Separation Plants Resume Operations, Medium-Heavy Rare Earth Oxide Production Up MoM [SMM Analysis]

SMM February 21 News: In February 2025, China's production of medium-heavy rare earth oxides saw a significant increase compared to January. Jiangxi and Jiangsu, as the main production areas for China's medium-heavy rare earths, boast a well-developed industry chain and advanced technological capabilities. After resuming production, enterprises in these regions quickly ramped up capacity, becoming the primary contributors to the production growth in February.

According to SMM's survey data, the production of medium-heavy rare earth oxides in February recorded a substantial MoM increase, in stark contrast to January, when some separation enterprises reduced or halted production due to the Chinese New Year holiday or other reasons. In January, production activities of medium-heavy rare earth separation enterprises were affected by factors such as the Chinese New Year holiday and equipment maintenance at some companies, leading to a decline in production. However, after the holiday ended in February, enterprises swiftly resumed production, with operating rates rising sharply, driving the production growth.

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The implementation of the "Rare Earth Management Regulations" in 2024 further standardized the production order of the rare earth industry, cracking down on illegal mining and non-compliant smelting and separation capacity, creating a more stable environment for medium-heavy rare earth production. Additionally, with the rapid development of emerging fields such as humanoid robots, the demand for medium-heavy rare earths is expected to expand further.

Despite the production growth in February, the overall supply of medium-heavy rare earths remains tight. Especially under the backdrop of stricter policy controls and environmental protection requirements, prices are expected to continue a steady upward trend in the future.