Highlights
- China's JL MAG breaks ground on third phase of permanent magnet production, adding 20,000 tonnes annual capacity
- The company controls 14% of global high-end rare earth magnet supply
- Serves major clients like Tesla and Toyota
- Expansion supports China's strategic goal to dominate the permanent magnet value chain across mining, separation, and fabrication
China’s leading rare earth magnet manufacturer, JL MAG (Baotou) Technology Co., Ltd (opens in a new tab)., has officially broken ground on the third phase of its massive permanent magnet production complex in Baotou’s Rare Earth High-Tech Zone. According to Asian Metal (July 10), the new expansion will add 20,000 tonnes per annum (tpa) of high-performance rare earth magnet capacity and is backed by a RMB 1.05 billion (USD 146 million) investment over a 7.67-hectare footprint.
According to their data JL Mag controls 14% market share of the world’s high end rare earth magnet supply.
The development includes smart manufacturing workshops, high-throughput production lines, and grid-supporting infrastructure like a new substation. Once complete, JL MAG’s total production capacity at the Baotou base will hit 40,000 tpa—cementing its role as the world’s largest rare earth magnet producer.
Company Profile: JL MAG
JL MAG (Jingling Magnetics), founded in 2008 and publicly traded on the Shenzhen Stock Exchange, specializes in sintered NdFeB (neodymium-iron-boron) permanent magnets, used in electric vehicle (EV) motors, wind turbines, robotics, and high-efficiency motors across industrial sectors.
Key facts:
- Global Market Leader: Supplies to Tesla, Toyota, Siemens Gamesa, and BYD
- Vertical Integration: Sources rare earth oxides, handles metallurgy, coating, and shaping in-house
- Technology Edge: Focuses on high-performance, low-heavy rare earth (HRE) magnet grades to reduce reliance on dysprosium/terbium
- Domestic Anchor: Core production hubs in Baotou (Inner Mongolia) and Ganzhou (Jiangxi)
JL MAG’s aggressive expansion supports China’s long-term goal to dominate the permanent magnet value chain, from rare earth mining and separation to final magnet fabrication. With this latest buildout, the company is positioning itself to meet surging domestic and global demand for EVs, wind power, and defense applications.
Implications for Global Competitors
This move may intensify competition for Western magnet hopefuls like MP Materials, USA Rare Earth, Neo Performance Materials, and VAC, which are racing to onshore production and reduce reliance on Chinese supply. With global demand for NdFeB magnets projected to exceed 300,000 tpa by 2030, JL MAG’s scale and vertical control offer a formidable cost and speed advantage.
JL Mag is influenced by the Chinese state, but it's not fully state-owned. A significant portion of the company is owned by private entities and individual investors. While specific state ownership percentages vary depending on the source, one report indicates that state ownership is around 9.4%, with another 9.3% owned by government enterprises. Other sources highlight the involvement of state-owned enterprises (SOEs) as shareholders, including the China State-owned Assets Supervision & Admn Commission (opens in a new tab), and a mixed-ownership reform fund.
Rare Earth Exchanges Takeaway
JL MAG’s Phase III project is more than an expansion—it's a signal. China is doubling down on rare earth magnet leadership. For Western producers and investors, this raises the stakes: compete on tech, ESG, or verticality, or risk irrelevance. And we don’t have a lot of time. Yes, even with the recent MP Materials and Department of Defense deal, this involves a few years of ramp-up, at least, and in the meantime, trade conflict with China could worsen. The stakes are large.
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Rare Earth Exchanges™
…”compete on…ESG”…,
We have no idea what niche RE feedstock originally serves JL’s magnet needs, but if it is using feedstock from the likes of the DRC and Myanmar, then they may walking on eggshells when it comes to US/ROW ESG transparency compliance demands. A future barrier to non-ESG compliant components sold into non-Chinese markets? Just asking. GLTA – REI