JLM to Boost Neodymium Magnet Production Capacity Amid Growing Market Demand

Jinli Magnet (JLM)

Expanding Facilities to Meet Advanced Technology Needs

Jinli Magnet (JLM), a leading magnet manufacturer in China, has announced a significant investment of 1.05 billion yuan ($144.19 million) to expand its production capacity of high-performance neodymium-iron-boron (NdFeB) magnets. The expansion at its Baotou facility aims to add 20,000 tons per year to its current capacity, with construction expected to take two years. This move is set to increase JLM's total output capacity to 60,000 tons per year by 2025, aligning with the growing demands from sectors like new energy vehicles (NEVs) and energy-efficient technologies.

Facing Economic Challenges While Increasing Production

Despite the planned increase in production capacity, JLM forecasts a decline in net profits for 2024, estimating a drop of 42-52% due to falling rare earth feedstock prices and intense competition in the magnet sector. However, the company remains optimistic about future demand, especially from the NEV and inverter air-conditioner markets, supported by favorable government policies and increasing market penetration.

Strategic Market Positioning in a Competitive Landscape

JLM's expansion strategy reflects its commitment to maintaining a strong position in the rapidly evolving magnet manufacturing industry. The firm is adjusting to market dynamics, such as price fluctuations in rare earth elements, which are crucial in producing high-performance NdFeB magnets. Additionally, the overall growth in China's NEV production and sales, which reached record highs in 2024, presents further opportunities for JLM to capitalize on its expanded production capabilities.