As Chinese President Xi Jinping prepares for his visit to the United States, rare earths have emerged as a key card in U.S.-China negotiations. JL Mag, China's largest producer of rare earth permanent magnets, is significantly expanding its production capacity.
Headquartered in Ganzhou, Jiangxi province, JL Mag manufactures high-performance neodymium-iron-boron (NdFeB) permanent magnets. These magnets are used in electric vehicle motors, variable air conditioners, wind turbines, and industrial motors, with recent applications extending to humanoid robots.
JL Mag ranked as the world's top company in terms of production and sales of rare earth permanent magnet materials in 2024. The company also recorded its highest production and sales figures in 2025. According to its annual report, the production of magnet material semi-finished products reached 34,400 tons last year, while finished product sales totaled 25,300 tons. This represents a year-on-year increase of 17.31% in production and 21.25% in sales. JL Mag held a 10.1% share of the global neodymium-iron-boron permanent magnet market, making it the leader.
By the end of 2025, JL Mag plans to expand its production facilities to achieve an annual capacity of 40,000 tons. The actual production capacity for 2025 is expected to be around 38,000 tons, with an operating rate exceeding 90%. Additional expansions are underway. Last January, JL Mag confirmed a project in Baotou, Inner Mongolia, to build a high-performance rare earth permanent magnet facility with an annual capacity of 20,000 tons. This project began construction last year and is expected to be completed next year. By the end of next year, JL Mag's production capacity will increase to 60,000 tons, a 50% rise from the current 40,000 tons.
JL Mag's business is evolving from simple magnet production to precision components. The company supplies magnets not only for automobiles, air conditioners, and wind power but also for robots, industrial servo motors, 3C products, and low-altitude flying vehicles. Recently, it was selected as a supplier for a motor rotor project for humanoid robots by a leading technology company, marking the start of small-scale deliveries. The company is establishing a system to produce rotors, a key component of motors, directly.
In the first half of this year, JL Mag reported revenue of 4.6 billion yuan, a 32.5% increase from the previous year, while net profit surged 51.5% to 462 million yuan.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.