Highlights

• China establishes first cross-regional rare earth research and development hub.
• The hub links Shanghai's engineering ecosystem with Baotou's industrial capabilities.
• The innovation center focuses on high-performance permanent magnets for next-generation electric vehicle drive motors and cutting-edge technological applications.
• Strategic partnership aims to accelerate rare earth technology development.
• Research takes place in Shanghai and industrial transformation occurs in Inner Mongolia.

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In a move that underscores China’s determination to fuse research and industrial production in advanced materials, Baotou Rare Earth High-Tech Industrial Development Zone (opens in a new tab) and Wolong Electric (Shanghai) Central Research Institute Co., Ltd. (opens in a new tab) jointly inaugurated the “Baotou Rare Earth High-Tech Zone – Wolong Shanghai High-End Intelligent Equipment Innovation Hub” at Wolong’s headquarters in Shanghai.

The new hub—called a “sci-tech enclave” in Chinese policy terms—marks Baotou’s first enterprise-driven innovation outpost outside Inner Mongolia. It’s designed to establish a dual-locus R&D model: research and development in Shanghai, industrial transformation in Baotou. Officials said the partnership marks a new stage in China’s rare-earth innovation system, with cross-regional collaboration and institutional integration.

A New Engine for Rare Earth–Powered Technology

At the opening ceremony, Xu Xing, Director of the Baotou Rare Earth High-Tech Zone, emphasized that building the two “national rare earth bases” remains the zone’s top priority. Baotou already leads China in rare earth permanent magnet materials and their industrial applications. Partnering with Wolong—one of the world’s leading electric motor manufacturers—creates what Xu called a “new bridge connecting Shanghai’s intellect with Baotou’s industry.”

Xu added that the hub will concentrate on high-performance rare earth permanent magnets for next-generation electric vehicle drive motors and other cutting-edge applications. It will serve as a “technical outpost, talent center, R&D platform, and exchange conduit” for accelerating full-chain innovation—from research to pilot production to mass industrialization.

Wolong’s Role: A Northern Expansion of Southern Innovation

Zheng Yanwen (opens in a new tab), Vice President of Wolong Electric Drive Group, described the innovation hub as a strategic extension of Wolong’s global R&D network and “a forward operating base linking Yangtze River Delta innovation resources with Northern industrial upgrading.” Wolong pledged to provide facilities, funding, and talent to advance rare-earth applications, artificial intelligence, and emerging “low-altitude economy” technologies, such as electric aviation components.

Following the unveiling, the first four innovation experts—Yan Weican, Zhang Xiaoming, Zhou Ronghui, and Dr. Alexander Dieter Kleiner (opens in a new tab)—received official appointments to lead research in motor control systems and AI-driven design.

Why It Matters

This initiative is significant for the West because it reflects China’s mature, vertically integrated rare earth innovation strategy—linking upstream resources in Inner Mongolia with Shanghai’s high-end engineering and AI ecosystem. The “R&D in Shanghai, production in Baotou” model could accelerate China’s lead in EV drive systems and rare-earth-based smart motors, sectors central to global electrification and automation.

While framed as a local collaboration, this hub strengthens China’s control over the rare-earth value chain—from raw materials to finished products—making diversification by Western economies even more urgent.

Disclaimer: This report is translated from Baotou Daily, a publication affiliated with China’s state-owned Baotou Rare Earth High-Tech Industrial Development Zone. The information originates from a state-affiliated source and should be independently verified.

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