Algae Doubles Rare Earth Concentration, Offers Green Extraction Method

[SMM Analysis: Pr-Nd Oxide Production in July Down 11% MoM; Can Demand Recover in August to Break the Deadlock?] In July, the supply side of China's rare earth oxide market saw a notable contraction. According to statistics, Pr-Nd oxide production this month declined by 11% MoM. This decrease was not due to a single factor, but rather the combined effect of simultaneous production cuts by both ore separation enterprises and scrap recycling enterprises. Some ore separation companies proactively halted production while awaiting further policy guidance. The scrap recycling side was even weaker, with companies that had already been cutting production not only failing to recover, but some further reduced output. The price inversion between scrap prices and product selling prices intensified, and the operational pressure in the recycling segment remained greater than in the ore separation sector. Medium-heavy rare earth oxide production was also impacted, with an equally significant MoM decline.

China's Pr-Nd alloy output rose 3.74% MoM and 7.57% YoY in July, driven by stronger toll processing in Inner Mongolia. Tight Pr-Nd oxide supply raised raw material costs, squeezing margins and curbing output at some producers. Weak magnet demand cut downstream operating rates by 3% MoM, leaving the market oversupplied. In August, alloy output is expected to rise about 1% MoM, while magnet production may increase 2.65% MoM, improving market balance.

[SMM Rare Earth Flash] Japan's auto parts maker Mitsuba has begun mass supply of rare-earth-free sunroof drive motors to a German automaker, marking the latest advance in the global automotive industry's push for rare-earth-free solutions. The motor adopts a redesigned magnetic circuit structure and non-rare-earth magnetic materials, achieving torque and durability comparable to conventional products without using rare earth elements such as neodymium. Currently, the product has been installed in multiple car models produced by the German automaker in Europe. Mitsuba plans to extend its rare-earth-free technology to on-board motor products such as wipers and power windows in the future, aiming to reduce supply chain risks and cost fluctuations.