en.Wedoany.com Reported - China's rare earth industry is ushering in long-term development opportunities, driven by multiple factors including sustained demand growth from emerging applications such as new energy vehicles, humanoid robots, and artificial intelligence; orderly tightening of domestic supply; and intensified global competition for strategic resources.
Rare earth elements are divided into light and heavy categories. Due to their unique electronic structure, they possess excellent optical, magnetic, and thermal properties, enabling the formation of new functional materials when combined with other materials and significantly enhancing the performance and quality of other products.
In recent years, China's rare earth industry has received key support from national industrial policies. The central government has successively issued policies such as the "Notice on the Work of Compiling the List of Integrated Circuit Enterprises or Projects and Software Enterprises Eligible for Tax Incentive Policies in 2026," the "Action Plan for Stable Growth of the Electronic Information Manufacturing Industry (2025-2026)," and the "Action Plan for Metrology Supporting the Development of New Quality Productive Forces in Industry (2025-2030)," providing a clear market outlook for the industry's development.
A report released by the China Commercial Industry Research Institute shows that global rare earth reserves (REO) in 2025 were approximately 85 million tons, a year-on-year decrease of 5.6%. China's rare earth reserves remained unchanged at 44 million tons, accounting for 51.8% of the global total, continuing to rank first in the world. Brazil ranked second globally with reserves of 21 million tons, accounting for 24.7%. Australia's rare earth reserves were adjusted from 5.7 million tons in 2024 to 6.3 million tons, accounting for 6.7%, a year-on-year increase of 10.5%, making it the major country with the largest increase in global reserves.
Global production of rare earth mineral products (REO) in 2025 was approximately 390,000 tons, a year-on-year increase of 1.4%. China's output remained at 270,000 tons, accounting for 69.2% of the global total; U.S. output remained at 51,000 tons, accounting for 13.1%; Australia's output remained at 29,000 tons, accounting for 7.4%; Myanmar's output decreased from 27,000 tons to 22,000 tons, accounting for 5.6%.
In 2025, China's rare earth output remained at 270,000 tons, accounting for more than half of the global total. Analysts at the China Commercial Industry Research Institute predict that China's rare earth output could reach 290,000 tons in 2026.
From January to June 2026, China's rare earth prices showed a downward trend, with the average price index in June standing at 256.9 points. In the second half of the year, driven by the recovery in new energy vehicle sales and accelerated wind power installation, coupled with the overseas premium brought by the continuation of export control policies, the price index is expected to stabilize and rebound to the 260-270 range in the fourth quarter.
China Rare Earth Group Resources Technology Co., Ltd. achieved operating revenue of 821 million yuan in the first quarter of 2026, a year-on-year increase of 12.77%; net profit attributable to the parent company was 139 million yuan, a year-on-year increase of 90.41%. In 2025, the company's main products included rare earth oxides and rare earth metals, with revenue accounting for 74.61% and 24.75% of the total, respectively.
China Northern Rare Earth (Group) High-Tech Co., Ltd. achieved operating revenue of 11.859 billion yuan in the first quarter of 2026, a year-on-year increase of 27.69%; net profit attributable to the parent company was 918 million yuan, a year-on-year increase of 112.99%. In 2025, the company's main products included rare earth products, trading business, and environmental protection products and services, with revenue accounting for 77.35%, 18.31%, and 3.45% of the total, respectively.
Xiamen Tungsten Co., Ltd. achieved operating revenue of 15.743 billion yuan in the first quarter of 2026, a year-on-year increase of 87.95%; net profit attributable to the parent company was 1.107 billion yuan, a year-on-year increase of 183.12%. In 2025, the company's main products included battery material products, non-ferrous metal products such as tungsten and molybdenum, and rare earth products, with revenue accounting for 42.83%, 42.43%, and 12.97% of the total, respectively.
Shenghe Resources Holding Co., Ltd. achieved operating revenue of 3.383 billion yuan in the first quarter of 2026, a year-on-year increase of 13.07%; net profit attributable to the parent company was 327 million yuan, a year-on-year increase of 94.64%. In 2025, the company's main products included rare earth products, zirconium-titanium and others, with revenue accounting for 94.10% and 5.43% of the total, respectively.
Zhongxi Nonferrous Metals Co., Ltd. achieved operating revenue of 1.535 billion yuan in the first quarter of 2026, a year-on-year increase of 1.93%; net profit attributable to the parent company was 171 million yuan, a year-on-year increase of 263.83%. In 2025, rare earth and related products accounted for 59.24% of the company's total revenue.
In terms of resource integration, China's domestic rare earth industry, through the formation of two major northern and southern rare earth groups and the consolidation of regional mines, has gradually concentrated fragmented mining rights and smelting quotas into the hands of leading central state-owned enterprises and local state-owned capital platforms. This allows the overall industry to control the pace of upstream supply, helping to transform rare earth ores from low-price competitive commodities into strategic resources released at a measured pace.
In the smelting and separation segment, China is promoting green transformation, including replacing heap leaching with in-situ leaching, closed-loop treatment of ammonia-nitrogen wastewater, resource utilization of radioactive waste residue, and automated control of solvent extraction processes. These measures aim to offset rising environmental compliance costs, further improve energy consumption, yield, and purity indicators in smelting and separation, and consolidate China's supply position for medium and heavy rare earths in the global supply chain.
In downstream deep processing, the industry is shifting from selling oxides and metal ingots to providing high-performance functional material solutions for permanent magnets, catalysis, hydrogen storage, and polishing. Through joint R&D with downstream OEMs, companies are spreading price fluctuation risks through long-term contracts, component customization, and closed-loop recycling, driving the industry's upgrade from resource sales to the output of material solutions.
