North China Rare Earth Posts Explosive Q1 Gains-U.S. Faces Growing Strategic Deficit Amid Trade War

Highlights

• North China Rare Earth Group achieved an extraordinary 716-736% year-over-year net profit increase in Q1 2025.
• The company saw record-breaking output in refined metals, permanent magnets, and hydrogen storage alloys.
• The performance underscores China's continued leadership in the global rare earth supply chain despite rising US-China trade tensions.

North China Rare Earth Group (NCRE), China’s dominant rare earth producer, has reported an extraordinary 716% to 736% year-over-year increase in Q1 2025 net profits, according to company disclosures. Driven by record-breaking output in refined metals, functional materials, permanent magnets, and hydrogen storage alloys, NCRE’s strong start to the year underscores China’s continued command over the global rare earth supply chain—even as U.S.–China trade tensions intensify.

According to the company’s press release (opens in a new tab), they have achieved all-time highs in rare earth smelting (+6.7%) and metal production (+53%), with the one magnetics division increasing sales by 36% and revenue by 51%.

In hydrogen storage alloys, Q1 output soared 57.1%, a segment vital to the future of clean energy storage and electric vehicles. Several subsidiaries reported revenue growth of over 200%, while value-added material divisions rapidly expanded their customer base, product diversity, and market share.

Rare Earth Exchanges (REEx) suggests that assuming this performance is an actual representation of reality, it’s representative of a critical wake-up call for U.S. policymakers and industry leaders. While Washington pursues tariffs and export restrictions in a bid to reduce dependence on Chinese critical minerals, Beijing’s vertically integrated rare earth juggernaut continues to grow stronger. Without urgent coordination of domestic mining, refining, and advanced manufacturing capabilities, as well as strategic alignment with allies, the U.S. risks permanent disadvantage in sectors that underpin national security, industrial competitiveness, and the clean energy transition.