(Report produced by Author: CITIC**, Shang Li, Bai Junfei, Ao Chong).
Company Profile
Company background: China North Rare Earth (Group) High-tech Co., Ltd. (hereinafter referred to as "North Rare Earth") is located in Inner Mongolia Autonomous Region, one of the three major rare earth production bases in China, adjacent to the world's largest rare earth mine, is currently the world's largest, the highest output value of production, scientific research, in one of the rare earth industry leading enterprises. The company's predecessor, 8861 Rare Earth Experimental Plant, was established in 1961 and listed on the Shanghai Stock Exchange in 1997. Since its listing, the company has established the world's largest rare earth raw material production base and rare earth functional material manufacturing base relying on its resource advantages, and has a whole industrial chain system of rare earth smelting and separation, deep processing of new materials, and terminal application.
Shareholding structure: As of the end of the third quarter of 2023, the top 10 shareholders of the company held a total of 4610% of the equity, of which Baotou Iron and Steel (Group) Co., Ltd. directly holds 3671% of the shares, the largest shareholder of the company, its actual controller is the people of Inner Mongolia Autonomous Region.
Holding and shareholding subsidiaries: As of the third quarter of 2023, the company has a total of 29 subsidiaries through establishment, equity participation, mergers and acquisitions, covering four major sectors: industry, commerce, environmental protection and scientific research, of which the industrial sector covers rare earth raw materials business, rare earth functional materials business and product applications. The main enterprises engaged in the rare earth raw materials business include Baotou Huamei Rare Earth Hi-Tech, Inner Mongolia Baotou Iron and Steel Hefa Rare Earth, Gansu Rare Earth New Materials Co., Ltd., etc. The main enterprises engaged in the rare earth functional materials business include Zibo Baotou Iron and Steel Lingzhi Rare Earth High-tech Co., Ltd., Baotou Tianjiao Qingmei Rare Earth Polishing Powder, Inner Mongolia North Rare Earth Magnetic Materials Co., Ltd., etc. The main enterprises engaged in the application product business include Baotou Xibao General Medical System, Northern Rare Earth, Huakai High-tech, Hebei High-tech and so on.
Main business and products: The company's products are mainly divided into rare earth raw material products, rare earth functional material products and rare earth terminal application products. Among them, the company's rare earth raw material products include rare earth salts, rare earth oxides and rare earth metals, which are the main raw materials for downstream rare earth functional materials and new material product production and processing enterprises; Rare earth functional material products include rare earth magnetic materials, polishing materials, hydrogen storage materials, catalytic materials, etc., which are mainly used in the production and manufacturing of application products in the industrial field, such as magnets, polishing powder (liquid), nickel-metal hydride batteries, phosphors, catalysts, etc.; The company's rare earth terminal application products such as nickel-metal hydride power batteries, rare earth permanent magnet high-efficiency and energy-saving motors, rare earth permanent magnet magnetic resonance instruments, LED lamp beads, etc.
Company operating data
In the first three quarters of 2023, the company's revenue and net profit attributable to the parent company declined year-on-year. With the rapid development of downstream application fields of rare earth products, such as new energy vehicles, industrial motors, industrial robots, wind power generation, etc., the demand for rare earth market products is growing. Benefiting from the increase in sales and sales of rare earth products, the company achieved revenue of 372 in 20226 billion yuan, a year-on-year increase of 2253%；The net profit attributable to the parent company was 598.4 billion yuan, a year-on-year increase of 1664%。In the first three quarters of 2023, the company's multi-product sales increased significantly, but due to the decline in sales of rare earth products and the increase in raw material procurement costs, the company's overall operating performance declined, and the company achieved revenue of 249 in the first three quarters2.3 billion yuan, down 1098%；Realized net profit attributable to the parent company 13800 million yuan, down 70 million year-on-year19%。
The proportion of revenue and gross profit of the company's magnetic materials business continued to increase. The operating income and proportion of the company's magnetic materials business increased from 22 in 20180.9 billion 265%, growing to 112 in 20221.3 billion 436%；Gross profit and proportion increased from 34.1 billion 200%, growing to 55 in 20222.7 billion 559%, the proportion of revenue and gross profit increased significantly. Since 2018, the proportion of revenue and gross profit of the company's rare earth oxide business has decreased year by year, and the proportion of its revenue has dropped to 7 in 20225%, and the proportion of gross profit decreased to 60%。In 2022, the company's rare earth metals business achieved revenue of 1149.2 billion yuan, accounting for 447%, achieving a gross profit of 352.6 billion yuan, accounting for 357%。
In 2022, the gross profit margin of the magnetic materials business increased significantly, and the R&D expense ratio continued to increase. In 2022, the gross profit margin of the company's rare earth oxides, rare earth metals and magnetic materials will be 3080%/30.69%/49.29%, -7 year-on-year66/ -7.72/+5.38pcts。From 2018 to 2022, the company's overall expense ratio decreased year by year, from 849% down to 467%, of which the administrative expense ratio increased from 466% down to 281%, and the finance expense ratio increased from 284% to 078%。Since 2018, the company's R&D expense ratio has continued to increase, rising to 089%。The company's overall expense ratio for the first three quarters of 2023 was 514%, a slight increase, mainly due to increased R&D investment, and the R&D expense ratio in the first three quarters of 2023 was 130%。
In the first three quarters of 2023, the company's operating cash flow decreased year-on-year, and the asset-liability ratio rebounded. The company's operating cash flow in 2022 was 474.1 billion yuan, a year-on-year increase of 2497%, mainly due to the increase in sales volume and unit price of magnetic materials and rare earth metals. The company's operating cash flow for the first three quarters of 2023 was 216.4 billion yuan, down 5808%, mainly due to the sharp decline in rare earth prices. From 2018 to 2021, the company's asset-liability ratio remained stable at around 45%. In 2022, the company's debt-to-asset ratio dropped significantly to 3169%, mainly due to the repayment of corporate bonds. In 2023Q3, the company's debt-to-asset ratio rose to 3650%, mainly due to the company's new long-term borrowings.
Policies continue to exert force, and the supervision of the rare earth industry has been strengthened
The remediation of the rare earth industry is normalized, and the industry is developed in a standardized manner. Since 2011, when the concept of "rare earth strategic reserves" was first put forward and the state began to implement the storage plan, a series of policies focusing on the protection of rare earth resources and accelerating the application of key core technology innovation have been introduced. In 2017, the Ministry of Industry and Information Technology (MIIT) established an expert group on the order of the rare earth industry to continuously strengthen the rectification of the order of the rare earth industry, crack down on black rare earths, standardize rare earth mining, and control the total amount of rare earth mining. In January 2021, the Ministry of Industry and Information Technology (MIIT) issued the Draft Regulations on the Administration of Rare Earths, the first legislation in the rare earth industry, clarifying the division of responsibilities for rare earth management, the approval system for investment projects in rare earth mining and smelting separation, and establishing a management system for the total amount of rare earth mining and smelting separation. The state adheres to high-intensity and refined management of the whole rare earth industry chain, which is conducive to the standardized development of the rare earth industry.
The market size of rare earth functional materials is growing rapidly
Rare earth functional materials are one of the key strategic materials. According to the use function, rare earth functional materials are mainly divided into rare earth permanent magnet materials, rare earth catalytic materials, rare earth luminescent materials, rare earth hydrogen storage materials and rare earth polishing materials. Rare earth functional materials are the core materials supporting the new generation of information technology, aerospace and modern equipment, advanced rail transit, energy-saving and new energy vehicles, high-performance medical devices and other high-tech fields. Benefiting from abundant rare earth resources and policy guidance, China has established a relatively complete rare earth industry chain, becoming the world's largest producer and exporter of rare earth functional materials, and the industry is in a period of rapid development.
The size of China's rare earth functional materials market in 2022 is 1203900 million yuan, in a high-speed growth trend. According to the data of the Toubao Research Institute, the market size of rare earth functional materials has increased from 274 in 2017$5.8 billion to $120.3 in 2022900 million yuan, CAGR of 34 from 2017 to 20224%, and the market size is expected to further increase to 62799.5 billion yuan, corresponding to a CAGR of 39 from 2022 to 20271%, the growth rate is expected to increase further.
Downstream demand is booming, and supply and demand are expected to tighten
The high-prosperity terminal industry has driven the demand for permanent magnet materials and boosted the simultaneous growth of rare earth demand. According to data from the Huajing Industry Research Institute, in 2022, permanent magnet materials accounted for 42% of China's rare earth consumption structure, which is the largest consumption area, and smelting machinery, petrochemical industry and glass ceramics accounted for % and 8% respectively. According to the data of Shanghai Nonferrous Metals Network, in 2021, in various terminal applications of permanent magnet materials, traditional vehicles and wind power accounted for 29%, new energy vehicles accounted for 13%, and energy-saving elevators accounted for 8%. Industries such as new energy vehicles, wind power and energy-saving motors conform to the policy trend of low-carbon and environmental protection, and have a high degree of prosperity, and are expected to develop rapidly in the future with the help of the dual carbon policy, which will continue to boost the demand for rare earths.
The consumption of NdFeB in the field of new energy vehicles is expected to maintain rapid growth. According to the Copper Development Association, EV passenger cars, PHEV passenger cars, and HEC buses consume 342/2.58 10kg, according to the ** data of the new energy vehicle group of the CITIC ** Research Department, it is estimated that the domestic new energy vehicle production in 2024, 2025 and 2030 will be 1140 1560 19.5 million units, and the foreign new energy vehicle production will be 687 respectively3/ 873.3/2594.80,000 units. Based on this, we expect that overseas new energy vehicle production in 2030 will bring 790,000 tons of NdFeB permanent magnet material consumption, corresponding to a CAGR of 26 in 2022-20303%；The amount of NdFeB used in domestic new energy vehicles is expected to increase to 640,000 tons, corresponding to a CAGR of 13 in 2022-20309%。
Policies have driven the penetration rate of energy-efficient motors, and we expect the demand for NdFeB in this sector to increase to 10 by 202590,000 tons. The Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation (SAMR) proposed in the Motor Energy Efficiency Improvement Plan (2021-2023) that by 2023, the proportion of high-efficiency and energy-saving motors in service will reach 20%. In June 2022, the Ministry of Industry and Information Technology and other six departments jointly issued the "Industrial Energy Efficiency Improvement Action Plan", proposing that 70% of new high-efficiency and energy-saving motors will be added by 2025. Under the policy stimulus, we expect the penetration rate of rare earth permanent magnet motors to rise to 30% in 2025, assuming that the output growth rate of industrial motors remains at 5%, the corresponding demand for NdFeB will reach 1090,000 tons. In 2024, the development of humanoid robots is expected to further accelerate, opening up the long-term growth space of magnetic material demand. High-performance NdFeB is an important raw material for robot servo motors. On November 2, 2023, the Ministry of Industry and Information Technology (MIIT) issued the "Guiding Opinions on the Innovation and Development of Humanoid Robots", which clearly put forward the development goal of mass production of humanoid robots in 2025. On December 13, Tesla unveiled the second generation of humanoid robots, which are 10kg lighter and more flexible than the first generation. We assume that the amount of NdFeB used in humanoid robots is 4kg, and it is expected that 2024, 2025, and 2030 will bring 01/0.4/1.20,000 tonnes of NdFeB demand increases.
Driven by new energy vehicles, industrial motors and robots, we expect the global demand for NdFeB to be 31 in 202560,000 tons. We expect the global NdFeB demand to be 190/23.2/31.6/53.40,000 tons, corresponding to a CAGR of 16 in 2022-20308%。According to Baichuan Yingfu data, the average PrNd content of rare earth ores in the world is 225% with a dysprosium content of 06% with a terbium content of 01%, the corresponding rare earth oxide demand is 292/35.7/48.7/82.10,000 tons.
Domestic supply comes from national quotas, and overseas supply increments are limited
In 2023, a total of three batches of rare earth indicators will be issued, and the growth rate will slow down. In 2022, China's rare earth mining and smelting separation indicators will be 2100,000 tons and 2020,000 tons, with a year-on-year growth rate of 25%. In 2023, China's rare earth mining index will be 2550,000 tons, a year-on-year increase of 214%；The smelting separation index is 2440,000 tons, a year-on-year increase of 207%, showing a slowdown in growth. Assuming that the domestic light rare earth index and the smelting separation index will increase at a rate of 15% and 15% in 2024 and 2025, respectively, and at a rate of 10% from 2025 to 2030, and the domestic heavy rare earth index will remain unchanged, the domestic rare earth mining index in 2024, 2025 and 2030 will be 290/33.1/52.10,000 tons, smelting separation indicators were 280/32.2/51.90,000 tons.
We expect global rare earths** to increase to 6810,000 tons. Based on the above calculations, we expect that the domestic rare earth mining indicators in 2024, 2025 and 2030 will be 29 respectively0/33.1/52.10,000 tons. Overseas light rare earths** are dominated by the U.S. Mount Pass mine and Australia's Lynas, and according to USGS data, the U.S. rare earth mine production in 2022 was 430,000 tons, which has been steadily increasing in recent years, we expect U.S. mines** to grow at a rate of 1% from 2023 to 2030, and U.S. mines** in 2023, 2024, 2025, and 2030 will be 43/4.4/4.4/4.70,000 tons. For the lyans side, according to the company's announcement, its rare earth mine production in fiscal 2022 was 170,000 tons, a steady increase, we expect a growth rate of 2% in 2023-2025 and 1% in 2025-2030, which corresponds to 1 Australian mine in 2023, 2024, 2025, and 20307/1.7/1.8/1.90,000 tons. According to the data of the General Administration of Customs of China, from January to November 2023, China's imports of Myanmar ore are 380,000 tons, mainly due to the resumption of the China-Myanmar treaty port, due to the recent suspension of rare earth mining in Myanmar, we expect Myanmar to reach 400,000 tons, Myanmar mine ** volume is expected to fall back to the normal level of 20,000 tons in 2024, we expect 2024-2030 growth rate, then 2025 2030 Myanmar mine ** is 20/2.20,000 tons. In terms of monazite, according to Chen Lu, Li Huaiguo and Liang Lixia in "Rare Earth Market Situation and Pattern", monazite is expected to increase to 3 in 202300,000 tons, and there is still a growth trend, we expect a growth rate of 3% in 2024-2025 and 2% in 2025-2030, and the growth rate in 2023, 2024, 2025, and 2030 is 30/3.1/3.2/3.40,000 tons. In addition, we expect scrap growth of 5% from 2023 to 2030. Overall, we expect the global rare earth volume to be 41 in 2023, 2024, 2025 and 20303/43.2/47.7/68.10,000 tons.
From 2025, the global rare earth supply and demand gap is expected to continue to expand, forming a long-term support for rare earths. We expect global rare earth demand to be 292/35.7/48.7/82.10,000 tons, the supply of rare earths is 413/43.2/47.7/68.10,000 tons, the gap between supply and demand is 121/7.6/-1.0/-14.00,000 tons. However, with the continuous improvement of the economic environment and the strengthening of consumption in the fields of new energy vehicles, robots, industrial motors, etc., rare earth consumption is expected to grow rapidly, and supply and demand are expected to tighten, forming long-term support for rare earth **, and we expect that praseodymium neodymium oxide is expected to remain in the range of 35-550,000 yuan in 2024.
Advantage 1: Relying on Baiyun Obo mine, rare earth raw materials are stable and low-cost
Baiyun Obo Mine is the world's largest producer of rare earth resources, with large rare earth reserves, excellent quality and complete types. According to the company's announcement, the Baiyun Obo mine has proven rare earth resources of about 100 million tons, accounting for 77% of the world's proven reserves, 87% of the domestic proven reserves, and an average of 3%-5% of rare earth oxides (REO), and the prospective reserves of rare earth resources in the whole region exceed 13.5 billion tons. The Baiyun Obo rare earth mine is symbiotic with iron, and the main rare earth minerals are bas-cerium fluorocarbonite and monazite, with a ratio of 3:1 and a total rare earth reserve of 35 million tons.
The company's controlling shareholder, Baotou Steel Group, has the exclusive right to mine Baiyun Obo mine, and the reserves of rare earth oxides in the tailings pond rank second in the world. Since the Baotou Iron and Steel Concentrator was put into operation, a large number of beneficiation waste slag containing rare earths, fluorite and niobium and other components have entered the tailings pond. According to the data of "Baiyun Obo Tailings Pond and Its Resource Utilization Research Overview" (Qin Yufang, Ma Ying, Li Na), the tailings pond was closed in 2014, and the tailings resource reserves of the tailings pond reached 19.7 billion tonnes at a rare earth grade (REO) of 701% estimates that the reserves of rare earth oxides are 1381850,000 tons, ranking second in the world.
Baotou Iron and Steel Co., Ltd. has an exclusive rare earth concentrate, and the company's rare earth raw material cost advantage is significant. Baotou Iron and Steel Co., Ltd., the holding company of Baotou Iron and Steel Group, completed the acquisition of the tailings pond in 2015, and since 2017, the company has signed the "Rare Earth Concentrate Supply Contract" with Baotou Iron and Steel Co., Ltd. to determine the transaction and quantity of rare earth concentrate purchased each year. In 2022, due to the impact of rare earth market products***, from the fourth quarter** the contract will be re-signed in the first month of each quarter. In the fourth quarter of 2023, the rare earth concentrate transaction between the two parties was 20,536 yuan tons excluding tax (dry volume, REO=50%), which was 178%, the first upward trading in 2023**. By obtaining rare earth concentrate below the average market price from Baotou Iron and Steel Co., Ltd., the company's raw materials are stable, the cost advantage is significant, and the gross profit margin is significantly higher than that of comparable companies in the same industry, and the gross profit margin of the company's rare earth business in 2022 is 3848%, with an average gross margin of 1664%。
Advantage 2: The quota index accounts for a high proportion, and the main beneficiary of the increment
In 2023, the company's rare earth mining and smelting separation quotas will both account for more than 70%. Benefiting from the abundant resource reserves of Baiyun Obo Mine, the company's mining and smelting separation indicators have ranked first among major rare earth groups over the years. According to the data of the Ministry of Industry and Information Technology, in 2023, the company obtained a rare earth mining index of 17870,000 tons, a year-on-year increase of 261%, accounting for 7006%；Smelting separation indicator 16 was obtained320,000 tons, a year-on-year increase of 266%, accounting for 7097%。We believe that in the context of the consolidation of the rare earth industry, the proportion of the company's indicators is expected to further increase.
Light rare earths and smelting separation incremental indicators are centrally allocated to the company. Affected by environmental protection factors and downstream demand, the mining indicators of medium and heavy rare earths are strictly controlled, and the increment of mining indicators from 2019 to 2023 is maintained at 1920,000 tons, 2019-2023 10The 80,000-ton mining index increment is all concentrated in light rare earths. In 2023, the company's light rare earth index increment will be 370,000 tons, an increase from 12 in 20195% rises to 698%；The smelting separation index increment is 2330,000 tons, an increase from 12. in 20195% to 832%, with the vigorous development of downstream industries, the future light rare earth mining, smelting and separation indicators are expected to continue to increase, and the company will continue to benefit.
In the first three quarters of 2023, the company's rare earth oxides and rare earth metals production increased year-on-year. In 2022, the company's rare earth oxide production was 1280,000 tons, a year-on-year increase of 117%；Sales volume is 2370,000 tons, down 4366%, mainly due to the increase in the proportion of self-use. Since 2019, the company's rare earth metal production and sales have continued to increase, and the output in 2022 will be 2430,000 tons, an increase of 16 percent year-on-year41%；Sales volume is 2380,000 tons, a year-on-year increase of 1661%。In the first three quarters of 2023, the company's rare earth oxide production was 1340,000 tons, a year-on-year increase of 3806%；Rare earth metal production is 2060,000 tons, a year-on-year increase of 2096%, rare earth smelting and separation and rare earth metal production reached the highest level in the same period in history.
Advantage 3: The company's rare earth industry chain is complete, and functional materials are developing rapidly
The company lays out the whole rare earth industry chain and has a rich range of products. After years of development, the company has taken the lead in the industry to develop into a group listed company integrating rare earth smelting and separation, functional materials, application products, scientific research and development, forming an industrial structure based on rare earth resources, smelting and separation as the core, focusing on the construction of new materials, and terminal application as the expansion direction, realizing the integrated development of rare earth upstream, midstream and downstream, and building an industry-leading whole industry chain advantage, which can currently produce 11 categories, more than 100 kinds and thousands of specifications of various rare earth products.
The company's magnetic materials business continues to expand, accounting for more than 50% of gross profit. From 2019 to 2022, the company's magnetic material production will increase from 1930,000 tonnes to 3800,000 tonnes with a CAGR of 25 in 2019-202228%；Sales volume increased by 2040,000 tons increased to 3760,000 tonnes with a CAGR of 22 in 2019-202257%；Gross margin increased from 1504% to 4929% year-on-year**. In the first three quarters of 2023, the company's magnetic material production was 3450,000 tons, a year-on-year increase of 2823%；Sales volume is 3480,000 tons, a year-on-year increase of 3002%, maintaining a high growth rate. Since 2018, the gross profit proportion of the company's magnetic materials business has increased year by year, and the magnetic materials business contributed 55% to the company in 20229% gross margin.
The company integrated and reorganized its magnetic material enterprises, increased capital and expanded production, and optimized the industrial layout. In order to further refine and strengthen the magnetic material industry, improve the local conversion rate of rare earth products, and promote the implementation of professional integration and industrialized operation, in 2022, the company will integrate and reorganize its magnetic material subsidiary, with Baotou Steel Magnet as the main operating body, and turn Ningbo Zhanhao, Anhui Permanent Magnet, and Beijing Sanjili into its wholly-owned subsidiaries, and Baotou Steel Magnet will be renamed Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. After the integration and reorganization, the company's high-performance NdFeB alloy production capacity will reach 80,000 tons by the end of 2022. North Rare Earth Magnetic Materials Co., Ltd. will fully launch the construction project of 50,000 tons of high-performance rare earth magnetic material production line in Baotou, and strive to complete the first phase of the construction task by the end of 2024 to further improve the local conversion rate of rare earth resources.
The company's rare earth polishing powder market share is leading. Rare earth polishing materials mainly include low cerium polishing powder, medium cerium polishing powder and high cerium polishing powder, and China's output currently ranks first in the world. According to data from the Toubao Research Institute, China's output of rare earth polishing materials in 2021 was 440,000 tons, a year-on-year increase of 297%, based on which the company's market share is estimated to be more than 70%. According to the company's announcement, the company has a polishing material production capacity of 340,000 tons per year. From 2018 to 2022, the company's polishing powder revenue increased from 3$4.3 billion to $4$1.6 billion. In the first three quarters of 2023, the company's rare earth polishing powder output was 1830,000 tons, down 1203%；Sales volume is 1890,000 tons, down 1054%。
Rare earth hydrogen storage materials are currently the most commercialized hydrogen storage materials, and the company accelerates the innovation and application of solid-state hydrogen storage technology. Solid-state hydrogen storage is based on metal hydride, chemical hydride or nanomaterials as hydrogen storage carriers, metal hydride hydrogen storage materials can be divided into magnesium, rare earth, titanium and zirconium, etc., among which rare earth hydrogen storage alloy is recognized as the best application performance in all hydrogen storage alloys. The hydrogen storage materials produced by the company include Lani5 hydrogen storage alloy and La-MG-Ni hydrogen storage alloy, which have the advantages of high capacity, fast charging, no pollution and long life, and the main application field is nickel-metal hydride power batteries. According to the data of the Chinese Rare Earth Society and the National Bureau of Statistics, the output of rare earth hydrogen storage materials in China will reach 1280,000 tons. Up to now, the company has a production capacity of 8,300 tons of rare earth hydrogen storage materials, and in the first three quarters of 2023, the company's hydrogen storage material output is 1,42126 tons, an increase of 2079%；Sales volume is 143243 tons, up 481%。
The company's terminal application fields are mainly nickel-metal hydride power batteries and rare earth permanent magnet motors. Combined with the characteristics of resources and industrial layout, the company specializes in special rare earth terminal application products, and now has a rare earth terminal application layout of hydrogen storage materials - nickel-metal hydride power batteries and magnetic materials - rare earth permanent magnet motors. NiMH power battery products have complete specifications, mainly AB5 hybrid rare earth series, which can meet the different needs of customers, and the products are widely used in civil, industrial, rail transit and other fields. According to the company's announcement, the company has an annual production capacity of 7 million nickel-metal hydride power batteries. In 2022, Northern Rare Earth cooperated with Qingdao Zhongjiate and Jiangsu Jiaxuan, high-quality enterprises in the field of Chinese motors, to set up a new company in Baotou and build rare earth permanent magnet high-efficiency motor production lines for different application fields. As of August 2023, the civil works of the first phase of the North Zhongjiate rare earth permanent magnet motor project have been basically completed, and the construction of the North Jiaxuan permanent magnet motor project has started.
Advantage 4: Give full play to the role of leading enterprises and help build "two rare earth bases".
In October 2023, the "Opinions on Promoting the High-quality Development of Inner Mongolia and Striving to Write a New Chapter of Chinese-style Modernization" was released, proposing to "strengthen the development and utilization of strategic resources such as rare earths", and one of the important tasks is to "build Baotou into the country's largest rare earth new material base and the world's leading rare earth application base." The company put forward the "114555" strategy, focusing on improving the support and guarantee capabilities of rare earth resources and scientific and technological innovation capabilities, and being the main force in the construction of "two rare earth bases": First, to build a world-class rare earth science and technology innovation highland. Increase investment in special scientific research, integrate internal scientific and technological innovation resources, build a national rare earth new material technology innovation center, strengthen intellectual property management, and form a number of high-visibility innovation achievements. The second is to build the world's largest base of high-quality rare earth raw materials. We will speed up the prospecting action of Baiyun Obo, actively participate in the development of rare earth resources in Mongolia, Kazakhstan and other countries, accelerate the construction of green smelting and upgrading projects of rare earth in the north, and continuously improve the market control of rare earth raw material products. The third is to build a world-leading rare earth new materials and application industry cluster. Promote the on-site deep processing of rare earth strategic resources, and build the world's leading rare earth magnetic material application base, rare earth hydrogen storage material application base, and rare earth alloy material application base. Fourth, play the supporting role of leading rare earth enterprises. Build a nationwide rare earth product trading center and a national authoritative platform for rare earth industry product testing and inspection technical services, and expand the "two rare earth bases" with local governments and enterprises through joint ventures, technical support, raw materials, etc.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
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