Recently, China Northern Rare Earth's joint venture moves in the magnet sector have attracted industry attention: China Northern Rare Earth has joined forces with Ningbo Zhaobao, Suzhou Tongrun Drive, and Ningbo Xici to establish Northern Zhaobao Magnetics, facilitating the implementation of a 3,000 mt/year high-performance NdFeB project. This seemingly independent set of moves actually reveals a fundamental shift in the underlying logic of the high-performance NdFeB industry's development—vertical integration and horizontal collaboration along the industry chain are becoming the core engines for technological breakthroughs and market competition.
I. Dual Value of the Joint Venture Model: Efficient Coupling of Resources and Technology with the Market
China Northern Rare Earth's two magnet joint venture projects demonstrate complementary strategic intentions:
Technology-Grafting Integration (Antai Northern)
Partner Characteristics:Antai possesses comprehensive rare earth permanent magnet preparation technologies, with profound expertise in high-end process areas such as grain boundary diffusion and microstructure control.
Integration Value:Combining China Northern Rare Earth's advantage in rare earth raw materials with Antai's magnet engineering capabilities, a vertical closed loop of ""resource endowment + manufacturing Know-how"" is achieved. This model rapidly breaks through the bottlenecks of magnet yield and consistency, providing guarantees for the mass production of high-end grades (such as 48H and above).
Application-Oriented Alliance (Northern Zhaobao)
Composition of the Cooperative Ecosystem:
Ningbo Zhaobao Magnetics (a professional sintered NdFeB producer) → Manufacturing Backbone
Suzhou Tongrun Drive (a leading high-end permanent magnet motor manufacturer) → Terminal Export
Ningbo Xici Technology (a magnetic component developer) → Application Bridge
Innovation Points of Integration:
Demand-Driven R&D:Motor manufacturers directly participate in the design of magnetic materials, transforming application pain points such as temperature rise suppression and demagnetization resistance into material performance indicators (e.g., Hcj≥20kOe);
Shortened Validation Cycle:The integrated development of magnets-components-systems accelerates product iteration (validation cycles for wind power and robot magnetic materials can be shortened by over 50%).
II. Inevitability of Industry Chain Integration: Resolving the "Triple Contradictions" of High-End Magnetic Materials
The core contradictions currently facing the high-performance NdFeB sector are compelling enterprises towards integration:
Contradiction of Technological Complexity → Low R&D input-output ratio for single enterprises → Joint ventures share R&D costs and avoid redundant investments
Contradiction of Fragmented Demand → High customization requirements for high-end applications → Downstream manufacturers participate to lock in demand and develop precisely
Contradiction of Supply Chain Risks → Pressure from heavy rare earth supply security and price fluctuations → Upstream resource parties lead integration to stabilize raw material channels
Typical Case Demonstration:In the Northern Zhaobao project, Tongrun Drive requires over 2,000 mt of high-performance magnetic steel annually for elevator traction machines. Its participation in the joint venture directly translates demand into production line standards, while mitigating the impact of heavy rare earth price fluctuations on magnetic material costs.
III. Industry Trend Deduction: Integration Direction and Reshaping of Competitive Landscape
Based on the practices of China Northern Rare Earth, industry chain integration will deepen in three dimensions:
Upstream Extension: Rare Earth Groups Accelerate Magnetic Material Capacity Layout
For example, China Rare Earth Group and Xiamen Tungsten have invested in magnetic material projects, binding high-end capacity through self-construction or joint ventures, transforming resource advantages into pricing power for magnetic materials.
Horizontal Collaboration: Establishing an Innovation Consortium of "Magnetic Materials - Components"
Drawing on the model of Northern Zhaobao, more alliances composed of magnetic material manufacturers, motor controller enterprises, and terminal equipment providers may emerge in the future, jointly formulating industry standards (such as ultra-thin magnets for NEVs).
Emergence of Technology Sharing Platforms
In response to common technological challenges such as grain boundary diffusion and surface coating, top-tier enterprises may jointly establish R&D centers (e.g., Zhenghai Magnetic Material and universities jointly establishing a rare earth permanent magnets research institute) to reduce the cost of individual breakthroughs.
