Highlights

• China Northern Rare Earth Group reported a dramatic 45% revenue increase in the first half of 2025.
• The company experienced a 1,952% net profit jump in the same period.
• Investments are being aggressively made in new production facilities.
• Further investments are directed towards R&D and strategic projects.
• The focus is on rare earth metal and downstream applications.
• Despite global market challenges, the company maintained strong domestic demand.
• China Northern Rare Earth Group continues to expand its market leadership in rare earth technologies.

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China Northern Rare Earth Group High-Tech Co. (SSE: 600111), the flagship of China’s rare earth industry, has released its half-year 2025 results—and the numbers are striking. Revenue hit RMB 18.87 billion ($2.6 billion), up 45% year-over-year, while net profit attributable to shareholders surged to RMB 931 million ($128 million), a staggering 1,952% jump. Operating cash flow followed the same trajectory, climbing more than 1,250% to RMB 925 million. Earnings per share rose from a mere RMB 0.013 last year to RMB 0.258 this half, and return on equity rebounded from 0.2% to 4.1%.

The rebound is powered by both volume and pricing strength. Sales of praseodymium-neodymium (NdPr) and lanthanum/cerium (La/Ce) products reached historic highs, as China’s domestic demand held firm even as international markets softened. Average realized prices edged upward, boosting margins and underscoring the company’s pricing power in a strategically vital sector.

On the production side, Northern Rare Earth hit new records. Rare earth metal output rose 28% year-on-year, while functional materials such as alloys, polishing powders, and storage products increased 17%. Sales growth outpaced production: metal sales volumes jumped 32%, functional materials nearly 18%, cementing the company’s market leadership.

Exports, however, paint a more complex picture. China’s overall rare earth product exports rose 11.9% by volume but fell 24.4% in value, signaling declining average export prices. Permanent magnets—a downstream bellwether—saw volumes drop nearly 18% and values fall 28%, a warning sign for demand in overseas EV and wind sectors.

Meanwhile, investment continues at breakneck speed. A new “green smelting” facility in Baotou is entering commissioning, while phase two is under construction. New metal plants in Huaxing (8,000 tpa) and Gansu (12,000 tpa) are ramping up, with another 8,000-tpa project in pre-construction. Recycling capacity is being added at Jinmeng Rare Earth. On the downstream side, a 50,000-tpa magnet alloy project, a 3,000-tpa permanent magnet plant, and a 9,000-tpa polishing powder expansion are advancing, pushing the company deeper into high-value applications.

R&D is equally active. Northern Rare Earth filed 112 patents in H1, advanced five national project applications, and launched joint research with Fudan and Inner Mongolia University on high-end polishing liquids. Strategic projects include NdFeB micro-motors for humanoid robotics and unmanned aerial vehicles—signaling how China’s rare earth ecosystem is positioning itself for emerging industries.

Capital markets have rewarded the momentum. Northern Rare Earth’s market cap rose 17% in H1, with the stock joining the CSI A50 Index, a key benchmark for global institutional funds. Parent Baogang Group increased its stake by 43.1 million shares, a RMB 1 billion purchase that lifted its holdings to 38%.

But risks remain. The company itself points to price volatility in NdPr and La/Ce, rising costs in energy and logistics, and tighter environmental constraints. Beijing’s April 2025 export restrictions on heavy rare earths—including Sm, Gd, Tb, Dy, Lu, Sc, and Y—could further reshape supply chains and pricing power.

Rare Earth Exchanges Take

The rebound is real—sales volumes, pricing power, and policy support have delivered an industry-leading recovery. Yet management’s aspirational language about becoming a “world-class REE champion” depends on executing more than five large projects simultaneously. Export price weakness, especially in magnets, hints at potential margin compression down the line. For investors, the message is clear: Northern Rare Earth is delivering at scale, but volatility in export markets lingers just beneath the surface.

Disclaimer: This news originates from Chinese state-owned company filings anddisclosures (opens in a new tab). Figures and claims should be independently verified.

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