Highlights
- China’s rare earth permanent magnet sector experiences significant growth driven by:
- Tightened export controls
- Increasing demand from emerging tech sectors like humanoid robotics
- Chinese brokerages predict:
- 890,000 humanoid robot shipments by 2030
- Requiring over 3,100 tonnes of rare earth magnets
- NdFeB magnets remain the top performance-cost solution
- Challenges faced by the sector include:
- Unstable ore supplies
- Uncertain downstream demand
- Potential geopolitical disruptions in tech trade
China’s rare earth permanent magnet industry is on a tear—fueled by five consecutive daily limit-ups for BGRIMM Technology (opens in a new tab) and surging interest in peers like Huayang New Materials (opens in a new tab). Behind the frenzy is a volatile cocktail of tightened export controls, rapidly rising demand from emerging tech sectors like humanoid robotics, and institutional investors pouring into concept stocks across the supply chain.
According to Shanghai Metals Market (SMM), China’s Ministry of Commerce has begun strictly reviewing export licenses for medium- and heavy-rare-earth-containing products, especially those with dysprosium and terbium, essential for NdFeB magnets used in robotics, defense, and low-altitude aircraft.
Companies like JL MAG Rare-Earth (opens in a new tab) and Zhong Ke San Huan (opens in a new tab) report navigating new export declarations with selective license approvals granted for shipments to the U.S., EU, and Southeast Asia.
This comes as Chinese brokerages predict soaring demand for permanent magnets. Caida Securities (opens in a new tab) projects that humanoid robot shipments could reach 890,000 units by 2030, requiring over 3,100 tonnes of rare earth magnets. Guojin Securities (opens in a new tab) notes that NdFeB magnets continue to be the gold standard for striking a balance between performance and cost in aerospace, electric vehicles, and next-generation automation.
Surveyed companies, including China Northern Rare Earth (opens in a new tab), Xiamen Tungsten (opens in a new tab), Shenghe Resources (opens in a new tab), and Longi Magnet, (opens in a new tab)report bullish expectations for price appreciation, capacity expansion, and long-term strategic procurement. Notably, JL MAG sources 63% of its raw materials from state giants, such as China Rare Earth Group and MP Materials (U.S.), while GEM and Jintian are scaling their recycling capabilities to reduce supply-side risk.
Yet the rally masks real vulnerabilities: Myanmar-origin ore supplies remain unstable; downstream demand has yet to materialize fully; and Chinese producers are highly exposed to geopolitical shocks in tech trade. Despite state support and aggressive vertical integration, the race to decouple rare earth supply chains is accelerating.
Investor Takeaway
While Chinese magnet firms ride a speculative wave, Western investors should prepare for volatility, monitor license enforcement, and follow the technology demand curve—especially in robotics, renewables, and defense. The next leg of growth may hinge not on extraction, but on refining, recycling, and re-shoring.
Source: Shanghai Metals Market (opens in a new tab) (SMM), June 14, 2025
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