Highlights
- Zhejiang Dongyang DMEGC to invest RMB 424 million in expanding sintered neodymium-iron-boron (NdFeB) magnet production by 5,000 tonnes annually.
- Expansion will strengthen Innuovo’s position in the global permanent magnet supply chain, particularly in electric vehicle, wind energy, and electronics markets.
- China continues to dominate rare earth magnet production, controlling over 90% of global NdFeB manufacturing.
Zhejiang Dongyang DMEGC Rare Earth Magnet Co., Ltd., a wholly owned subsidiary of Innuovo Technology Co (opens in a new tab)., has secured board approval for a major expansion of its sintered neodymium-iron-boron (NdFeB) magnet production capacity. According to a June 30 report from Asian Metal, the company will invest approximately RMB 424 million (~USD 59.11 million) to increase annual output by 5,000 tonnes.
The expansion is expected to be completed within 18 months from the start of construction. It will significantly strengthen Innuovo’s position in the global permanent magnet supply chain, particularly in serving the electric vehicle (EV), wind energy, and electronics sectors.
NdFeB magnets are the backbone of advanced magnet applications, prized for their high magnetic strength and thermal stability. With China already accounting for over 90% of global NdFeB production, this move by DMEGC reinforces the nation’s control over critical downstream value chains, at a time when Western nations are scrambling to reshore or diversify supply.
Strategic Implications for Retail Investors
This expansion signals Innuovo’s intent to compete not just on volume but also on integration. Investors should note that Innuovo controls multiple stages of the magnet manufacturing process, from raw materials to finished products, offering potential efficiencies and pricing advantages. However, it also highlights continued Chinese dominance in value-added rare earth products, even as the U.S., EU, and Japan push industrial policies aimed at breaking this monopoly.
The Company
Innuovo Technology Co., Ltd. (SZSE: 000795) is a publicly traded Chinese high-tech firm headquartered in Jinhua, Zhejiang—part of the Hengdian Group conglomerate (opens in a new tab). Established in 1997 through the restructuring of Taiyuan Shuangta Ganyu, Innuovo specializes in the research and development, production, and sale of NdFeB permanent magnet materials and related electromechanical devices. Their product portfolio includes sintered and bonded NdFeB magnets, micro-motors, and healthcare equipment (e.g., electric wheelchairs), serving fast-growing sectors such as consumer electronics, electric vehicles, wind power, industrial robotics, and smart appliances.
With approximately 5,244 employees, Innuovo posted annual revenues near CNY 4.01 billion (US$550 million) in 2024, marking a modest ~0.7% decline year-over-year, though TTM financials show around CNY 3.95 billion and recent quarterly revenue of about CNY 840 million. The company remains profitable, with 2024 net income reported at CNY 247.7 million, and trades at a market cap of roughly CNY 11–12 billion. As a vertically integrated player in the downstream rare-earth supply chain, Innuovo is strategically focused on growing its NdFeB magnet capacity—evidenced by recent board-approved investments in sintered magnet expansion—positioning itself as a critical beneficiary of global decarbonization trends and rising demand in electrification and renewable energy markets.
Final Thoughts
This announcement may prompt other Chinese magnet producers to accelerate similar expansions. Western firms and policymakers should take note: while one rare earth project stalls, another scales up, shifting the strategic balance further downstream.
Source: Asian Metal, June 30, 2025. “Dongyang DMEGC to expand sintered NdFeB capacity.”
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