China's Huahong to Establish Magnet Plant in Inner Mongolia

Chinese resource recycling manufacturer, Zhejiang Huahong Technology, has announced plans to develop the first phase of a high-performance rare earth magnetic materials plant in Baotou city, located in China's Inner Mongolia region. This initiative marks a significant expansion for Huahong as it strengthens its foothold in the rare earth industry.

Expansion in Baotou

Huahong's subsidiary, Baotou Huahong New Material Technology, will oversee the construction of the first 10,000 t/yr phase of the high-performance rare earth permanent magnets project. This project is situated in the Baotou rare earth high-tech zone and represents a substantial investment of 400 million yuan ($56.31 million). The facility is anticipated to be completed and operational by the end of 2025, though specific details regarding the launch dates and construction schedule for the second phase remain undisclosed.

Strategic Acquisitions and Partnerships

In a strategic move to enhance its presence in the rare earths industry, Huahong approved in December 2023 the acquisition of 100% of Shandong Shuocheng New Material, a magnet manufacturing producer. The acquisition, valued at 90 million yuan, was executed through Huahong's wholly-owned subsidiary, Zhejiang Zhonghang New Material. Shuocheng brings with it an annual output capacity of 5,000 tons of high-performance rare earth magnetic materials.

Furthermore, Huahong's wholly-owned subsidiary, Ji'an Xintai, has partnered with Jiangxi Xinhenghui Venture Capital to form a new company. This venture will focus on recycling, disassembling, and reusing scrapped and outdated electric bicycles, industrial permanent magnet motors, and new energy motors. The collaboration aims to secure a steady supply and stabilize purchase prices of raw materials essential for Ji'an Xintai's comprehensive utilization of rare earth resources.

Enhancing Production Capacities

Ji'an Xintai will hold a 55% stake in the new company, contributing 16.5 million yuan towards the total registered capital, with Xinhenghui providing the remaining 13.5 million yuan. The new venture is expected to bolster Xintai's production capabilities, which currently include an annual output of 10,000 tons of rare earth oxides and 3,000 tons of permanent magnetic materials. Additionally, Xintai has the capacity to process 60,000 tons per year of neodymium-iron-boron recycling materials, further solidifying its position in the rare earth industry.