Today, the A-share rare earth permanent magnet (core stock) sector rose strongly again in the afternoon. The overall activity of the sector increased significantly, and the willingness of funds to go long was strong.
The performance of core stocks was outstanding: Yingluohua rose straight up to seal the daily limit, Huahong Technology had previously reached the daily limit, Jiuling Technology, Huaxin Environmental Protection, Xinlaifu, Zhongzhen Ferrous, Zhongke Magnetics and other stocks followed suit and rose simultaneously. The sector showed a pattern of blooming at multiple points and strengthening in batches.
The core logic of the market revolves around the three main lines of tightening rare earth supply control, rising demand for permanent magnet materials, and increasing penetration of high-end applications. The industry’s supply and demand pattern continues to optimize, and the market’s expectations for the boom in the rare earth permanent magnet industry chain continue to strengthen, making it one of the core hot spots in the current market.
The rare earth permanent magnet (core stock) industry has received a lot of good news.
From the supply side, rare earth mining/smelting indicators are strictly controlled and supply continues to tighten.
According to the “First Batch of Total Volume Control Plan for Rare Earth Mining, Smelting and Separation in 2026” issued by the Ministry of Industry and Information Technology and the Ministry of Natural Resources in April 2026, it is clear that the mining indicators will only increase slightly by 2% year-on-year, and the smelting and separation indicators will remain the same. Increases will be strictly controlled, stocks will be optimized, and rigid constraints on industry supply will be strengthened to support the upward movement of the rare earth price center.
The demand side is showing a strong trend.
The demand for new energy vehicles (core stocks) + wind power (core stocks) has increased sharply, and the demand for permanent magnet materials has increased.
According to data from the China Association of Automobile Manufacturers in April 2026, new energy vehicle sales increased by 45% year-on-year in the first quarter, and the use of high-end permanent magnet motors in bicycles increased. According to data from the China Renewable Energy Society, wind power installed capacity increased by 38% year-on-year in the first quarter. The demand for high-performance neodymium iron boron for direct-drive wind turbines continues to expand, and the downstream demand side continues to explode.
The energy efficiency of industrial motors is upgraded, and the replacement of permanent magnets is accelerated.
According to the “Action Plan for Improving Energy Efficiency of Industrial Motors” released by the National Development and Reform Commission and the Ministry of Industry and Information Technology in March 2026, the elimination of inefficient motors is mandatory. The penetration rate of high-efficiency permanent magnet motors in key industries will increase to more than 40% by the end of 2026, driving the rapid release of demand for mid-to-high-end rare earth permanent magnets (core stocks).
High-end magnetic material technology has also made breakthroughs, and import substitution has accelerated.
According to the April 2026 report of the China Rare Earth Industry Association, the domestic production capacity of high-performance NdFeB magnets (52SH and above) has increased to 35%, and product performance has reached the international advanced level. Import substitution has accelerated in high-end fields such as new energy, robotics (core stocks), and aerospace, opening up space for industry growth.
There are many industries that have been positively affected.
The boom in the rare earth permanent magnet (core stocks) industry has directly led to an explosion of orders for the new energy vehicle (core stocks) core parts industry. According to a research report by CITIC Securities in April 2026, domestic demand for permanent magnet materials for new energy drive motors increased by more than 50% year-on-year in the first quarter. The capacity utilization rate of motor companies remains high, and gross profit margins continue to recover with the scale effect.
The wind power (core stock) equipment manufacturing industry has simultaneously benefited deeply. According to a research report by Tianfeng Securities, the proportion of direct-drive and semi-direct-drive wind turbines has increased to 65%. The amount of permanent magnet materials used in a single wind turbine has increased by more than three times compared with traditional models, driving the purchase of magnetic materials in the wind power industry chain to increase by more than 40% year-on-year.
The industrial automation and robotics (core stocks) industry has also benefited significantly. According to data from the China Electronics Technology Standardization Institute, the demand for high-coercivity permanent magnets for industrial robots and servo motors has increased by more than 60% year-on-year, driving high-end product orders from magnetic material companies to continue to increase, and the industry has entered a cycle of booming supply and demand.
