DMEGC Magnet Output Falls as Competition and Export Controls Pressure Sales

DMEGC

DMEGC magnet output fell in 2025 as tougher competition and China’s export restrictions on some rare earth permanent magnets weighed on sales. Hengdian Group DMEGC Magnetics produced 221,690t of magnetic materials during the year, down 2.5% from 2024.

DMEGC magnet output declined even as the broader Chinese magnet market benefited from stronger demand in new energy vehicles, smart appliances, data centres and consumer electronics. The company’s magnetic material sales fell by 5.9% to 218,282t, while inventories rose by 22% to 19,074t.

DMEGC magnet output weakness shows that rising end-market demand does not guarantee growth for every producer. Fiercer competition in China and overseas, combined with tighter controls on medium and heavy rare earth magnet exports, created pressure across the company’s magnet business.

China imposed export restrictions in April 2025 on permanent magnets containing seven medium and heavy rare earth elements. These included dysprosium, terbium, yttrium, lutetium, gadolinium, scandium and samarium.

The restrictions affected a sensitive part of the magnet supply chain. Dysprosium and terbium are especially important for high-performance magnets used in electric vehicles, wind turbines, robotics, aerospace systems and defence-related applications.

Magnetic Materials Lag as DMEGC Revenue Rises Elsewhere

DMEGC’s overall business still expanded in 2025 despite weaker magnet volumes. Revenue rose by 22% on the year to 22.6bn yuan, while profit increased by 1.3% to 1.85bn yuan.

The strongest revenue growth came from photovoltaic products. Sales from that segment rose by 29% to 14.3bn yuan, making solar products a major earnings driver for the group.

Revenue from magnetic materials increased by 5% to 4bn yuan, even though output and sales volumes declined. This suggests that pricing, product mix or higher-value material sales partly offset weaker physical shipments.

Lithium battery revenue also increased. Sales rose by 12% to 2.72bn yuan, while component sales climbed by 30% to 995mn yuan.

The result shows DMEGC’s advantage as a diversified materials and energy technology supplier. Weakness in one product line did not prevent group revenue growth, because photovoltaics, batteries and components supported the wider business.

Still, the magnet segment remains strategically important. DMEGC had designed magnetic materials capacity of 300,000 t/yr by the end of 2025, placing it among China’s leading magnetic material producers by sales scale.

The company’s battery and component capacity also reached 23GW and 21GW, respectively, while lithium battery output capacity stood at 8GWh. This gives DMEGC exposure to several electrification markets, including solar, batteries, motors and electronic components.

The inventory increase in magnetic materials deserves attention. Rising inventories during a year of falling sales can signal slower customer offtake, tougher competition or weaker export channels.

Export restrictions may have added to that pressure. When overseas buyers face licensing uncertainty, shipment delays or compliance risk, purchasing patterns can change even if underlying demand remains strong.

This is particularly important for rare earth permanent magnets. Buyers in automotive, robotics, wind power and electronics supply chains require stable delivery, traceability and qualification. Policy disruption can therefore affect procurement decisions quickly.

NEVs, Appliances and Data Centres Support Long-Term Magnet Demand

China’s magnet demand outlook remains positive despite DMEGC’s weaker 2025 volume performance. China produced 1.62mn t of magnetic materials in 2025, accounting for about 80% of global output.

This total included 750,000t of permanent magnetic ferrite, 600,000t of soft magnets and 270,000t of rare earth permanent magnets. The scale confirms China’s dominant role across both low-cost and high-performance magnet supply chains.

New energy vehicles remain one of the strongest demand drivers. China’s automobile output rose by 10% to 34.5mn units in 2025, while NEV production increased by 29% to 16.6mn units.

NEVs consume more magnetic materials because electric drivetrains, sensors, power steering, braking systems, pumps and comfort systems all require motors and magnetic components. As vehicles become more automated, intelligent and comfort-oriented, magnet intensity per vehicle is likely to increase.

Smart home appliances are another major demand source. China’s output of air conditioners, refrigerators and washing machines reached 266.97mn, 109.24mn and 125.17mn units, respectively, in 2025.

These appliances support demand for soft magnets and ferrite materials used in motors, compressors, power electronics and control systems. Energy efficiency standards and inverter technologies can further raise the need for higher-performance magnetic components.

Data centres are becoming a newer growth channel. Global server shipments rose by 1.9% to 16.3mn units in 2025, while AI server shipments increased by 25% to 2.04mn units.

Cooling systems in data centres require fans, motors and magnetic components. As AI infrastructure expands, heat management becomes more important, adding another source of demand for rare earth permanent magnets and soft magnetic materials.

Consumer electronics also supported the market. Global smartphone shipments rose by 2% to 1.25bn units, while personal computer shipments increased by 9.2% to 280mn units.

This broad demand base gives Chinese magnet producers a strong long-term market. However, it also attracts capacity expansion and intensifies competition. Producers must now compete not only on volume, but also on product quality, export compliance, heavy rare earth efficiency and downstream qualification.

The market is therefore entering a more selective phase. Producers with strong customer relationships, stable rare earth supply, advanced magnet technologies and diversified end-market exposure will be better positioned.

DMEGC’s 2025 results reflect that transition. Demand for magnets is rising, but policy controls, competition and inventory pressure can still weaken individual company performance.

The Metalnomist Commentary

DMEGC’s results show that China’s magnet market is growing, but not evenly. The next competitive divide will come from export-control management, high-performance magnet capability and access to reliable rare earth feedstock.

China’s Northern Rare Earth Increases Magnet Production in August

Northern Rare Earth Magnetic Material(NREMM)

China's major producer of light rare earths, Northern Rare Earth (NRE), reported a significant rise in its production of magnetic materials in August. This surge is a direct response to increased demand from key downstream industries, including the new energy vehicle (NEV) and industrial motor sectors. The company's output growth is being driven by technological advancements and upgrades within its subsidiary, Northern Rare Earth Magnetic Material (NREMM).

Technological Advancements Drive Steady Growth

NREMM has seen consistent growth over the past few months, with its magnetic material output projected to exceed 6,000 tons in August. This is a significant increase compared to April, when the output reached a record-breaking 4,000 tons, a 24.9% month-on-month rise in both production and sales.

Moreover, NREMM’s output and sales during the period from January to August increased by 18% year-on-year. This indicates a strong upward trajectory, although specific figures for magnet production and sales for 2023 and 2024 have not been provided.

Aiming for Global Leadership in Magnet Production

NRE has ambitious plans to expand its production capacity. NREMM is targeting an output capacity of 150,000 tons per year for high-performance neodymium-iron-boron alloys by the end of China’s 14th Five-Year Plan (2021-2025). This move will position NRE as a leading global player in the rare earth magnet industry.

In December 2022, NRE formed NREMM by consolidating its four wholly-owned subsidiaries: Baogang Magnetic Materials, Ningbo Zhanhao, Beijing Sanjili, and Anhui Permanent Magnet. This strategic merger is designed to create the world's largest magnet manufacturing plant in terms of production capacity.

Increasing Demand from New Energy Vehicles and Industrial Motors

NRE has highlighted the rapid development in downstream demand as a key factor behind the growth in rare earth magnetic materials. This demand surge is largely driven by the NEV and industrial motor sectors. China's NEV production from January to July totaled 5.914 million units, marking a 29% increase compared to the same period last year. Sales also saw a 31% jump, reaching 5.934 million units during the same timeframe, according to the China Association of Automobile Manufacturers.

Meanwhile, China's industrial motor sector is expected to see its sales revenue rise to 388 billion yuan ($54.67 billion) by the end of 2024, up from 372 billion yuan in 2023 and 329 billion yuan in 2020. These figures reflect the growing importance of rare earth materials in the country's industrial and technological advancements.

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.

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.

China's Huahong to Establish Magnet Plant in Inner Mongolia

Chinese resource recycling manufacturer, Zhejiang Huahong Technology, has announced plans to develop the first phase of a high-performance rare earth magnetic materials plant in Baotou city, located in China's Inner Mongolia region. This initiative marks a significant expansion for Huahong as it strengthens its foothold in the rare earth industry.

Expansion in Baotou

Huahong's subsidiary, Baotou Huahong New Material Technology, will oversee the construction of the first 10,000 t/yr phase of the high-performance rare earth permanent magnets project. This project is situated in the Baotou rare earth high-tech zone and represents a substantial investment of 400 million yuan ($56.31 million). The facility is anticipated to be completed and operational by the end of 2025, though specific details regarding the launch dates and construction schedule for the second phase remain undisclosed.

Strategic Acquisitions and Partnerships

In a strategic move to enhance its presence in the rare earths industry, Huahong approved in December 2023 the acquisition of 100% of Shandong Shuocheng New Material, a magnet manufacturing producer. The acquisition, valued at 90 million yuan, was executed through Huahong's wholly-owned subsidiary, Zhejiang Zhonghang New Material. Shuocheng brings with it an annual output capacity of 5,000 tons of high-performance rare earth magnetic materials.

Furthermore, Huahong's wholly-owned subsidiary, Ji'an Xintai, has partnered with Jiangxi Xinhenghui Venture Capital to form a new company. This venture will focus on recycling, disassembling, and reusing scrapped and outdated electric bicycles, industrial permanent magnet motors, and new energy motors. The collaboration aims to secure a steady supply and stabilize purchase prices of raw materials essential for Ji'an Xintai's comprehensive utilization of rare earth resources.

Enhancing Production Capacities

Ji'an Xintai will hold a 55% stake in the new company, contributing 16.5 million yuan towards the total registered capital, with Xinhenghui providing the remaining 13.5 million yuan. The new venture is expected to bolster Xintai's production capabilities, which currently include an annual output of 10,000 tons of rare earth oxides and 3,000 tons of permanent magnetic materials. Additionally, Xintai has the capacity to process 60,000 tons per year of neodymium-iron-boron recycling materials, further solidifying its position in the rare earth industry.

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.

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.

Sinomag Magnet Output Capacity Expands in Vietnam and Thailand

Sinomag

Vietnamese Ferrite Plant Boosts Sinomag’s Global Footprint

Chinese magnet producer Sinomag has increased its magnet output capacity at its Vietnam facility, expanding wet pressure magnetic tile production from 8,000 t/yr to 10,000 t/yr. This move is part of Sinomag’s broader strategy to scale global production outside China. The company targets 50,000 t/yr by year-end and 60,000 t/yr in the next few years, reinforcing its leadership in ferrite magnet manufacturing.

Thai Soft Magnet Facility Set for 2024 Launch

Meanwhile, Sinomag is preparing to launch its Thailand plant for soft magnetic materials by the end of the year. With an initial 8,000 t/yr capacity, this marks China’s first overseas soft magnet production facility. The company aims to grow this to 20,000 t/yr over the coming years. Sinomag’s soft magnets are primarily used in automobiles, household appliances, and new energy vehicles — especially in power modules and EV charging stations.

Strong Demand Meets Global Headwinds

Sinomag magnet output capacity increases come despite a 7.5% drop in first-quarter profits, driven by global photovoltaic slowdowns and stiff market competition. Nevertheless, first-quarter revenues rose 1.2% year-on-year to 256.5mn yuan ($35.49mn). The impact of Trump-era 145% tariffs on Chinese magnet imports remains minimal, as U.S.-bound shipments account for less than 3% of Sinomag’s exports.

The Metalnomist Commentary

Sinomag’s capacity expansion reflects a strategic pivot toward international production to mitigate geopolitical risk. Vietnam and Thailand now play key roles in diversifying China's critical materials value chain, particularly in magnets essential to clean tech and automotive sectors.

Ramaco rare earth mine breaks ground, reshaping US supply

Rare Earth

Groundbreaking, scale, and 2027 timeline

Ramaco rare earth mine launches with an 11 July groundbreaking in Wyoming. Ramaco said it will be the first US rare earth mine in 70 years. It is also Wyoming’s first new coal mine in over 50 years. Production starts in 2027, with two years of optimization to steady state.

Resource estimates indicate significant scale and magnetic-grade mix. The deposit contains 40% primary magnetic rare earth oxides. Key elements include neodymium, praseodymium, dysprosium, and terbium. Three critical minerals—gallium, scandium, and germanium—are also present. Total contained minerals are estimated at 1.3–1.7 million metric tonnes.

Chemistry, processing, and supply-chain impact

Geology differentiates Brook Mine from other US rare earth projects. Unlike Mountain Pass, the deposit is sediment-hosted, not carbonatite. It shows higher relative concentrations of dysprosium, terbium, and gadolinium. This chemistry favors heavy magnet supply for high-temperature applications. Therefore, the Ramaco rare earth mine targets strategic downstream demand.

Commercialization plans emphasize processing pathways and market access. Ramaco plans a Carbon Ore Rare Earth Project integrating mine and extraction. Meanwhile, domestic sourcing supports defense, EV, and grid manufacturing goals. However, permitting, processing capacity, and offtake terms remain key risks. Investors should track pilot results, recoveries, and waste-handling strategies.

The Metalnomist Commentary

This project could rebalance US magnet supply if recoveries scale as planned. Execution on separation, waste management, and offtake will define economics and credibility.

NioCorp Public Stock Offering Targets Funding for Elk Creek Critical Minerals Project

NioCorp

NioCorp public stock offering plans could raise up to $100mn to advance the Elk Creek critical minerals project in Nebraska. The financing would support one of the most strategically relevant US mineral development projects because Elk Creek targets niobium, scandium, titanium, and potentially magnetic rare earth elements.

The company is offering up to 20mn common shares at $5/share. The offering is expected to close on or around 25 February, subject to customary conditions. If completed, the NioCorp public stock offering would strengthen the company’s balance sheet as it moves the Nebraska project through its next development phase.

Elk Creek is important because the US remains heavily dependent on foreign supply for several specialty materials used in advanced manufacturing, aerospace, defence, energy systems, and high-performance alloys. A domestic source of niobium and scandium would carry strategic value beyond normal mine economics.

Elk Creek Could Support Domestic Niobium and Scandium Supply

The Elk Creek critical minerals project is expected to produce niobium, scandium, and titanium. These materials serve different industrial markets, but all carry strategic relevance for the US manufacturing base.

Niobium is mainly used to strengthen steel and improve performance in high-strength low-alloy applications. Scandium can improve aluminium alloy performance, especially where lightweight Titaniumstrength and weldability matter. Titanium has strong relevance in aerospace, defence, medical, chemical processing, and high-corrosion environments.

NioCorp is also evaluating the potential to produce magnetic rare earth elements. That could increase the project’s strategic value if it proves commercially viable, because rare earth magnets are essential for motors, defence systems, robotics, wind power, and advanced electronics.

Financing Highlights US Critical Minerals Capital Challenge

The NioCorp public stock offering shows how critical minerals projects still depend on patient capital before they can become supply-chain assets. Policy support and strategic demand are important, but mines still need funding for engineering, permitting, construction planning, and commercial development.

The proposed $100mn raise would help advance Elk Creek at a time when the US is trying to reduce dependence on imported critical materials. However, specialty mineral projects face a difficult financing environment because their markets can be smaller, less transparent, and more technically complex than bulk commodities.

For US industry, the key issue is whether projects such as Elk Creek can move from strategic potential to actual production. If NioCorp succeeds, the project could add an important domestic source of niobium, scandium, titanium, and possibly rare earth materials to the North American supply chain.

The Metalnomist Commentary

NioCorp’s offering highlights a central problem in critical minerals policy: strategic materials need commercial capital before they can become strategic supply. Elk Creek’s value will depend not only on geology, but also on financing execution, downstream qualification, and reliable offtake demand.

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.

Atlas Lithium rare earths in Brazil reshape its critical minerals story

Atlas Lithium

Atlas Lithium rare earths in Brazil mark a major strategic shift for the US-listed lithium developer. The company has identified rare earth deposits at its Ipora and Alto do Paranaiba projects, adding ionic clay and sedimentary rock resources to its portfolio. This Atlas Lithium rare earths in Brazil announcement broadens its exposure beyond brine and hard-rock lithium into magnetic and heavy rare earths.

The Ipora project in Goias has emerged as an important ionic clay discovery. Initial drilling shows 2,071ppm total rare earth oxides (Treo), including 775ppm magnetic rare earth oxides, positioning Atlas Lithium rare earths in Brazil within a competitive grade range. As a result, the project stands out for its heavy rare earth oxide recovery rate of 55pc and yttrium recovery at 63pc, both attractive metrics for downstream magnet and electronics supply chains.

Alto do Paranaiba links rare earths with titanium credits

Alto do Paranaiba in Minas Gerais adds a very different style of mineralisation. The project hosts near-surface Treo grades up to 28,870ppm alongside 23.3pc titanium dioxide, pointing to potential by-product titanium value. Therefore Atlas Lithium rare earths in Brazil now span both ionic clays and high-grade sedimentary units, which can diversify processing options and revenue streams.

However, the company still needs to confirm continuity, metallurgy and scalable mine plans at Alto do Paranaiba. Near-surface grades offer potential for lower strip ratios and faster development, but sediment-hosted rare earths require careful flowsheet design. Investors will focus on how Atlas prioritises drilling, pilot testing and sequencing between Ipora and Alto do Paranaiba.

Building a multi-commodity critical minerals platform

Atlas Critical Minerals, the company’s Brazilian subsidiary, now controls more than 218,000 hectares of mineral rights across rare earths, titanium, graphite and uranium. This scale provides optionality for partnerships and off-take, especially as Western buyers seek non-Chinese rare earth sources. Meanwhile, combining Atlas Lithium rare earths in Brazil with its lithium portfolio could position the group as an integrated critical minerals developer rather than a single-commodity play.

As a result, Atlas can align its narrative with supply-chain diversification, energy transition and defence applications. But execution risk remains high, given early-stage status, capital needs and complex permitting in Brazil. Clear timelines, resource updates and metallurgical results will determine whether these discoveries translate into bankable projects.

The Metalnomist Commentary

Atlas is moving quickly to rebrand itself from a pure lithium story into a broader critical minerals platform. The rare earth discoveries are promising, particularly the ionic clay potential at Ipora, but still sit firmly in the exploration risk bucket. For now, these finds strengthen strategic optionality and headline appeal more than near-term cash flow.

Energy Fuels VAC Acquisition Builds Mine-to-Magnet Rare Earth Platform

Vacuumschmelze

Energy Fuels VAC acquisition will create one of the most vertically integrated rare earth supply chains outside China by combining upstream mining and separation with commercial magnet manufacturing. The US rare earths and uranium producer will acquire Germany-based Vacuumschmelze for $1.9bn in cash and stock.

Energy Fuels VAC acquisition gives the company immediate downstream exposure to permanent magnets, including sintered neodymium-iron-boron products, as well as cobalt-iron and nickel-iron soft magnetic materials. VAC serves customers across electrification and industrial markets.

Energy Fuels VAC acquisition also addresses one of the biggest weaknesses in western rare earth strategy. Mining and oxide separation alone do not create a complete magnet supply chain. Rare earth metals, alloys, powders and finished magnets must all be produced and qualified.

The transaction will leave VAC as a wholly owned Energy Fuels subsidiary while maintaining its German headquarters. The structure gives Energy Fuels manufacturing assets across North America, Europe and Asia.

VAC Adds Commercial Magnet Capacity to Upstream Rare Earth Assets

VAC brings established permanent magnet manufacturing capability into Energy Fuels’ portfolio. Its Sumter, South Carolina, facility currently has 2,000 t/yr of permanent magnet capacity.

That site has significant expansion potential. Capacity could eventually rise to as much as 12,000 t/yr, creating a large US manufacturing base for NdFeB magnets.

The strategic value is substantial because permanent magnets sit at the end of a complex rare earth value chain. Neodymium and praseodymium provide the main magnetic properties, while dysprosium and terbium can improve performance at elevated temperatures.

Energy Fuels has already started developing those upstream materials. The company produced pilot-scale high-purity terbium oxide in March 2026 and produced its first dysprosium oxide at the White Mesa Mill in Utah in August 2025.

VAC therefore gives Energy Fuels a downstream destination for materials it is increasingly able to separate and refine itself.

The company also plans to acquire Australian Strategic Minerals, which would add commercial-scale rare earth metal and alloy capacity in South Korea and a planned metals plant in the US.

If both transactions are completed and expanded successfully, Energy Fuels would control a chain extending from mineral resources through oxide separation, metal-making, alloying and finished magnets.

US Government Finance Supports Rare Earth Industrial Integration

Government support is becoming central to Energy Fuels expansion. The company has secured a conditional commitment from the US Office of Strategic Capital for a 20-year loan of up to $725mn.

The financing is intended to accelerate expansion of the White Mesa Mill and construction of a US rare earth metals facility. This helps close the gap between separated oxides and magnet-ready metal and alloy products.

VAC has also received US government support. The company secured a $41mn grant from the US Department of State to develop a US metal-making facility.

These investments show that US rare earth policy is moving toward full-chain industrial capability rather than isolated upstream projects. The focus is increasingly on converting mineral resources into qualified finished components.

For automotive, defence, robotics and industrial customers, this matters because secure magnet supply depends on multiple linked stages. Any missing stage can recreate dependence on external processing.

Energy Fuels is therefore pursuing an unusually broad strategy. The company is not only adding production capacity; it is trying to internalise several of the most difficult steps in the rare earth value chain.

The challenge will be integration. Mining, separation, metallurgy and magnet manufacturing require different technical capabilities, customers and qualification systems. The value of the transaction will depend on whether Energy Fuels can connect those operations efficiently at commercial scale.

The Metalnomist Commentary

Energy Fuels is moving beyond rare earth mining into one of the most complete western mine-to-magnet strategies yet attempted. If the VAC and metals acquisitions are integrated successfully, the company could become a major non-China supplier of both heavy rare earth materials and finished NdFeB magnets.

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.

China's Baotou City to Expand Rare Earths Separation Capacity Amid Growing Demand

Baotou, a city in northern China's Inner Mongolia region, is set to significantly increase its capacity for rare earth smelting and separation in response to rising global demand. The city, already the world’s largest supplier of rare earth feedstock, plans to boost its output capacity to 234,000 metric tons per year by the end of 2024. This move will further cement Baotou’s strategic position in the global rare earths industry, which is critical for various high-tech and clean energy applications.

Northern Rare Earth (NRE), one of China’s leading light rare earth producers, is at the forefront of this expansion. The company is upgrading its smelting project at its Baotou Huamei subsidiary, which will increase the site’s rare earth extraction and separation capacity to 106,000 metric tons per year. This upgrade is a key component of Baotou's broader effort to expand its rare earths smelting and separation output.

In addition to this, NRE is expected to complete the construction of a neodymium-iron-boron (NdFeB) scrap recycling facility in Baotou, with a capacity of 4,000 metric tons per year. This will be the city’s first NdFeB recycling production line, further diversifying its rare earths industry.

The value of Baotou's rare earth industry output is projected to rise to 100 billion yuan ($14 billion) by 2024, up from 82.9 billion yuan in 2023. The city's output capacity for rare earth magnetic materials is expected to reach 159,000 metric tons by the end of this year, an increase from 135,000 metric tons in 2023, solidifying Baotou's position as the leading producer of these materials globally.

Baotou is also advancing its development of the rare earth permanent magnet motor industry, with ambitions to become the world’s largest rare earth application base. Wolong Electric Drive, a major manufacturer, is constructing a new motor facility in the city’s rare earths high-tech industrial development zone. The facility, expected to begin operations by the end of 2024, will produce 52,000 units of new energy vehicle motors, 32,000 units of low-speed high-power permanent magnet motors, and 1,300 units of wind turbine motors annually.

Chinese steel producer Baogang has already integrated 1,891 rare earth permanent magnet motors into its operations, with plans to replace over 40,000 traditional motors in the future. These advanced motors offer significant advantages over traditional ones, including a 10-20% reduction in electricity usage, a 50-75% decrease in volume and weight, and a 2-19% improvement in magnet performance.

In May, the government of the Inner Mongolia Autonomous Region announced a plan to accelerate the replacement of traditional motors with rare earth permanent magnet motors. This initiative is part of a broader strategy to reduce energy consumption and enhance efficiency in the industrial sector.

Aclara Rare Earth Oxides Plan Links Brazil Mining to US Separation

aclara

Aclara rare earth oxides production plans have been reaffirmed for the Carina project in Brazil, strengthening the company’s role in the emerging Americas rare earth supply chain. The Brazilian rare earth producer expects to produce more than 4,300 t/yr of rare earth oxides from 2028.

Aclara rare earth oxides output is expected to average 4,378 t/yr contained in mixed rare earth concentrate. The planned product mix includes 1,191 t/yr of neodymium-praseodymium, 156 t/yr of dysprosium and 27 t/yr of terbium.

Aclara rare earth oxides are strategically important because NdPr, dysprosium and terbium are key inputs for high-performance permanent magnets. These magnets are used in electric vehicles, wind turbines, robotics, defence systems and advanced industrial motors.

The Carina project is expected to have an 18-year mine life. Production costs are estimated at $29.20/kg of rare earth oxide produced, giving investors and customers a clearer basis for assessing the project’s long-term competitiveness.

Carina Project Adds Heavy Rare Earths to the Americas Supply Base

The Carina project’s value is not limited to light rare earths. Its mixed rare earth concentrate also contains several heavy rare earth elements that are difficult to secure outside China-linked supply chains.

Aclara expects annual output to include 173 t of samarium, 176 t of gadolinium, 10 t of lutetium and 1,160 t of yttrium. These materials add strategic depth to the project because heavy rare earth supply remains highly concentrated and increasingly sensitive to export controls.

Dysprosium and terbium are especially important for magnet performance. They improve heat resistance and magnetic stability in demanding applications such as EV traction motors, wind turbine generators and defence electronics.

The project therefore fits a wider western effort to build alternative rare earth supply chains. Brazil offers mineral potential, while the US provides downstream policy support and processing infrastructure incentives.

Construction at Carina is scheduled to begin in the third quarter of 2026. Initial output is expected in the second half of 2028, followed by ramp-up in 2029.

Louisiana Separation Plan Builds Downstream Magnet Chain

Aclara plans to send material from Carina to Louisiana for separation and processing. The US site will produce rare earth metals and alloys, moving the project beyond mine supply into downstream magnet material preparation.

This structure matters because rare earth security depends on more than mining. Mixed rare earth concentrate must be separated, refined, converted into metals and alloyed before it can support permanent magnet production.

The Louisiana processing route could therefore create a more integrated Brazil-US rare earth chain. It links Brazilian ionic clay-style rare earth resources with US separation, metal and alloy capacity.

Public-sector support strengthens the project’s strategic profile. The US International Development Finance Corporation provided $5mn for Carina’s development, while Louisiana granted $46mn in tax incentives to accelerate the separation project.

For western magnet manufacturers, Aclara’s model offers potential supply diversification. The company could provide NdPr, dysprosium and terbium units into a market where downstream users are actively seeking non-China material.

However, execution remains critical. The project must move through construction, commissioning, ramp-up and qualification before it can become a reliable supply source for magnet makers and strategic customers.

The Metalnomist Commentary

Aclara’s plan shows that rare earth competitiveness now depends on linking mine output with separation and metal conversion. The Brazil-Louisiana route could become strategically important if it delivers heavy rare earth volumes into the Americas magnet supply chain.

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.

China Rare Earth Export Controls Tighten Global Tech Flows

China Rare Earth

China rare earth export controls just tightened across mining, processing, magnets, and recycling. The China rare earth export controls require prior approval for technology transfers and technical services. As a result, the China rare earth export controls reshape risks for EVs, wind turbines, and defense supply chains.

What the rules cover

Beijing now restricts technology for mining, smelting and separation, and metal smelting. The rules also cover magnetic material manufacturing and secondary rare earth recycling. Authorities named samarium-cobalt, neodymium-iron-boron, and cerium magnet technologies. The measures include assembly, commissioning, maintenance, and upgrade services. Chinese entities also need approval before assisting foreign rare earth activities. Violations face penalties under the new regime.

Global impacts and industry response

The policy targets unauthorized tech transfer and national security risks. China previously limited exports of several medium and heavy rare earths. The latest move extends controls to know-how and services. Market participants expect stricter IP protection and slower overseas projects. Meanwhile, the US and allies keep building non-China supply chains. However, technology remains the key bottleneck outside China. China holds major reserves and advanced processing capabilities. That gap will challenge rapid diversification efforts.

China rare earth export controls may raise compliance costs for JVs. They could delay new NdFeB magnet lines outside China. Companies will likely pivot toward recycling and substitution. As a result, buyers may sign longer contracts with diversified suppliers. Governments may expand funding for separation and metals plants. Price volatility could rise if inventories tighten into 2026.

The Metalnomist Commentary

China just shifted leverage from material tons to proprietary process IP. Expect accelerated Western investments in separation, metalmaking, and magnet plants, plus stricter trade compliance. Winners will pair secure ore with in-house processing know-how and robust recycling.