Northern Rare Earth Posts Surging Q3: Output Jumps, Projects Advance

Highlights

• Northern Rare Earth reports Q3 revenue of ¥11.43bn (+33% YoY) and net income of ¥610m (+69% YoY), driven by higher prices and record production volumes across oxides, metals, and magnetic materials.
• Production surged across segments:
  • Rare-earth oxides up 63% YoY
  • Metals up 24% YoY
  • Magnetic materials up 16% YoY
• Multiple capacity expansion projects advancing, including 5,000t separation and NdFeB recycling facilities.
• Board tightened governance through guarantee policy revisions and subsidiary liquidation, signaling disciplined capital management.
• Increased Chinese supply capacity impacts global pricing and Western rare earth project timing.

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China Northern Rare Earth Group High-Tech Co., Ltd. (SSE: 600111, “Northern Rare Earth”) approved and released (opens in a new tab) its unaudited Q3 2025 report and operating data, reporting double-digit revenue and profit growth on stronger pricing and higher volumes across oxides, metals, and magnets. The board and supervisory committee also passed resolutions to dispose and liquidate a small subsidiary and to revise the group’s guarantee policy (subject to shareholder approval)—a signal of tighter risk and capital management.

The Headline Numbers

RMB, unaudited

• Revenue: Q3 ¥11.43bn (+33% YoY); YTD ¥30.29bn (+40% YoY)
• Net income (attributable): Q3 ¥610m (+69% YoY); YTD ¥1.54bn (+280% YoY)
• EPS: Q3 ¥0.1688; YTD ¥0.4264

Management attributes gains to higher selling prices, increased volumes, and margin expansion, alongside stronger operating cash flow.

Volumes: broad-based growth, record outputs

Q3 production/sales (YoY):

• Rare-earth oxides: 6,939 t (+63%) / 9,837 t (+34%)
• Rare-earth metals: 12,197 t (+24%) / 11,766 t (+10%)
• Magnetic materials: 19,745 t (+16%) / 19,557 t (+15%)
• Polishing materials: 12,101 t (+75%) / 11,450 t (+56%)

Hydrogen-storage materials declined. Management says year-to-date output in smelting/separation, metals, and functional materials reached record levels for the period.

Operations, projects, and R&D

Northern Rare Earth highlights a “five-unified” operating model (planning, technology sharing, production, raw materials, maintenance) to lower full-chain costs and shift toward higher-value products. Project updates include:

• Phase I of a green smelting upgrade is entering integrated line commissioning; Phase II is advancing.
• A JV in Baotou is advancing early works on a 5,000 t separation capacity.
• Subsidiaries accelerating NdFeB scrap recycling (4,000 t line), 8,000 t metals/alloys, and 50,000 t high-performance NdFeB strip-cast alloy projects.

R&D highlights: 9 results commercialized (5 new products / 4 new technologies), progress on efficient electrolyzers, automated RE metal electrolysis control, and energy-saving quench furnaces.

Governance Moves

The Board (14–0) and Supervisory Committee (7–0) approved the Q3 report; Baotou Jingrui New Materials asset transfer and liquidation passed; and revisions to the Guarantee Management Measures will be put to a shareholder vote to standardize guarantees and reduce contingent risk.

Relevance for West

As a core upstream NdPr supplier, Northern Rare Earth’s rising volumes, cost discipline, and added separation/magnet-adjacent capacity suggest greater Chinese supply resilience—a critical factor for U.S. policymakers and OEMs as they rebuild ex-China mine-to-magnet capacity. Increased Chinese throughput can influence pricing, contract terms, and investment timing for Western projects.

REEx Takeaway

Q3 2025 shows sharp revenue and profit gains; oxide/metal/magnet output up; multiple capacity projects progressing; governance tightened via guarantee-policy revisions and a small subsidiary’s liquidation—signaling efficient scale-up with supply-chain implications for the U.S.

Disclaimer: This news originates from disclosures by a Chinese state-controlled enterprise and affiliated media. Investors should verify with independent sources and official filings.

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