Highlights
- Baotou INST Magnetic New Materials Co. will invest RMB650 million in a two-phase rare earth magnet materials project.
- The project is located in Baotou Rare Earth High-Tech Industrial Zone.
- The project aims to produce high-performance magnetic components for:
- Electric vehicles
- Defense sector
- Green energy sector
- China continues to strengthen its dominance in the rare earth magnet supply chain.
- Strategic vertical integration and technological innovation are key to China’s approach.
Baotou INST Magnetic New Materials Co., Ltd (opens in a new tab). has announced plans to invest RMB650 million (USD90.41 million) in an integrated rare earth permanent magnet materials application project in the Baotou Rare Earth High-Tech Industrial Zone (opens in a new tab). The investment will be executed in two phases: RMB400 million from June 2025 to June 2027, and another RMB250 million from June 2027 to June 2028.
The new facility will produce high-performance rare earth magnets—including multi-stage sintered magnetic rings and bonded NdFeB components (injection- and compression-molded)—for use in high-end drive motors, micro motors, and joint actuators. Baotou INST aims to enhance technological innovation, reduce production costs, and expand large-scale output by leveraging the region’s deep rare earth reserves and its technical expertise.
This project, covered by Asian Metal (opens in a new tab), is the latest signal that China is doubling down on its dominance of the rare earth magnet supply chain, even as the U.S. and its allies seek to diversify sources and rebuild processing capacity. While Washington imposes tariffs and pursues reshoring strategies, China is vertically integrating, strengthening upstream control while expanding downstream manufacturing.
Rare Earth Exchanges (REEx) reports that Baotou INST’s investment reflects Beijing’s long-term strategy: converting raw material advantage into full-spectrum industrial leadership across critical sectors like EVs, defense, and green energy. This transaction and unfolding development, part of a flurry of deals reported, evidence intensifying developments involving rare earth magnets.
Baotou INST Magnetic New Materials Co., Ltd Profile
Baotou INST Magnetic New Materials Co., Ltd., founded in 2011 and publicly listed on the ChiNext board of the Shenzhen Stock Exchange in December 2024 (Stock Code: 301622), is a high-tech enterprise specializing in the research, development, production, and sales of rare earth permanent magnet application devices. Headquartered in Baotou’s Rare Earth Hi-Tech Zone, the company serves global markets with advanced magnetic components and single magnet devices used in consumer electronics (3C), new energy vehicles, aerospace, wind power, and smart home applications.
With over 13,000 square meters of manufacturing space, 300+ patents, and multiple national recognitions—including designation as a “Specialized, Refined, and Innovative Little Giant” enterprise—Baotou INST is a core player in China’s rare earth industrial chain. The company supplies magnetic solutions to major international consumer electronics brands. It continues to invest in cutting-edge R&D, boasting credentials such as an Academician Expert Workstation, National Technological Innovation Demonstration status, and AAA credit ratings.
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