News

[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.

[SMM Rare Earth Express] The government of Kerala, India, announced that it has allocated 1 billion rupees (about $11.5 million) in the 2026–2027 budget and plans to build a rare earth and critical mineral corridor centered on Kollam, to promote mineral processing and the development of the critical mineral industry, and enhance India’s critical mineral supply chain capacity. However, the project is still in the planning stage. The construction plan for a rare earth processing plant, industry partners, offtake agreements, and specific timetables have not yet been disclosed, nor has the participation of IREL (India) or international enterprises been confirmed. Industry insiders believe that the 1 billion rupees can only serve as initial startup capital, falling far short of the tens of billions of US dollars needed to build a complete industry chain covering rare earth separation, metal, and magnet manufacturing. Therefore, at this stage, it more represents a policy signal for India to strengthen its strategic layout for critical minerals rather than a mature industrial investment project.

[SMM Rare Earth Flash] A research team from Southern Illinois University in the US has discovered that algae can increase the concentration of rare earth elements by more than double, offering a new approach beyond chemical processes for green rare earth extraction and potentially helping the US strengthen its critical minerals supply chain. The researchers added rare earth-containing rock powder and microalgae to a simulated river system, and the experimental results showed that the algae could absorb and concentrate rare earth elements, which were then recovered through a patented process. This technology is expected to reduce reliance on chemical agents such as sulphuric acid, and can be applied to the recovery of rare earths from secondary resources such as coal ash, mine tailings, and electronic waste. The team is currently testing more algae species and plans to apply for funding from the US National Science Foundation to further advance the research.

[SMM Rare Earths Flash] Rare Earths Americas (REA) announced that drilling at the Liberty Peak target in the Foothills rare earth district, Georgia, US, has intersected monazite-bearing placer mineralization with characteristics similar to the Shiloh project 50 km away, indicating the mineralized zone may be continuous rather than a single deposit. REA noted that previous drilling and surface sampling at the Shiloh project returned total rare earth oxide (TREO) grades of up to 44.5%, and the company believes the placer system may extend to Liberty Peak and multiple surrounding targets, expanding the Foothills rare earth mineralized area to 17.5 times that of the Shiloh target. Initial drilling at Liberty Peak intersected mineralization over 10 meters thick, with several holes yet to penetrate the orebody.

[SMM Rare Earth Flash] According to the SMM survey, in July 2026, the NdFeB industry's total blank production was 32,017 mt, with an average operating rate of 74.9%, down 3% MoM and up 1.5% YoY. August 2026 production is expected to reach 32,864 mt, up 2.65% MoM. Overall, in July, performance varied among producers: top-tier output remained stable, while mid-tier and other enterprises were significantly pulled back due to the impact of downstream operating rates. In August, driven by the downstream rush in September, NdFeB producers are generally optimistic.

On July 28, China Rare Earth Group held its 2026 mid-year science and technology work meeting at headquarters, systematically summarizing H1 scientific and technological innovation work and comprehensively deploying key tasks for H2. The meeting noted that the Group's scientific and technological innovation work made steady progress in H1, closely focused on the core mission of serving national strategic security, and achieved positive progress in areas such as research system construction, key technology breakthroughs, innovation platform establishment, and key project layout. The innovation landscape shifted from "a single flower blooming" to "a hundred flowers in full bloom."

On July 24, the Hangzhou sub-competition of the “Rare Earth Leads the Future, Innovation Wins in Lucheng” Baotou Rare Earth Future Industry Innovation and Entrepreneurship Competition was held. The competition was hosted by the Baotou Municipal Government and organized by the Office of the Talent Work Leading Group of the Municipal Party Committee, the Municipal Science and Technology Bureau, the Administrative Committee of the Rare Earth High-Tech Industrial Development Zone, and other units, aiming to attract talents and promote innovation through the competition and to foster deep integration between Baotou’s rare earth industry and the scientific and innovation resources of the Yangtze River Delta. The competition attracted numerous universities and research institutes, innovation teams, and technology enterprises from the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing, and other regions to compete on the same stage.

Li Yiren, Vice President of the China Iron and Steel Association (CISA) and President of the Metallurgical Industry Sub-Council of the China Council for the Promotion of International Trade (CCPIT), introduced that China leads the world in rare earth reserves, capacity, and separation and purification technologies. Applying high-abundance rare earth elements such as lanthanum and cerium to steel materials can not only diversify and efficiently utilize China’s advantageous rare earth resources, but also drive the transformation and upgrading of the steel industry, achieving the synergistic development goal of “rare earth + steel” for enhanced efficiency.

Xiamen Tungsten issued its H1 2026 earnings forecast. The company expects to achieve a net profit attributable to shareholders of the publicly listed firm of approximately 2.216 billion yuan in H1, an increase of about 1.247 billion yuan over the prior-year period, up 128.62% YoY.

China Northern Rare Earth held the H1 2026 Business Operations Analysis Meeting, at which it comprehensively analyzed and summarized its H1 production and operation performance, and systematically planned and deployed key tasks for H2. At the meeting, the economic operation of China Northern Rare Earth and its subsidiaries from January to June was reported, and key tasks for the next phase were studied and deployed. Company leaders and relevant departments attending the meeting put forward specific requirements for the subsidiaries to further strengthen business management.

Recently, China Machinery Industry Federation and China Rare Earth Industry Association held a discussion meeting. At the meeting, the two sides respectively introduced the operational dynamics of their respective industries. China Machinery Industry Federation pointed out that during the 14th Five-Year Plan period, the number of enterprises above designated size in the machinery industry increased by nearly 50%, and the trade surplus accounted for nearly 60% of the country's total trade surplus in goods, but it still faced challenges in basic parts, green transformation, and coping with international trade frictions. The China Rare Earth Industry Association focused on explaining the strategic landscape of China's rare earth resources—light rare earth needs to expand its applications, heavy rare earth has irreplaceable strategic value, and it directly confronted the impact of raw material price fluctuations on downstream applications.