China Northern Rare Earth Starts 50,000t NdFeB Alloy Trial Production
China Northern Rare Earth has initiated trial production of a 50,000-ton NdFeB alloy plant in Baotou, targeting full operations by end-2026.
Key points
- China Northern Rare Earth begins trial production of a 50,000-ton annual NdFeB alloy facility in Baotou.
- The plant features automated dosing and vacuum induction melting to produce varying grades of magnetic alloy.
- The company is expanding vertically into finished magnets with additional 5,000-ton and 3,000-ton capacity projects.
China Northern Rare Earth Group High-Tech [SHA: 600111] has commenced trial production at its new neodymium-iron-boron (NdFeB) strip-cast alloy facility in Baotou. Eight melting furnaces are currently online, marking the start of operations for a project designed to produce 50,000 metric tons of alloy and 10,000 tons of hydrogen-decrepitated material annually.
The company targets full commercial operation by the end of 2026. The facility is structured in two phases: Phase I covers 30,000 tons of alloy capacity, while Phase II adds a further 20,000 tons. According to Rare Earth Exchanges, this expansion represents a significant step downstream from oxide separation into engineered magnetic materials.
Automated production line capabilities
The plant utilizes automated raw-material dosing and vacuum induction melting to control chemistry precision. Digital manufacturing execution systems (MES) allow the facility to adjust metal recipes for different customer orders. This infrastructure enables the production of low-, medium-, and high-end NdFeB alloys, addressing the need for tight manufacturing control in the supply chain.
Vertical integration strategy
Northern Rare Earth is simultaneously expanding into finished magnet manufacturing through separate 5,000-ton and 3,000-ton annual projects. This deepens the company's vertical integration, linking PrNd metal production directly to strip-cast alloy and final magnetic components. The strategy emphasizes industrial scale and automation over new chemical breakthroughs, aiming to secure the middle section of the magnet supply chain.
Regional cluster development
Located within Baotou's magnet-material manufacturing cluster, the facility connects to a regional chain that includes motors and finished magnets. Management claims this will become China's largest single-site rare-earth magnetic-alloy facility upon completion. While the 50,000-ton capacity is supported by project documentation, the strategic focus remains on establishing metallization capacity to support broader industrial demand.
