Demand for resources, strict control of rare earth permanent magnet track delivery ability is the key.

As the third generation of rare earth permanent magnet materials, NdFeB permanent magnet materials are blooming with the rapid development of new energy vehicles, wind power and other industries. A reporter from the Financial Associated Press noted that although the relevant listed companies have been expanding production and increasing their size, good delivery may become a first-hand advantage at the moment.

Relevant industry analysts told the Financial Associated Press that in the context of continuous improvement on the demand side and increasingly tight control on the supply side, abundant liquidity, high-end products and cost control capabilities will help companies gain an advantage in the competition.

"according to Frost Sullivan, the global consumption of rare earth permanent magnets (mainly NdFeB permanent magnets) has increased from about 146600 tons in 2015 to 209500 tons in 2020 and is expected to further increase to 305200 tons in 2025," 300748.SZ, which was heard through the Hong Kong Stock Exchange on December 5, said in the Post-hearing data set.

The "post-hearing data set" also shows that the annual production capacity of Jinli permanent magnet high-performance NdFeB permanent magnet blank has increased from 7000 tons in 2018 to 12800 tons in 2020, and the capacity utilization rate in 2020 has reached 98.2%. Not only Jinli permanent Magnet, 688077.SH also mentioned in the December investor survey that "NdFeB product orders are relatively strong and the production line is at full capacity", while Zhenghai Magnetic Materials (300224.SZ) said bluntly in November that the company's capacity bottleneck could be effectively solved through capacity construction.

At the other end of the strong demand is the tightly controlled supply of resources. Although China is the largest producer of rare earth minerals in the world, the total amount of rare earth mining and smelting separation in China is strictly controlled, and no unit or individual may produce more than the target without an index. the index is issued by the Ministry of Industry and Information Technology and the Ministry of Natural Resources in batches every year. Guoxin Securities Research newspaper analysis said that with the gradual approach of the rare Earth Management regulations, under the strategic positioning of rare earths, the total index control may exist for a long time, and its growth will be closely related to the growth of market demand and environmental carrying capacity.

Increased demand, capacity expansion that has yet to reach production, and tightly controlled resources may focus the contradiction on delivery. Jinli permanent magnet insiders told the Financial Associated Press that the current delivery capacity is also one of the important indicators for customers to consider.

In the hearing data set, Jinli permanent Magnet said that huge production capacity, excellent R & D capabilities, know-how and strong product delivery capabilities have helped the company occupy a leading position in the market in major demand sides such as new energy vehicles and wind power generation.

Earth Bear said in the above survey that the company's continuous innovation ability, raw material guarantee built in deep cooperation with northern rare earths, and high-quality customer resources constitute the company's advantages from its peers.

000795.SZ said in a survey of investors on November 22nd that rich customer resources and a wide range of applications constitute the competitiveness of the company's magnetic products. At the same time, Inlova said that heavy rare earth reduction technologies, including grain boundary diffusion, have little difference among the head enterprises, and the company has also mastered and applied the relevant technology.

Zhenghai Magnetics said in the above investor survey that core technology, management system and other competitive advantages help the company establish a good brand image and occupy a dominant market position in the energy-saving and new energy vehicle market.