Highlights

• China's Jinlong Rare Earth named to elite "World-Class Specialized Leading Enterprises" list by SASAC, one of only 100 SOEs nationwide and two from Fujian Province, signaling priority access to state support and capital.
• Company deploys proprietary technologies including grain boundary diffusion and fuzzy linkage extraction to reduce costs and improve high-performance magnet output while cutting heavy rare earth usage.
• With 15,000-ton NdFeB capacity and 2,262 employees, Jinlong strengthens China's downstream rare earth dominance, intensifying competitive pressure on Western magnet producers in defense and clean energy sectors.

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China’s Jinlong Rare Earth (opens in a new tab) has been selected for a new national list of “World-Class Specialized Leading Enterprises,” according to an announcement from the State-owned Assets Supervision and Administration Commission (SASAC) under China’s State Council. The company is one of 100 state-owned enterprises (SOEs) nationwide to receive the designation and one of only two companies from Fujian Province to make the cut.

The announcement, published by the China Rare Earth Industry Association and sourced from Xiamen Tungsten Co., signals Beijing’s continued push to consolidate and elevate strategic materials firms under tighter state guidance.

What’s New—and Why It Matters

The “world-class” designation is not merely honorary. It reflects Beijing’s industrial policy strategy: identify high-performing SOEs in critical sectors—like rare earths—and channel policy, financing, and regulatory support toward them. For Jinlong Rare Earth, inclusion suggests priority access to capital, research partnerships, and possibly export policy coordination.

For Western businesses, this underscores China’s continued vertical integration and state-directed scaling in rare earth functional materials—key inputs for electric vehicles, wind turbines, defense electronics, and advanced semiconductors.

Technology Claims: Cost Down, Performance Up

Jinlong reports that it is building a “modernized rare earth industrial system” centered on green and sustainable development. The company highlights several proprietary technologies:

• Fuzzy linkage extraction technology
• Non-saponificationprocessing
• Fully automated control systems
• Grain boundary diffusion technology

These methods reportedly reduce production costs while improving performance in high-end rare earth functional materials. Grain boundary diffusion, in particular, is significant—it enhances magnet performance while reducing heavy rare earth usage, a major strategic concern for Western manufacturers dependent on dysprosium and terbium.

The firm also emphasizes joint research with leading Chinese universities and institutes, blending internal R&D with external partnerships to accelerate applied innovation.

Implications for the U.S. and Europe

This development reinforces a pattern: China is not retreating from rare earth dominance—it is upgrading it. By strengthening state-backed champions in processing and advanced materials, Beijing tightens its grip on midstream and downstream value-added segments, where the U.S. and Europe remain structurally weak.

If Jinlong’s cost-reduction and material-performance claims prove accurate, Western magnet and materials producers could face renewed competitive pressure—particularly in high-performance applications tied to defense and clean energy.

Profile

Established in the year 2000, Fujian Jinlong Rare Earth Co., Ltd. is a state-owned rare earth enterprise controlled by Xiamen Tungsten Co.,Ltd (opens in a new tab). The state-backed enterprise serves as the leading enterprise in the rare earth industry of Changting County . The company possesses a complete deep-processing industrial chain ranging from rare earth separation to products such as magnetic materials and phosphors. It has established large-scale production lines, including a 5,000-ton rare earth separation capacity and a 15,000-ton neodymium iron boron magnetic materials capacity. As of 2024, the company has 2,262 employees and total assets of 4.936 billion yuan. Its products are widely used in fields such as the metallurgical chemical industry, functional ceramics, optical glass, laser crystals, energy-saving lamps, wind power generation, automotive electric drive, household appliances, IT communications, energy-saving motors, and industrial robots. The enterprise has been recognized as a National Technological Innovation Demonstration Enterprise and a Manufacturing Single Champion, among other titles, and plans to build a world-class rare earth materials industrial base.

Disclaimer: This report originates from Chinese state-affiliated media sources, including the China Rare Earth Industry Association and Xiamen Tungsten Co. As with all state-linked announcements, the claims and technical details should be independently verified before being relied upon for investment or policy decisions.