China Rare‑Earth Giant Reports Robust First‑half Results Amid New‑energy‑driven Market Expansion

Domestic new‑energy industries are undergoing rapid capacity expansion, with sustained downstream market demand unlocking structural growth opportunities across the rare‑earth sector. China Northern Rare‑Earth Group draws on resource endowments from the Bayan Obo deposit, its complete end‑to‑end industrial chain and group‑wide lean management to capture market momentum created by new‑energy sectors, delivering strong operational outcomes for the first half of 2026.

Operational metrics including revenue, profit and output maintain leading positions within the industry. Subsidiaries within the magnetic‑materials division record substantial year‑on‑year revenue growth. Sales volumes of magnetic‑material products tailored for new‑energy applications advance steadily, while sales of lanthanum‑cerium‑based products rise year‑on‑year, enabling further destocking of historical inventories.

Over the six‑month reporting window, the group registers operating revenue of RMB 25.799 billion, marking a 36.75 per cent year‑on‑year increase. Net profit attributable to parent‑company shareholders reaches RMB 2.053 billion, up 120.46 per cent. Non‑recurring‑item‑adjusted net profit attributable to parent‑company shareholders stands at RMB 2.051 billion, representing a 128.79 per cent uplift. Net cash generated from operating activities totals RMB 1.208 billion, rising by 30.57 per cent year‑on‑year. Gross margin climbs to 15.03 per cent and the gearing ratio settles at 36.98 per cent. Solid operational quality and healthy cash‑flow positions furnish sufficient capital reserves for new‑energy‑focused advanced‑material projects and the development of a high‑quality full‑element, full‑category rare‑earth industrial system.

Rare‑earth materials constitute indispensable strategic inputs for new‑energy industries. High‑performance rare‑earth permanent magnets and hydrogen‑storage materials underpin technical iterations for wind‑power installations, new‑energy vehicles and hydrogen‑energy equipment. The new‑energy sector retains strong market momentum through the first half of 2026, directly lifting demand for high‑performance neodymium‑iron‑boron permanent‑magnet materials. Industrial analysis notes that expanding industrial activity positions new‑energy vehicles as the largest incremental downstream application for rare‑earth permanent magnets, whilst overseas inventory replenishment further enlarges market outlets for rare‑earth products.

Solid demand‑side fundamentals and rigorous supply‑side regulatory frameworks support generally firm yet volatile pricing for mainstream rare‑earth products. Northern Rare‑Earth achieves robust production and sales performance across core product lines. Output volumes for rare‑earth smelting‑separation goods, rare‑earth metals and functional‑application‑oriented rare‑earth materials all hit new half‑year records. The group operates a hybrid marketing framework combining long‑term supply agreements and spot retail transactions. Long‑term contracts secure core business volumes, whilst retail‑oriented sales allow flexible commercial adjustments. Product supplies reach all major domestic magnetic‑material manufacturers.

China’s rare‑earth industry is moving through a pivotal transition phase, shifting from scale‑based expansion towards higher‑quality development. Leading enterprises leverage resource‑base and technical strengths to move further up the value chain, bolstering end‑to‑end supply‑chain autonomy and core industrial competitiveness. These market shifts create favourable operating conditions for full‑value‑chain market leaders such as Northern Rare‑Earth.

Enduring resource‑base and integrated‑industrial‑chain strengths equip the group to navigate market cycles and capitalise on new‑energy‑related opportunities. Its controlling shareholder, Baotou Iron and Steel Group, holds exclusive mining rights over the Bayan Obo deposit, the world’s largest iron‑rare‑earth co‑mineralised ore body. Stable supply of rare‑earth concentrates delivers secure raw‑material foundations for production activities. After years of industrial development, Northern Rare‑Earth has emerged as the sector’s first listed group‑operated enterprise integrating rare‑earth smelting and separation, functional‑material production, end‑user‑oriented product manufacturing, research and development, and trade. Its industrial structure centres on rare‑earth resources, smelting‑separation workflows and advanced‑material development, with ongoing expansion into end‑market applications, forming globally competitive full‑element and full‑value‑chain capabilities.

Rare‑earth advanced materials act as critical links connecting mineral resources to new‑energy end‑user markets. Aligning its output with new‑energy‑sector requirements, Northern Rare‑Earth pushes key projects for high‑performance neodymium‑iron‑boron rapid‑quenching alloys and hydrogen‑crushed powders towards full operational capacity. Its production capacity for rare‑earth magnetic‑materials ranks among the highest globally, whilst hydrogen‑storage‑material output and sales maintain leading domestic standings. Product portfolios cover permanent‑magnet components for wind‑turbine hardware, magnetic materials for new‑energy vehicles and hydrogen‑storage alloys. Independently‑developed high‑capacity La‑Y‑Ni‑series hydrogen‑storage alloys deliver simultaneous improvements in hydrogen‑storage capacity and cycle life. Industrial‑scale roll‑out of rare‑earth flame‑retardant modifiers broadens application scenarios for rare‑earth compounds as auxiliary materials within new‑energy systems.

Progress accelerates across end‑application segments along two primary development threads: magnetic‑materials to rare‑earth permanent‑magnet motors, and hydrogen‑storage materials to hydrogen‑powered two‑wheel vehicles. Full‑in‑house manufacturing workflows for 2.2 kW and 1.1 kW rare‑earth permanent‑magnet motors reach completion in the reporting period, suitable for wind‑power equipment, industrial energy‑saving hardware and diverse new‑energy installations. The first batch of 1 000 rare‑earth hydrogen‑powered two‑wheel vehicles enters commercial demonstration operations within Baotou, accumulating 170 000 safe driving kilometres and generating practical operational data to advance the commercialisation of solid‑state hydrogen‑storage technologies.

Phase‑one construction of its green‑smelting‑upgrade project achieves commissioning with complete production‑line connectivity, and phase‑two works move forward in orderly fashion. Comprehensive smelting‑recovery rates keep rising, embedding green‑low‑carbon principles throughout the industrial chain. Secondary‑resource‑recycling projects deliver higher output alongside improved operational efficiency, whilst digital‑intelligent transformation initiatives gather pace, lifting overall green‑transition and smart‑manufacturing standards across the whole value chain.

Scientific and technical innovation forms the core driver linking rare‑earth resources to new‑energy‑industry requirements. During the first half‑year period, innovation workflows are deployed alongside industrial‑chain development. Technical research targets green smelting workflows, high‑grade magnetic materials, hydrogen‑storage hardware and permanent‑magnet motors for new‑energy applications. A complete “research‑pilot‑industrialisation” innovation incubation system takes shape. Eighty‑four new patent applications are filed, including sixty‑three invention patents. Sixty‑five patents receive official authorisation, covering five international patents and forty‑seven invention patents. Six national‑level key projects and fourteen provincial‑level projects remain under continuous advancement. The enterprise operates two national‑level innovation platforms, eight ministerial‑level platforms, two academician workstations, two post‑doctoral workstations and thirteen provincial‑level research facilities. Its subordinate rare‑earth research institute represents the world’s largest comprehensive rare‑earth‑research organisation, delivering strong collaborative research capabilities. A skid‑mounted solid‑state hydrogen refuelling station obtains Inner Mongolia Autonomous Region “first‑of‑a‑kind” equipment certification, with multiple new‑materials and new‑equipment variants achieving independent domestic controllability.

Deploying capital‑investment instruments, Northern Rare‑Earth expands its footprint within high‑value‑added industrial segments. In the first half‑year, it injects RMB 38.2073 million to increase capital holdings within its controlled subsidiary Zhongxin Antai to expand rare‑earth‑metal production capacity. A joint‑venture project for rare‑earth‑metal‑alloy production is established alongside Ningbo Funeng Rare‑earth New Materials with a capital contribution of RMB 112 million. Another joint‑venture initiative with Ningbo Shuoteng New Materials, funded with RMB 116 million, builds cerium‑containing neodymium‑iron‑boron magnetic‑material production lines. This project raises cerium‑element ratios within rare‑earth permanent‑magnet products, supporting wider adoption of cost‑effective rare‑earth‑magnet solutions. An investment totalling RMB 779 million funds the construction of a high‑calibre rare‑earth‑science‑and‑technology‑innovation complex to build world‑class rare‑earth research infrastructure. A further RMB 48.6471 million is channelled into equity increases for the Baotou Rare‑earth Research Institute, strengthening process‑revamping and advanced‑material‑application research capacities.

Global energy‑transition initiatives will further amplify the strategic significance of rare‑earth resources. The enterprise will deepen its market engagement across wind‑power, new‑energy‑vehicle, hydrogen‑energy and energy‑storage segments. Upstream green‑transition upgrades, mid‑stream product‑quality enhancements, downstream‑volume expansion and innovation‑driven efficiency gains will move forward in parallel. Supplies of high‑end rare‑earth advanced‑materials and end‑user‑oriented products will keep expanding. The complete closed‑loop rare‑earth industrial ecosystem will mature, supporting the development of China’s largest rare‑earth‑advanced‑materials base and a globally pre‑eminent rare‑earth‑application industrial hub.