology are expanding robot assembly capacity.

The Metalnomist Commentary

Humanoid robotics could become one of the next demand engines for rare earth magnets after EVs, wind power, and industrial motors. The real question is whether magnet supply chains can scale with robotics if factory trials turn into mass deployment.

China's EV Sales Surge in 2024: Metals Demand Skyrockets Amidst Global Market Shifts

China's EV

Government Incentives and Consumer Demand Drive Unprecedented Growth; 2025 Outlook and Market Impacts

Chinese new energy vehicle (NEV) manufacturers experienced unprecedented sales growth in 2024, driven by robust government incentives and escalating consumer adoption. This surge significantly impacts the metals market, particularly for lithium, nickel, cobalt, and rare earth elements, essential for electric vehicle (EV) batteries and motors.

Record-Breaking Sales Across Major Manufacturers

Company reports indicate widespread sales increases throughout the sector. Notably, state-owned Chery reported the highest annual sales growth, surpassing 10 million units in monthly sales for the first time in December. Xiaomi, a mobile phone manufacturer, successfully expanded into the EV market, selling over 135,000 vehicles in 2024, with a target of 300,000 units in 2025 following the launch of its Xiaomi SU7 model on March 28, 2024.

Government Support and Market Projections

The Chinese government’s strategic support has been pivotal to this growth. Incentives, including subsidies of up to 20,000 yuan ($2,751) for consumers trading in old cars for NEVs and additional local subsidies, have fueled consumer demand. Industry estimates suggest continued government support in 2025, with subsidies ranging from 8-11% of the average NEV price.

China's dominance in the global NEV market remains unchallenged, holding a 70% market share from January to November and 76% in October and November. This contrasts sharply with a slowdown in non-Chinese markets due to reduced government support.

Forecasts project China’s NEV sales to reach 13 million units in 2024 and 16 million in 2025. However, the sector faces potential challenges in 2025, including increased geopolitical risks. The rising demand for NEVs directly correlates with increased demand for essential battery metals, indicating that the metals market will see changes based on the success of the NEV market.

China's EV Producers Sustain Sales Growth in 2024

China's EV

Most Chinese electric vehicle (EV) manufacturers managed to maintain sales growth from January through August. However, this growth has been slower compared to the period between January and July, as indicated by recent company reports.

Government Incentives Drive NEV Adoption

The Chinese government continues to support the adoption of new energy vehicles (NEVs) through various incentives. Notably, Beijing's local government is offering a 15,000 yuan ($2,111) subsidy from September to December to encourage residents to replace their old vehicles with NEVs. This move aims to boost the city's NEV sales and support the broader national initiative for cleaner transportation.

Seres, in partnership with Huawei for software support, has reported the highest growth among domestic manufacturers for August and the year-to-date period. Xiaomi, traditionally known for its mobile phones, has also made significant strides, selling over 10,000 NEVs for the third consecutive month in August. This performance suggests that Xiaomi could meet its annual sales target of 100,000 units well ahead of schedule, potentially by November.

Future Market Dynamics

The competitive landscape for Chinese EV manufacturers is expected to remain highly competitive in the upcoming months. Concerns about oversupply and geopolitical restrictions may prompt more Chinese auto manufacturers to explore international markets as they seek to expand their presence beyond domestic borders.

UBTech Humanoid Robot Growth Signals New Rare Earth Magnet Demand

UBTech Humanoid Robot

UBTech humanoid robot growth accelerated sharply in 2025 as the Chinese robotics company expanded deliveries of full-sized embodied intelligent humanoid robots. The company sold 1,079 units during the year, marking a major increase from a very low base in 2024.

The segment generated 820mn yuan, or about $120mn, in annual revenue. That was more than 20 times higher than a year earlier and made humanoid robots UBTech’s largest business segment, accounting for 41.1% of total revenue.

UBTech humanoid robot growth matters for the metals supply chain because humanoid robots use high-performance motors, sensors, actuators, control systems and rare earth permanent magnets. As industrial robot deployments scale, demand could rise for neodymium, praseodymium, dysprosium and terbium.

Industrial Humanoid Robots Move From Demonstration to Early Scale

UBTech said it became the first company globally to achieve thousand-unit-level deliveries of industrial humanoid robots by delivery scale. This suggests that humanoid robots are moving from prototype demonstrations toward early commercial deployment.

Global humanoid robot shipments reached around 18,000 units in 2025, up 508% from a year earlier, according to market research data. The growth reflects rising interest from manufacturers, logistics operators, technology firms and automation users.

China’s robotics market is also gaining momentum as large technology and EV companies enter the sector. Xiaomi and Tesla have both outlined plans to develop humanoid robot production and applications, increasing competitive pressure and accelerating industry investment.

Rare Earth Permanent Magnets Become a Robotics Supply Chain Focus

UBTech humanoid robot growth creates a new demand channel for rare earth permanent magnets. Industry estimates indicate that a single humanoid robot typically requires 3.5–4kg of rare earth magnets.

These magnets are essential for compact, high-torque motors used in robot joints, actuators and motion-control systems. Neodymium and praseodymium provide core magnetic strength, while dysprosium and terbium improve high-temperature performance and stability.

If humanoid robot production scales from thousands to hundreds of thousands of units, the impact on rare earth magnet demand could become material. This would add robotics to existing demand drivers from electric vehicles, wind turbines, industrial motors and consumer electronics.

The Metalnomist Commentary

Humanoid robots are still an early-stage market, but UBTech’s growth shows that physical AI could become a real materials demand story. The strategic winners will be companies that control rare earth oxides, metal conversion, magnet manufacturing and motor supply chains.

Taiwan’s TSMC Reports Robust Q3 Revenue Growth Driven by AI and Smartphone Demand

TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) reported a stellar third-quarter performance for 2024, as surging demand for artificial intelligence (AI) chips and smartphones propelled its revenue to $23.5 billion. This represents a 13% quarter-on-quarter growth from $20.8 billion and an impressive 36% increase year-on-year from $17.3 billion. The company's results exceeded its prior guidance of $22.4-$23.2 billion, solidifying its position as a key player in the semiconductor industry.

Advanced Technologies Drive Growth

Demand for TSMC’s cutting-edge technologies underpinned this growth. The company's 3-nanometer (3nm) process technology contributed 20% of Q3 revenues, up from 15% in Q2. Although the contribution from the 5nm process fell slightly to 32% from 35%, the steady performance of 7nm wafers, which accounted for 17% of revenues, indicates consistent demand for mature nodes.

High-performance computing (HPC) remained the largest revenue driver, comprising 51% of total revenue, while smartphones accounted for 34%. The Internet of Things (IoT) contributed 7%, and the automotive sector added 5%.

AI and Smartphones Lead Market Momentum

The rollout of AI applications and the launch of new flagship smartphones, including Apple's iPhone 16, were significant catalysts. According to data from the International Data Corporation (IDC), global mobile phone shipments rose 4% year-on-year in Q3, reaching 316 million units. Growth in Chinese smartphone brands, such as Huawei and Xiaomi, further bolstered this trend.

Future Outlook and Materials Innovation

TSMC projects its Q4 revenue to climb to $26.1-$26.9 billion, driven by sustained demand for AI and smartphones. AI advancements are expected to spur the adoption of compound semiconductors like gallium nitride (GaN) and gallium arsenide (GaAs), materials that are more energy-efficient than traditional silicon. These innovations could redefine energy efficiency standards in semiconductor manufacturing.

TSMC's strong third-quarter performance highlights its dominance in the global semiconductor market and its ability to meet evolving technological demands, reinforcing its role as a critical supplier for the AI and mobile computing revolutions.

Apple Boosts Global Product Sales Despite Weak China iPhone Demand

Apple China

Metal Demand Poised to Remain Strong as Apple Sales Climb

Apple Inc. has increased its overall product sales in the first fiscal quarter, despite facing headwinds in China’s smartphone market. The boost in global performance highlights ongoing strong demand for critical tech hardware and suggests sustained demand for key industrial and minor metals.

Apple Rises on Strong Holiday Demand, iPhone 16 Series Success

Apple reported nearly $98 billion in net product sales from October to December, up from $70 billion in the previous quarter. Although iPhone sales to China fell due to intensifying competition from Huawei, Vivo, and Xiaomi, total iPhone sales still rose to $69.1 billion, driven by the global launch of the iPhone 16 series and strong holiday shopping.

Apple's iPhone 16 saw increased uptake where Apple Intelligence was available, boosting performance outside China. However, Apple Intelligence has not launched in China, impacting its market share there. Despite the regional setback, overall iPhone sales declined less than 1% compared to the same quarter in 2023.

Mac and iPad Sales Grow, Metal Demand Remains Steady

Apple also saw growth in its computer and tablet lines, with Mac sales rising 13% to nearly $9 billion and iPad sales increasing to $8.1 billion. However, wearables and home accessories dropped slightly, totaling $11.5 billion compared to $12 billion the year before.

Given Apple’s reliance on critical raw materials—including cobalt, lithium, rare earths, and base metals such as aluminum, copper, and zinc—this sustained sales momentum is likely to support steady demand across global metal supply chains. As Apple ramps up innovation and new product rollouts, metal producers will closely monitor its trajectory.