Baotou Rare Earth High-Tech Zone Posts Double-Digit Growth-China’s Magnet Hub Powers Ahead

Highlights

• Baotou Rare Earth High-Tech Industrial Development Zone experienced 14.8% industrial added value growth from January to May 2025.
• Rare earth industries grew by 16.9%.
• New energy sector expanded by 38%, highlighting strong sector performance.
• Production of rare earth magnetic materials, compounds, and single rare earth metals all showed significant year-over-year increases.

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The Baotou Rare Earth High-Tech Industrial Development Zone has reported sustained and accelerating industrial growth from January through May 2025, according to a June 25 report (opens in a new tab) from Asian Metal News. Industrial added value above designated size surged 14.8% year-over-year—2.5 percentage points above the Baotou city average—marking the 54th consecutive month of double-digit growth.

The rare earth sector remains the cornerstone of this performance. The value added by rare earth industries increased by 16.9%, contributing 5.4 percentage points to overall industrial growth. Meanwhile, the new energy sector—closely linked to rare earth demand—expanded by 38%, contributing another 7.1 percentage points.

Output figures reinforce this momentum:

• Rare earth magnetic materials production reached 15,300 tonnes, up 23.8% YoY.
• Rare earth compounds totaled 23,100 tonnes, up 14.6% YoY.
• Single rare earth metals hit 2,100 tonnes, up 16% YoY.

These numbers demonstrate not only robust downstream processing capacity in Baotou but also surging demand from sectors such as EVs, wind power, robotics, and advanced manufacturing. The performance aligns with bullish outlooks from industry leaders, such as China Northern Rare Earth, which recently reported strong Q1 earnings and stable-to-rising orders for magnetic materials.

Investor Insight

Baotou’s sustained industrial expansion highlights the strategic resilience of China’s rare earth ecosystem, particularly in NdFeB production and related applications. With state policy prioritizing green growth, magnet-sector upgrades, and rare earth supply security, Baotou is poised to remain the engine room of China’s rare earth dominance.