Recent Developments in the Magnet Industry: Supply Chain Realignment and Emerging Demand
The global magnet industry is currently navigating a complex landscape shaped by supply chain restructuring and the rise of new applications.
International supply chains are accelerating their realignment. To build a permanent magnet supply system outside of China, Australian rare earth producer Lynas has signed an agreement with South Korea's JS Link to jointly build a neodymium-iron-boron (NdFeB) plant in Malaysia with an annual capacity of 3,000 tons, expected to commence production in 2027–2028. Meanwhile, Japan's Proterial has announced an investment to build a sintered NdFeB permanent magnet plant in Andhra Pradesh, India, with an annual output of 1,200 tons.
The domestic market faces short-term headwinds but holds clear long-term demand. According to SMM data, China's NdFeB blank production in June 2026 increased slightly by 1.7% month-on-month to 32,985 tons, but the growth was primarily driven by precautionary stockpiling amid raw material price fluctuations, rather than genuine end-market demand expansion. On the export front, affected by slower approval processes and off-season effects, NdFeB exports declined by 7.72% month-on-month in May. However, humanoid robots have emerged as a new demand driver, with global shipments reaching 19,100 units in the first half of 2026—a nearly threefold increase year-on-year—with Chinese manufacturers accounting for over 97% of the total. Leading magnet materials companies have benefited significantly, with JL Mag's first-half revenue reaching a record high of 4.7 billion RMB, representing a 52% year-on-year increase in net profit.
Technological upgrades and cost optimization are advancing in parallel. China Northern Rare Earth has proposed an investment of nearly 600 million RMB to build a 10,000-ton cerium-containing NdFeB production project, aiming to reduce costs and optimize the industrial structure by increasing the proportion of cerium. Concurrently, the National Key R&D Program has achieved a breakthrough in NdFeB recycling technology, successfully producing commercial-grade recycled magnets that can be manufactured using 100% scrap materials, which have already completed installation and testing in humanoid robot joint motors.
Post time: Sep-04-2026
