Highlights

• Chinese rare earth company introduces advanced automated vacuum smelting furnace that increases production yield to 99%.
• Production capacity jumped 73% from 15,000 to 26,000 tons annually through innovative cooling system and process optimization.
• Breakthrough technology reinforces China's global leadership in rare earth magnet production for critical technologies like EV motors and wind turbines.

In a bold step toward smart manufacturing, North China Rare Earth Magnetic Materials Company (a subsidiary of Northern Rare Earth Group) has unveiled its third-generation vacuum rapid solidification smelting furnace, setting a new domestic benchmark for high-efficiency, high-purity rare earth magnet production. This marks the company’s most advanced automation upgrade to date—and one with ripple effects well beyond China’s borders.

The new “Type III” furnace eliminates manual material loading via cranes, replacing it with an airtight automated feeding chamber integrated directly into the vacuum furnace system. With just the push of a button at the control station, workers can feed materials without breaking the vacuum seal—cutting labor intensity, boosting safety, and improving yield stability. According to technical manager Gao Haiqiang, the transition has lifted production yield from 98.6% to 99%, significantly reducing raw material losses in the process.

This is no isolated upgrade. Since 2021, the company has undergone three major furnace redesigns by consolidating the R&D capacity of its four subsidiaries. Its production capacity has jumped from 15,000 tons in 2021 to 26,000 tons annually—a 73% increase—driven by iterative cooling system innovation and process optimization.

The breakthrough began with the Type II furnace, which removed internal cooling forks and water-cooled trays in favor of externally connected copper tubing. This innovation halved cooling time and increased production efficiency by 50%. Engineers then discovered that inserting a rotating water-cooled drum between the copper tubes and the coolant tank achieved 360-degree cooling, further improving alloy uniformity and magnet performance.

Now, the Type III furnace is being rapidly adopted across all four subsidiaries, with plans to fully phase out Type II models in the coming year.

Why it matters

Rare earth magnets—especially neodymium-based types—are the beating heart of EV motors, wind turbines, and defense technologies. China already dominates over 90% of global rare earth magnet production. This breakthrough isn’t just about incremental efficiency—it’s about reinforcing that lead through smart manufacturing, cost control, and higher throughput.

For U.S. policymakers and Western manufacturers, the implications are clear: China isn’t waiting for competition to catch up. It’s building the future of rare earth magnetics now—and raising the bar with each iteration.

Source: China Northern Rare Earth (opens in a new tab) August 2025