Highlights

• CNRE plans 50,000 mt/year high-performance NdFeB alloy expansion and targets high-end sectors like robotics.
• Company reports 61.2% revenue surge and 727% net profit increase in Q1 2025, driven by Pr-Nd price gains.
• China maintains rare earth market dominance with 40% global reserves and 90% global smelting capacity.

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According to a June 26 investor update via Shanghai Metals Market, (opens in a new tab) China Northern Rare Earth (CNRE) reports stable order trends and better-than-expected market conditions. The company remains bullish on rare earth prices, driven by tightened upstream supply and increased downstream demand.

Expansion in Magnetics

CNRE currently holds a 100,000 metric tons per year (mt/year) magnetic alloy capacity and is expanding through a 50,000 mt/year high-performance NdFeB alloy project. It also plans to produce 10,000 mt/year of hydrogen decrepitation powder, positioning itself as a cost-effective, high-volume player. The firm is advancing permanent magnet production through joint ventures with Antai Northern and Zhaobao Magnetic, targeting high-end sectors like robotics and intelligent equipment.

Production Controls and Policy Outlook

While 2025 production quotas for rare earth mining and smelting haven't been finalized, CNRE is operating on internal plans. The company cited the 2024 Rare Earth Management Regulations and upcoming MIIT guidelines as key to shaping future quota allocations, emphasizing the strategic importance of rare earths and the role of state oversight.

Green Smelting & Upgrades

CNRE’s green smelting upgrade project—among the largest globally—has entered its second phase. The initiative focuses on automated, intelligent, and low-emission production, with Phase I currently in trial operation and Phase II scheduled for construction in late 2025.

Market Position & Price Trends

CNRE reinforced China’s dominance in rare earths, with 40% of global reserves, 90% of smelting capacity, and complete coverage of the industrial chain. Pr-Nd oxide prices rose 11.68% in Q1 2025 YoY, reaching¥445,000/mt as of June 26.

Financials

Q1 2025 revenue surged 61.2% YoY to ¥9.29B, with net profit soaring 727% YoY to ¥431M—driven by higher Pr-Nd prices and lower raw material costs. This rebounded from 2024’s 57.6% net profit decline.

Investor Takeaway

CNRE is doubling down on magnetics and green capacity, betting on policy-driven momentum and China’s industrial edge to lift margins and market share.