Recently, Tianhe Magnetic Materials announced that its wholly-owned subsidiary Tianhe New Materials signed the "Investment Agreement on High-Performance Rare Earth Permanent Magnets and Components, Equipment Manufacturing and R&D Project (Phase I)" with the Management Committee of Baotou Rare Earth High-Tech Industrial Development Zone.
Tianhe Magnetic Materials is actively responding to the national policy of fully building "two rare earth bases." In accordance with the company's strategic development plan, its wholly-owned subsidiary Tianhe New Materials plans to invest in the construction of the "High-Performance Rare Earth Permanent Magnets and Components, Equipment Manufacturing and R&D Project" in Baotou City using its own funds and/or self-raised funds, with a total expected investment of RMB 850 million. The high-performance rare earth permanent magnet project is planned to be completed in two phases, with Phase I requiring an investment of RMB 210 million. After Phase I (construction period of 18 months, from March 2026 to August 2027) is completed and reaches production capacity, Phase II construction will be carried out based on market conditions.
Rare earths are indispensable strategic resources for developing emerging industries. High-performance rare earth permanent magnet materials are widely used in new energy vehicles and auto parts, variable frequency appliances, energy-saving elevators, wind power generation, industrial robots, and consumer electronics. China's "carbon peak" and "carbon neutrality" goals have increased market demand for rare earth permanent magnet materials, especially high-performance ones. In recent years, China's rare earth permanent magnet industry has achieved rapid growth, and the country has become the world's largest producer of neodymium-iron-boron permanent magnet materials. At the same time, China has become a major global exporter of rare earth permanent magnet materials, with the rare earth industry chain transforming toward high-value-added midstream and downstream products. According to data from the General Administration of Customs, China's rare earth permanent magnet material exports showed an overall increasing trend from 2016 to 2024, growing from 27,000 tons in 2016 to 58,000 tons in 2024.
