Highlights

• Baogang Group has scaled rare-earth permanent magnet motor production from zero to 4,270 units in three years.
• Two production centers have been established with full vertical integration from raw ore to finished motors.
• The company's strategic partnerships and modernized facilities now anchor China's control over the entire REPM value chain.
• Baogang Group has replaced 4,000+ older motors across coal, steel, and power sectors while cutting energy use and emissions.
• Rapid industrialization signals intensified Chinese competition in clean-tech motor systems.
• Baogang challenges Western supply chains with demonstration of manufacturing speed and technological self-sufficiency in rare-earth applications.

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Baogang Group, long known as China’s flagship rare-earth and steel producer, has announced (opens in a new tab) a milestone: production capacity for rare-earth permanent magnet (REPM) motors has reached 4,270 units in 2025—up from zero just three years ago. The company now operates two production centers—Baogang Electric (Sendin) and North Rare Earth–Jiaxuan—marking a full industrial-scale breakthrough from raw ore to finished clean-energy technology.

What began as a policy experiment in “resource-to-industry conversion” has matured into a national model. Backed by the “Two Rare Earth Bases” initiative and China’s dual-carbon (carbon peaking and neutrality) strategy, Baogang’s REPM push aligns with Beijing’s effort to replace traditional induction motors with energy-saving, low-emission, high-efficiency alternatives.

Vertical Integration With Strategic Partners

Baogang’s pivot began in 2022 when its rare-earth arm, Northern Rare Earth, consolidated four magnet manufacturers and partnered with Jiangsu Jiaxuan, a “Little Giant” enterprise specializing in REPM motor design. Within a year, they completed a plant capable of producing 1.6 MW-class motors, filling Inner Mongolia’s manufacturing gap.

Simultaneously, Baogang Electric modernized its 68-year-old motor division—building new rotor and assembly lines, forming a 3,000-unit annual capacity. Together, the twin operations now anchor a vertically integrated value chain converting Bayan Obo’s mineral resources into industrial end-products, strengthening China’s control over every stage—from mining to applied machinery.

From Factories to Fields

Baogang’s motors are already powering coal mines in Ningxia and steel operations in Baotou, where they have replaced over 4,000 units of older models, cutting energy use and emissions. The company now targets heavy-duty, green manufacturing, with applications spanning steel, rare earths, cement, coal, and power sectors.

Beyond production, Baogang has organized national “energy-saving equipment matchmaking” events, signing supply deals with 137 regional firms. It also launched China’s first rare-earth disc motor demonstration line, producing a 6-mm-thick, 3-watt axial flux motor for compact industrial and consumer uses—expected to scale to 500,000 units annually by year-end.

What are the Implications for the West?

For U.S. and Western manufacturers, Baogang’s move signals a new wave of Chinese downstream rare-earth industrialization—from magnets to full motor systems. The company’s “zero-to-4,270” leap demonstrates not just manufacturing speed but technological self-sufficiency, directly challenging Western clean-tech motor supply chains.

Baogang’s roadmap—innovation centers, research partnerships, and industrial alliances—suggests Beijing’s long-term goal: making rare-earth-based electromechanical systems a core export standard across energy, transport, and defense industries.

Source: Baogang Daily (state-owned media). This information originates from state media and should be independently verified.

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