National policies continue to promote the development of the rare earth permanent magnet industry, and terminal demand continues to increase

In recent years, the demand for high-end rare earth permanent magnet materials in emerging fields such as wind power generation, new energy vehicles, and variable frequency household appliances has been increasing. Rare earth, as a national strategic resource, adopts total amount control for rare earth mining and smelting. The Ministry of Natural Resources and the Ministry of Industry and Information Technology each year issue production indicators to enterprises that meet the requirements. No unit is allowed to produce without plan or beyond the plan.


From the perspective of current technological applications and publicly available research, it is difficult to achieve complete rare earth removal of permanent magnet motors in the short to medium term. Standing at the moment, the growth rate of domestic rare earth quotas may slow down or become a foregone conclusion. Against the backdrop of a comprehensive recovery in downstream demand, the rare earth industry is expected to rise in both quantity and price.


Upstream of China's rare earth permanent magnet industry: rare earth resources and production situation


According to data, the top five countries with global rare earth reserves in 2022 are China, Vietnam, Brazil, Russia, and India, with China ranking first with 33.8% of reserves. In 2022, China's rare earth production accounted for 70.0% of global rare earth production. Analysts from iMedia Consulting believe that China is in a leading position in the world in terms of both rare earth resources and production, and related industries have important strategic significance.


National policies continue to promote the development of the rare earth permanent magnet industry, and terminal demand continues to increase


High performance neodymium iron boron magnetic materials and various rare earth functional materials are key high-tech new materials for national development. The continuous implementation of national incentive policies has directly affected the development of the rare earth industry. In recent years, with the global development of new energy and the implementation of environmental policies in various countries, new energy vehicles, rare earth permanent magnet motors, wind power, and other industries have experienced rapid development. The application scenarios of high-performance neodymium iron boron magnetic materials are moving from traditional consumer electronics to emerging fields.