Thirty years of giant change in the strategic road of Chinese Neodymium

Rare earth permanent magnet material is the third -generation permanent magnet material that has been successfully developed after the metal system and iron oxygen system. Since its inception in the 1960s, it has been developing at a high speed. It can be divided into four generations in the order of its development and application: the first generation is SMCO5 system material; the second generation is the SM2CO17 -series magnet; The successful development of the tannin boron (NDFEB) is magnetic material; the fourth generation is a rare earth iron nitrogen (RE-Fe-N) and the RE-Fe-C system.

The advent of the Neodymium has injected new vitality and vitality into the high -tech field of rare earth. The magnetic capacity of the Neodymium iron boron magnetic is regarded as an irreplaceable "permanent magnet king" that is irreplaceable in the next 20 years. It is widely used in the electronics and machinery industries with its excellent performance.

Start up to be trapped patent bureaus

The development of China Neodymium is divided into three stages: 1983-1996 mainly followed the development of foreign technology. From 1996-2005, the problem of large-scale production issues started industrial mass production. From 2005, it has been committed to solving high-performance magnetic regulation, rare earth balance, Use the problem of service and materials.

On August 17, 2012, Japan's Hitachi Metal and its sintering tin Neodymium magnetic factory Hitachi Metal North Carolina, which was established in the United States, applied to the US International Trade Commission (ITC). 29 companies around the world launched the "337 Survey".

At that time, there were more than 200 Neodymium manufacturers in our country, and nearly 30 companies with an annual production capacity of more than 1,000 tons. However, only Chinese companies with Hitachi Metal Patent permits are eight companies including Beijing Zhong Ke San Huan High-Tech Co., Ltd., Ningbo Yunsheng Co., Ltd.  Advanced Technology & Materials Co., Ltd., Jing Ci Material Science Co., Ltd., Thinova MagnetCo., Ltd, Yantai Zhenghai Hi-Tech Co., Ltd., Ningbo Jinji Strong Magnetic Material Co., Ltd. and Earth-Panda Co., Ltd.

In 2014, the output of Chinese Neodymium was about 80,000 tons, of which the output of patent permits was about 20,000 tons, and the remaining 60,000 tons were digested by 30,000 to 40,000 tons in the domestic market. The remaining 20,000 to 30,000 tons cannot be sold to high-end markets abroad due to patent restrictions.

Most of China's Neodymium companies have been "blocked" by Hitachi metal patent rights, and they will form 8 monopoly situations in China. "No right" enterprises face the severe test of survival rights and market share. The incident has developed here, and the Chinese Citroe Bora Enterprise, which has been passive for the year, is determined to break the patent blockade of Hitachi metal.

Competition relying on quantitatives is deeply trapped in the low-end market

Benefiting from the advantages of rare earth reserves, the scale of China's Neodymium industry occupies the forefront internationally.

In 2000, the production of Neodymium in my country exceeded Japan, becoming the largest producer of Neodymium magnetic body in the world; from 2000 to 2015, the average annual compound growth rate of Chinese Neodymium output was as high as 25%; in 2015, my country’s Neodymium. The output of Neodymium is 127,000 tons, accounting for about 90% of the global total output.

On the other hand, after 30 years of development, our country's Neodymium magnet industry has formed a complete industrial system.

Although the output of rare earth permanent magnets in my country is relatively large, there is still a large gap in production efficiency, automation, and productivity rate compared with Japan and Germany. In addition, the large head of the Neodymium products in my country is low-end, and the high-performance Neodymium material accounts for relatively low.

In recent years, about 75% of the illegal Neodymium has been applied to traditional fields such as electro-acoustic devices, magnetic selections, and consumer electronics, while only 1/4 of new applications such as inverter air conditioners, new energy vehicles, and energy-saving elevators.

As a national strategic material, it seems that the growth space is huge, but how to cut into the high-end market is also full of challenges.

Actively deploy new energy to seize the high-end market

It is reported that 60% of high-end Neodymium is used on cars, and the driving effect of cars on rare earth permanent magnets is obvious.

In order to change the passive situation of my country's rare earth permanent magnet enterprises in the high-end market, related industry associations and enterprises are actively seeking change.

On January 5, 2018, the China Automobile Industry Association and the China Rare Earth Industry Association jointly held a new energy vehicle driving motor for the upstream and downstream cooperation mechanism and establishment of a conference. Representatives of more than 20 units including Xiamen Tungsten and Harbin Institute of Technology attended the meeting. Director of the Department of Raw Materials Industry pointed out that driving motors are the "heart" of new energy vehicles, while rare earth permanent magnet materials are the first choice for driving motors.

At the same time, leading enterprises in China's rare earth permanent magnet industry directly use strength high-end applications such as motors and new energy.

The development of my country's rare earth permanent magnet industry is gratifying. In 2018, new electric vehicles, energy-saving appliances, electric tools, industrial robots and other industries have provided important support for the development of rare earth permanent magnet materials industry.

After 30 years of difficult steps, China’s  Neodymium enterprise finally slowly faded away the label of“ resource output type ”and gradually developed into the national strategic industry.