Highlights

• Jinli Permanent Magnet breaks ground on Phase III, doubling its NdFeB magnet capacity to 40,000 tonnes/year in the world's first net-zero rare earth magnet plant.
• Baotou's industrial strategy integrates green manufacturing, advanced technologies, and policy support to drive sustainable rare earth magnet production.
• The expansion demonstrates China's competitive advantage in ESG-compliant rare earth magnet manufacturing, targeting strategic industries like EVs and wind power.

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China’s rare earth capital is accelerating its push toward high-capacity, low-carbon permanent magnet production, with Jinli Permanent Magnet (Baotou) Technology Co., Ltd. breaking ground on Phase III of its green intelligent manufacturing expansion. The project will add 20,000 tonnes/year of high-performance NdFeB magnet capacity—doubling the site’s total to 40,000 tonnes/year and cementing its status as the world’s largest rare earth permanent magnet manufacturing base.

China Northern Rare Earth announced (opens in a new tab) the unfolding effort, timed at a time of immense rare earth element supply chain activity in the United States.

The facility, already billed as the world’s first net-zero rare earth magnet plant, integrates advanced automation, full-process digital control, and green production lines aimed squarely at high-growth applications in wind power, EVs, and energy-efficient appliances. Jinli’s R&D portfolio includes grain-boundary diffusion, fine-grain control, one-step forming, and high-corrosion-resistance coatings—technologies with proprietary IP that have attracted a roster of top-tier domestic and global customers.

Green Tech as Competitive Edge

Baotou’s municipal strategy—leveraging the “Two Rare Earth Bases” initiative—offers policy support, technical guidance, and green manufacturing subsidies to help companies cut costs and boost environmental performance. Local peers are contributing to the momentum:

• Baotou Inst. Magnetic New Materials: Over 200 R&D staff driving automation, predictive maintenance, traceability, and energy savings.
• Baotou Tianhe Magnets: Reduced heavy rare earth content in NdFeB magnets from >4% to 1–2% via diffusion tech and tailored material blends—meeting surging EV demand.
• Baotou Cixin Electronics: Developed rare-earth NdFeB–based triple-axis anti-shake motors for smartphones; annual capacity 30 million units, with domestic and global brand clients.

ESG Credentials and Scale

Northern Rare Earth Group (China Northern Rare Earth) has emerged as a national ESG model, securing recognition from the China Environmental Protection Federation’s 2025 Green Transition & ESG Practices list. Its achievements include:

• A green manufacturing system centered on green factories and green supply chains.
• Five municipal/provincial-level green demonstration units.
• A full-supply-chain carbon-neutral roadmap, solar power integration, and smart energy platforms—cutting unit energy consumption by 7.82% YoY.

Baotou’s Rare Earth High-Tech Zone now hosts 16 of Inner Mongolia’s 132 provincial-level green factories, underscoring its industrial cluster strength.

Industrial Policy Implications

Baotou is linking rare earth processing upgrades with hydrogen energy and NEV industrial policies, embedding green metrics into upstream and downstream operations. Targets include:

• 5% yield improvement
• 10% energy reduction
• 20% indirect economic gains via industrial internet adoption

The city is also using policy subsidies for advanced green equipment to offset transition costs, incentivizing companies to accelerate ESG-aligned production shifts.

REEx Investor Take

For global buyers seeking ESG-compliant NdFeB supply, Baotou’s latest moves show China’s integrated advantage: upstream resource security, rapid capacity scaling, and green technology adoption—all backed by local and provincial incentives. While this strengthens China’s market dominance, it also raises the competitive bar for ex-China magnet projects, where green manufacturing is now not just a compliance metric but a core differentiator.

The Company

Jinli Permanent Magnet (Baotou) Technology Co., Ltd., founded in August 2020 as a wholly owned subsidiary of JL MAG Rare-Earth Co., Ltd., operates from the Baotou Rare-Earth High-Tech Zone in Inner Mongolia. Backed by RMB 1.21 billion in registered capital and total assets of RMB 2.3 billion, the company employs an estimated 1,000–5,000 staff and plays a pivotal role in JL MAG’s dual-listed (Shenzhen and Hong Kong) global magnet supply chain. Its production capacity—approximately 23,000 tonnes per annum from Phase I with an additional 12,000 tpa from Phase II—supports a 2025 target of 40,000 tpa across all facilities. Leveraging advanced technologies such as grain boundary diffusion (GBD), automation, one-step molding, and specialized coatings, Jinli (Baotou) serves as a critical high-tech hub supplying high-performance NdFeB permanent magnets for strategic industries, including EVs, wind power, and energy-efficient systems.

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