Highlights

• China Northern Rare Earth Group achieved extraordinary financial performance with a 1,951% net profit increase in the first half of 2025.
• The company is expanding production across multiple rare earth projects, including a green smelting complex and downstream ventures in metals and magnets.
• The report highlights China's strategic dominance in the rare earth value chain, challenging Western industries' supply independence.

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China Northern Rare Earth Group High-Tech Co. (Northern Rare Earth), the world’s largest rare earth producer, reported (opens in a new tab) staggering earnings growth in the first half of 2025. Net profit surged to 931 million yuan ($128 million), a year-over-year increase of 1,951%. Revenue climbed 45% to 18.9 billion yuan ($2.6 billion), while profit excluding extraordinary items jumped more than fiftyfold.

The company attributed its extraordinary results to disciplined cost controls, aggressive project build-out, and strengthening domestic demand. Production of rare earth metals grew 28% year-over-year, while functional materials output climbed 16.7%—both hitting record levels. Sales volumes of key products, such as lanthanum-cerium and praseodymium-neodymium, also reached all-time highs, with metal sales increasing by 32% and functional materials sales rising by 18%.

Building an End-to-End Rare Earth Empire

Northern Rare Earth highlighted progress on several major projects that deepen China’s full-spectrum rare earth supply chain. A new-generation “green” smelting and separation complex entered final commissioning, with phase two already underway. Additional expansions include an 8,000-ton rare earth metals project at Huaxing Rare Earth, a 12,000-ton facility in Gansu, and multiple downstream ventures. These include a 50,000-ton alloy project and a 3,000-ton permanent magnet plant, positioning the company to capture a larger share of the high-value magnet materials market, which is critical for EVs, wind power, and defense.

Market Leadership and ESG Positioning

The company reported that it remains the industry leader by revenue, output, and market capitalization. Its product portfolio is increasingly tailored toward higher-margin customized oxides and single-element products. Northern Rare Earth also noted progress in state-owned enterprise reforms, corporate governance, and ESG disclosures. For the first time, it issued an English-language ESG report, earning upgraded ratings from China’s major financial index providers. Its shares were also added to the CSI A50 Index, boosting visibility with investors.

Implications for the West

This performance underscores Beijing’s determination to dominate the entire rare earth value chain—from mining and refining through to magnets and advanced materials. For Western industries, particularly in clean energy and defense, the report serves as another reminder of China’s entrenched lead in rare earths—and the challenges of reducing reliance on Chinese supply chains. Of course, President Donald Trump has been making moves to change that, with unprecedented moves, such as Department of Defense investment, for example, in California-based mine MP Materials. However, the USA has a steep climb to catch up to China.

Disclaimer: This article is based on Chinese state-owned media reporting. Figures and claims should be independently verified.

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