The concept of rare earth permanent magnets strengthens, Ningbo Yunsheng hits the daily limit, and several companies release news related to obtaining export licenses [SMM News Flash]

SMM June 30 News:

The Ministry of Commerce will continuously expedite the review of rare earth-related export license applications in accordance with laws and regulations, sending positive signals. Multiple spot market participants expressed bullish sentiment toward the rare earth market outlook. News of several companies obtaining export licenses and subsequent market capital inflows drove the rare earth permanent magnets concept index to rise for two consecutive trading sessions. The rare earth permanent magnets concept sector expanded gains significantly in the afternoon session on June 30. As of 14:18 on June 30, the rare earth permanent magnets concept sector had risen 2.72%, with individual stocks showing: KanHoo rising over 14%, Jiuling Technology and Zhongke Magnetism rising over 12%, and Ningbo Yunsheng hitting the daily limit. Beifang Technology, Benlang New Materials, Insead, Earth-Panda, and others also ranked among the top gainers.

News Updates

[Ministry of Commerce: China and the US Further Confirm Details of London Framework] A Ministry of Commerce spokesperson answered media questions regarding the China-US London framework situation. Q: Recently, US officials and media claimed that China and the US have reached supplementary understandings on implementing the framework of the Geneva consensus, with China to expedite rare earth exports to the US and the US to correspondingly remove restrictions on China. What is the Ministry of Commerce's comment? A: Under the guidance of the consensus between the Chinese and US heads of state, the two economic teams held economic and trade talks in London on June 9-10, reaching principal agreement on a framework for implementing the important consensus from the June 5 phone call between the two heads of state and consolidating the outcomes of the Geneva economic and trade talks. Following the London talks, both sides maintained close communication. Recently, upon approval, both sides further confirmed the details of the framework. China will legally approve eligible export applications for controlled items. The US will correspondingly remove a series of restrictive measures against China. We hope the US will work with China toward the same direction, further leverage the role of the China-US economic and trade consultation mechanism, continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable, and sustainable development of China-US economic and trade relations, in accordance with the important consensus and requirements from the June 5 phone call between the two heads of state.

[Ministry of Commerce Provides Update on EU Rare Earth Export Approvals: Certain Compliant Applications Approved ] At a regular press conference on the afternoon of June 26, a reporter asked about the status of rare earth export approvals to the EU. Ministry of Commerce spokesperson He Yadong: China has always attached great importance to maintaining the stability and security of global industrial and supply chains. We have continuously expedited the review of rare earth-related export license applications in accordance with laws and regulations, legally approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. China is willing to further enhance export control communication and dialogue with relevant countries to actively facilitate compliant trade.

[Ministry of Commerce: Will Continuously Expedite Review of Rare Earth-Related Export License Applications in Accordance with Laws and Regulations]At a routine press conference held by the Ministry of Commerce on June 19, spokesperson He Yadong stated regarding rare earth export issues that China will continuously expedite review of rare earth-related export license applications in accordance with laws and regulations. He emphasized that China consistently attaches great importance to maintaining the stability and security of global industrial and supply chains, has legally approved a certain number of compliant applications, and will continue to strengthen approval work for compliant applications. China is willing to further enhance export control communications and dialogues with relevant countries to actively facilitate compliant trade.

[Ningbo Yunsheng: Partial Commissioning of Intelligent Manufacturing Project for High-Performance Rare Earth Permanent Magnet Materials]Ningbo Yunsheng announced on June 27 that it had raised a total of 1.045 billion yuan through private placement of A-shares to invest in the "Intelligent Manufacturing Project for 15,000 mt/year High-Performance Rare Earth Permanent Magnet Materials of Baotou Yunsheng Technology Development Co., Ltd." Among which, 5,000 mt capacity was completed and commissioned in June 2025, and has now officially entered operation. This partial commissioning will effectively enhance the company's production capacity, further facilitate the conversion of technological and quality advantages into product advantages, promote market share growth, and strengthen the company's profitability and comprehensive competitiveness.

[Innuovo: Wholly-Owned Grandchild Company Plans 424 Million Yuan Investment in 5,000 mt/year Sintered NdFeB Expansion Project]Innuovo announced that its wholly-owned grandchild company Zhejiang Dongyang Dongci Rare Earth Co., Ltd. plans to invest approximately 424 million yuan in constructing a 5,000 mt/year sintered NdFeB expansion project. Upon completion, the project will add 5,000 mt/year production capacity for sintered NdFeB magnets. This project aligns with national industrial policies and industry development trends, and will help expand the company's NdFeB magnetic material business scale and enhance its overall strength. However, the project implementation may be affected by macroeconomic conditions, industry policies, market environment changes, and other factors, with potential risks including project delays, subpar implementation, planning modifications, or termination.

[JL MAG Rare-Earth: Successively Obtained Export Licenses for Medium-Heavy Rare Earth-Related Items from State Authorities Covering US, Europe, and Southeast Asia]JL MAG Rare-Earth disclosed in its investor relations activity record that following the introduction of export control measures for medium-heavy rare earth-related items, the company has conducted export declarations in compliance with state regulations and has successively obtained export licenses issued by state authorities for shipments to the US, Europe, Southeast Asia, and other regions. The company is actively collaborating with world-renowned tech firms in the research and development of embodied robot motor rotors and capacity expansion in the robotics sector, with small-batch deliveries already made.

[Shenghe Resources: Some Products Have Obtained Rare Earth Dual-Use Items Export Licenses]An investor asked Shenghe Resources whether the company has obtained export licenses for rare earth dual-use substances issued by the Ministry of Commerce. Shenghe Resources responded on the interactive platform that the company strictly complies with national laws and regulations in applying for export licenses for relevant products, and some products have already secured export approvals.

[Advanced Technology & Materials: Partial Rare Earth Permanent Magnet Orders Granted Export Licenses]An investor inquired about the progress of Advanced Technology & Materials' export licenses for rare earth permanent magnets. The company stated on the interactive platform that it is proactively implementing export declaration procedures in accordance with regulations, with some orders already receiving export approvals. The company's selling prices for rare earth permanent magnets adjust according to market dynamics following raw material price fluctuations.

[Earth-Panda: Export Business Contributed 31.98% of Q1 Revenue]During a June 26, 2025 survey, Earth-Panda disclosed it has secured dual-use item and technology export licenses issued by the Ministry of Commerce, with export destinations covering the US, Europe, ASEAN countries, and other regions. In Q1 2025, the company's export revenue reached 110 million yuan, accounting for 31.98% of total operating income. Among this, export revenue to the US totaled 36.177 million yuan, representing 10.61% of total revenue. The company maintains stable cooperation with China Northern Rare Earth and other rare earth suppliers to ensure diversified and stable raw material supply, with inventory levels maintained at approximately two months.

[China Northern Rare Earth: Recent Orders Remain Stable with Better-Than-Expected Overall Performance; Maintains Optimism on Rare Earth Price Trends]When asked about the company's outlook on future rare earth prices, China Northern Rare Earth responded during a recent institutional survey: Since Q1 2025, the rare earth market has shown greater vitality compared to the previous year due to factors including tightened upstream raw material supply and policy-driven downstream consumption stimulation. This has supported the company's Q1 performance. The company has seized favorable market opportunities to enhance production line efficiency, optimize raw material and product mix, expand market reach, and deepen reforms, achieving record-high production and sales volumes. In April-May, rare earth prices experienced a temporary pullback due to international environmental influences, but subsequent clarity in national policies reignited industry attention and drove price increases. Currently, the company's subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. maintains relatively full order books, and the company maintains an optimistic outlook on future rare earth price trends. Click for Details

The Rare Earth Industry Chain Remained Generally Stable on June 30

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On June 30, the rare earth spot industry chain operated with overall stability, while terbium oxide, terbium metal, and Pr-Nd alloy experienced minor declines. Recently, the rare earth market has demonstrated a steady performance, with price fluctuations narrowing compared to earlier periods. Behind this seemingly stable market condition lies a deeper interplay between policy dynamics and supply-demand fundamentals.

From a policy transmission perspective, recent adjustments to rare earth export control policies have led to sustained market caution, slowing down trading activities among traders and downstream enterprises. However, large smelters' continued procurement of key raw materials like Pr-Nd oxide has provided robust demand support. This behavior not only reinforces pricing confidence among upstream separation plants, keeping their quotations firm, but also drives metal producers to anchor ex-factory prices to cost lines through the "raw material cost — metal processing — magnetic material production" price transmission chain, ensuring profit margins.

Notably, positive signals are emerging from the downstream industry chain: some magnetic material enterprises reported improved orders in June compared to May, while leading magnetic material producers increased tender frequency, indicating recovering demand in sectors like NEVs and wind power. This demand recovery, coupled with upstream cost support, has created resonance, leading market participants to generally hold optimistic expectations for future trends.

Institutional Views

China Securities noted in its research report that nonferrous metals continue their bullish trend, with metal new materials entering a long-term growth phase. Key future focuses include: (1) AI new materials like magnetic materials: globally leading technology, excellent competitive landscape, and confirmed long-term industry trends; (2) Precious metals (gold, silver): the restructuring of the US dollar credit system remains ongoing, with upward fluctuation trends unchanged; (3) Industrial metals (copper, aluminum): temporary easing in China-US tensions, resilient demand (new energy + power grid investment) combined with supply bottlenecks, likely pushing the price center higher; (4) Strategic minor metals: explosive demand from new quality productive forces (e.g., molybdenum for superalloys, gallium/germanium for semiconductors, rare earths for permanent magnet motors), with significant price elasticity under rigid supply; (5) Rare earth magnetic materials: geopolitical conflicts reinforce their strategic metal status, highlighting sector investment value through a Davis double play.

Guotai Haitong Securities stated that since 2024, rare earth prices have gradually bottomed out, with China's quota slowdown policy continuing. While overseas rare earth development expectations are brewing, actual progress may fall short, whereas demand from NEVs, home appliances, wind power, and other sectors maintains the fundamental demand base. Humanoid robots represent a long-term upside option, as the curtain on a supply-demand reversal slowly rises. Rare earth, as a domestic strategic resource, is expected to see a profit and valuation upswing.

According to a Pacific Securities research report: China implements rare earth ore quota management, supplemented by imported ores. Countries including China, the US, Australia, and Southeast Asian nations all possess rare earth reserves, with China ranking first in production. To maintain healthy and orderly development of the rare earth market, China adopts a rare earth quota system, allocating 270,000 mt in 2024 (up 12.5% YoY), including 250,000 mt of light rare earth and nearly 20,000 mt of heavy rare earth. Meanwhile, the establishment of China Northern Rare Earth Group and China Rare Earth Group provides guarantees for orderly industry development. China boasts advanced rare earth smelting technologies and abundant resources, while continuously importing overseas rare earth ore products. According to data from the General Administration of Customs, China imported 132,900 mt of rare earth ores in 2024 (down 22.4% YoY) and 62,600 mt from January to May 2025 (down 21.7% YoY). As a critical strategic resource, rare earth has long been prioritized by countries worldwide. In accordance with Announcement No.18 [2025] jointly issued by the Ministry of Commerce and the General Administration of Customs, "Decision on Implementing Export Controls on Certain Medium-Heavy Rare Earth-Related Items," China further strengthens the strategic resource positioning of its rare earth industry chain. The rare earth permanent magnet market holds vast potential. As the largest downstream application sector of rare earth, rare earth permanent magnets primarily utilize four elements: praseodymium (Pr), neodymium (Nd), dysprosium (Dy), and terbium (Tb), with typical Pr-Nd accounting for 28-32% and combined Dy/Tb content below 5%. These four elements represent the most critical varieties. In recent years, advancements in dysprosium diffusion technology have reduced demand for heavy rare earths Dy and Tb, while elevating the prominence of Pr-Nd. Rare earth permanent magnets find extensive applications in automotive, energy-efficient motors, aerospace, and other fields. Notably, the rapid growth of NEV sales in recent years has become a significant growth driver for rare earth permanent magnets. Looking ahead, emerging industries such as humanoid robots and low-altitude sectors, along with the emergence of more energy-saving and intelligent products, will sustain long-term robust demand growth for rare earth permanent magnets. China leads the world in rare earth permanent magnet technologies, production capacity, and output, with its exports playing a pivotal role in the global industry chain.

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