1. In the field of new energy and energy conservation
Rare earth permanent magnet materials (such as neodymium iron boron) are the core of wind turbines and new energy vehicle motors. In 2023, the sales of new energy vehicles in China reached 9.495 million units, driving a surge in demand for rare earths. In addition, the application proportion of rare earths in energy-saving household appliances (variable frequency air conditioners) and industrial motors continues to expand. In 2023, the global wind power installed capacity increased by 101.1% year-on-year, further driving demand.
2. National Defense and High end Manufacturing
Rare earth alloys are used in fighter aircraft bodies and missile guidance systems, rare earth luminescent materials are used in radar screens, and superconducting materials support cutting-edge communication technology. China is constantly making breakthroughs in the research and development of rare earth hydrogen storage materials (in the field of hydrogen energy), magnetic refrigeration technology, and other cutting-edge fields. For example, the Li Baogou team at Baotou Rare Earth Research Institute is promoting rare earth waste recycling and comprehensive utilization technology.
3. Green transformation and circular economy
China has guided the recycling and reuse of rare earths through policies, with a production of 82400 tons of praseodymium neodymium oxide in 2025, a year-on-year increase of 19.39%. However, the recovery rate of low-grade rare earths is still insufficient, and complex ore purification technologies need to be overcome.