Highlights

• Northern Zhaobao Magnets completed its first trial production of high-performance NdFeB magnets at a 3,000 tpa facility in Inner Mongolia.
• The project is backed by China Northern Rare Earth and Ningbo Zhaobao Magnet.
• The joint venture represents strategic vertical integration, combining upstream rare earth resources with downstream manufacturing expertise to strengthen China's dominance across the entire magnet value chain.
• While Western producers like Lynas, Iluka, and MP Materials remain dependent on Chinese midstream processing, China continues compounding its lead in the critical NdFeB magnet sector essential for EVs and clean energy.

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In a development that rippled quietly across the metals market this week, Northern Zhaobao Magnets (Inner Mongolia) Co., Ltd. announced the completion of its first trial production of sintered neodymium-iron-boron (NdFeB) magnets, according to Asian Metal (Sam Meredith, Oct. 21, 2025). The project — a 3,000-ton-per-year high-performance magnet line — is jointly backed by China Northern Rare Earth Group High-Tech Co. Ltd. and Ningbo Zhaobao Magnet Co. Ltd.

The Magnet Awakens

At first glance, this is standard industrial news. Yet it underscores a critical point: China isn’t merely guarding its dominance in rare-earth production — it’s extending it deeper into the value chain. The 3,000 tpa NdFeB plant may appear modest beside the country’s ~250,000 tpa magnet output, but its location in Inner Mongolia — the heartland of China Northern Rare Earth’s supply empire — marks a strategic integration play.

By blending Northern’s upstream resources with Ningbo Zhaobao’s downstream know-how, Beijing continues to close the loop between mining, separation, and end-use manufacturing. The result: a homegrown, vertically fortified magnet ecosystem largely immune to Western supply-chain disruptions.

Reading Between the Lines

The report’s technical details are credible. Asian Metal is a reputable industry tracker, and China Northern Rare Earth’s prior record in rare-earth separation gives weight to this milestone. But the piece is, unsurprisingly, devoid of any geopolitical context. The story omits mention of China’s export controls on magnet technologies or the fact that new plants like this one likely benefit from state-directed credit and price supports. The neutrality masks a subtle truth: each new NdFeB furnace in Inner Mongolia tightens Beijing’s control over the magnet segment just as Washington and Canberra scramble to fund their own nascent facilities.

Market Pulse and the Bigger Picture

Spot NdFeB block prices in China (35H grade) hover around RMB 520–540 /kg (~USD 72 /kg, AUD 110 /kg), down slightly from May peaks, yet still healthy for integrated producers. Western peers like Lynas Rare Earths, Iluka, and MP Materials remain largely dependent on Chinese midstream processing, underscoring how difficult it will be to replicate this supply web in the near term.

The real headline here isn’t trial production — it’s trajectory. China is not slowing down; it’s compounding its lead, magnet by magnet.

Company Profile: Northern Zhaobao Magnets (Inner Mongolia) Co., Ltd.

Northern Zhaobao Magnets is a new high-performance rare earth magnet joint venture between Northern Rare Earth, China’s state-owned rare earth powerhouse, and Zhaobao Magnet, a leading private-sector magnet manufacturer established in 1998. The venture was launched to produce next-generation rare-earth permanent magnets (NdFeB) — essential components for electric vehicles, wind turbines, robotics, and other clean-energy technologies. With an annual output target of 3,000 tons, the facility represents a strategic leap in China’s ongoing effort to advance domestic supply-chain integration. Phase I began trial production in late 2024, achieving its first trial batch by October 2025, while Phase II — now in design and procurement — is expected to commence construction in the second half of 2025.

This collaboration combines Northern Rare Earth’s upstream dominance in mining and refining with Zhaobao Magnet’s downstream manufacturing expertise, thereby establishing a complete rare-earth magnet ecosystem. The venture not only strengthens China’s vertical integration strategy but also positions itself to meet accelerating global demand for sustainable, high-performance magnet materials. According to Rare Earth Exchanges, the company’s development aligns with Beijing’s broader goal of promoting green, low-carbon industrial growth while reducing dependence on heavy rare earths. In effect, Northern Zhaobao Magnets stands as both an industrial milestone and a strategic instrument, tightening China’s control over the rare-earth magnet value chain from mine to motor.

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