Highlights

• China Northern Rare Earth and Ningbo Zhaobao launch advanced 3,000-ton-per-year NdFeB magnet production facility in Baotou
• Joint venture project aims to create a vertically integrated rare earth magnet supply chain with cutting-edge automation and R&D capabilities
• Strategic initiative targeting high-growth markets like:
  • Electric vehicles
  • Wind turbines
  • Robotics
  • Advanced industrial motors

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Northern Zhaobao Rare Earth has been honored with a Nomination Award at the 4th Baotou Innovation Development Awards, underscoring its role in advancing China’s high-performance magnet industry. The award recognized the project management team behind the company’s new 3,000-ton-per-year sintered neodymium-iron-boron (NdFeB) production facility — a core component of China’s “Two Rare Earth Bases” strategy.

The project, launched jointly by China Northern Rare Earth Group and Ningbo Zhaobao, aims to integrate upstream mining, midstream processing, and downstream manufacturing into a fully self-contained high-end rare earth permanent magnet supply chain. This vertical integration is designed to leverage shared resources, complementary advantages, and Baotou’s deep rare earth industrial ecosystem to solidify China’s leadership in advanced magnet materials.

Built with the latest automated equipment and an industry-leading one-step forming process, the facility will also deploy a Manufacturing Execution System (MES) to maximize efficiency. A high-caliber R&D team is tasked with producing magnets featuring high magnetic induction, strong coercivity, and lower costs — targeting fast-growing markets including wind turbines, electric vehicles, humanoid robotics, servo motors, and energy-efficient industrial motors. Once operational, the project is expected to become a technical benchmark for the domestic sintered NdFeB sector.

Local officials frame the Innovation Development Awards as part of a broader push to create a “best-in-class” business environment and to reward companies that are deeply committed to Baotou’s long-term growth. The recognition also signals strong government backing for projects aligned with strategic national priorities in clean energy and advanced manufacturing.

Why It Matters for the West/USA

This project directly advances China’s rare earth magnet capabilities — particularly in NdFeB magnets essential to U.S. defense systems, EV motors, wind energy, and robotics. By pairing cutting-edge automation with domestic R&D, China is tightening control over the most technologically advanced segment of the rare earth supply chain. For the U.S., which remains heavily dependent on Chinese heavy rare earths and magnets, this development highlights the steep competitive challenge in achieving supply chain independence, especially as China further integrates production and innovation within its industrial hubs.

The Company

Northern Zhaobao Magnet is a joint venture company involving China Northern Rare Earth, Ningbo Zhaobao Magnet, Suzhou Torin Drive, and Ningbo Souwest Magnetech. It was established to produce high-performance NdFeB magnets. The company is located in the Baotou Rare Earth High-tech Industrial Development Zone. 

Key Aspects:

Partners

The joint venture brings together expertise from China Northern Rare Earth (a major rare earth producer), Ningbo Zhaobao Magnet (specializing in rare earth permanent magnet motor magnets), Suzhou Torin Drive, and Ningbo Souwest Magnetech. 

Focus

The primary focus is the production of high-performance NdFeB (neodymium-iron-boron) magnets, which are crucial for various applications like electric vehicles, wind turbines, and electronics. 

Location

The company is situated in the Baotou Rare Earth High-tech Industrial Development Zone in Inner Mongolia, China, a region known for its significant rare earth resources. 

Capacity

The joint venture aims to build a 3,000 tons per annum (tpa) high-performance NdFeB magnets production line. 

Strategic Significance

The establishment of Northern Zhaobao Magnet is part of a broader effort to strengthen the rare earth industry chain and promote green and low-carbon development. 

Recent Developments

In December 2024, Lian Hua from Northern Rare Earth was appointed as the chairman, and Chen Wei as the general manager of Northern Zhaobao Magnet, according to a post on Zhaobao Magnet's Facebook page (opens in a new tab). 

Citation: Baotou Innovation Development Award Nomination (opens in a new tab), Northern Zhaobao Rare Earth, Baotou, China, August 2025.