Editor's Note: A review of the H1 rare earth market shows it was a case of "you reap what you sow." The rare earth sector drifted higher overall, with performance varying across products. Pr-Nd oxide gained 22.42% in H1, dysprosium oxide rose 5.97%, and terbium oxide gained 8.37%. With a rising tide lifting all boats, higher rare earth prices directly boosted operating earnings at companies along the industry chain. According to SMM, the 10 rare earth-related companies that have disclosed semi-annual reports, preliminary results, or earnings forecasts all achieved varying degrees of earnings growth in H1. The market is now awaiting demand to materialize in the traditional peak season. As summer gives way to autumn, can rare earth prices extend their H1 gains in H2, and what market conditions will upstream and downstream players in the rare earth industry chain face? Multiple Rare Earth Companies Report Positive H1 Results The H1 earnings forecast disclosed by Zhongxi Nonferrous Metals on the evening of July 13 showed that, based on preliminary estimates by the company's financial department, the company expects net profit attributable to shareholders of the listed company in H1 2026 to be RMB370 million to RMB430 million, an increase of RMB297.5013 million to RMB357.5013 million compared with the same period last year, up 410.35% to 493.11% YoY. The company also expects net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in H1 2026 to be RMB368.0027 million to RMB428.0027 million, an increase of RMB276.2326 million to RMB336.2326 million compared with the same period last year, up 301.00% to 366.39% YoY. As for the main reasons for the expected earnings growth, Zhongxi Nonferrous Metals said: (1) In H1 2026, the supply-demand pattern of the rare earth industry changed and prices of major rare earth products rose YoY. By adopting an innovative integrated operating model to coordinate raw material procurement for rare earth separation plants and sales of all products, and by analyzing market supply-demand changes to dynamically adjust its product output mix, the company significantly increased the operating value of its core rare earth business. (2) The company made substantial progress in loss-making enterprise restructuring and deepened reform, with resources further concentrated in its core main business and competitive operations, and losses at loss-making enterprises narrowed significantly YoY. (3) Its associated company Dabaoshan Company maintained stable and high production; sales volumes and prices of copper and sulfur products both increased YoY, boosting Dabaoshan's profit, and the company's investment income recognized under the equity method increased accordingly. The H1 earnings forecast disclosed by Huahong Technology on the evening of July 13 showed that the company expects net profit attributable to the parent company in H1 2026 to be RMB320 million to RMB360 million, up 301.84%-352.08% YoY. Regarding the reasons for the performance change, Huahong Technology said: In H1 2026, benefiting from industry policies and a pickup in downstream demand, prices of major rare earth products in China climbed steadily. The company's rare earth resource comprehensive utilization segment seized market opportunities, fully leveraged its comprehensive advantages in capacity scale, cost control, and process technology, and continuously optimized supply, production, and sales coordination and inventory management strategies, effectively driving the full release of the segment's profitability. The company continued to deepen its layout across the rare earth industry chain, while its downstream rare earth permanent magnet materials business expanded steadily. Benefiting from steady demand in end-use sectors such as NEVs, wind power, and industrial automation, this business segment continued to expand its business scale, with revenue and product mix continuously optimized, and became an important supplement to performance growth. The semi-annual earnings forecast released by Xiamen Tungsten showed that, according to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026 was expected to be approximately 2,216.0318 million yuan, up approximately 1,246.7133 million yuan from the same period last year, equivalent to an increase of approximately 128.62% YoY. According to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026, excluding non-recurring gains and losses, was expected to be approximately 2,176.0263 million yuan, up approximately 1,253.4882 million yuan from the same period last year, equivalent to an increase of approximately 135.87% YoY. Regarding the main reasons for the expected performance growth in the period, Xiamen Tungsten explained: In H1, facing a market environment in which prices of major raw materials such as tungsten, cobalt, lithium carbonate, and Pr-Nd oxide rose YoY and swung wildly, the company responded proactively, dynamically adjusted its operating strategy, and drove a corresponding increase in product selling prices. Meanwhile, it continued to improve product quality and market development capabilities, and sales of main products such as alloy bars, cutting tools, power battery cathode materials, and magnetic materials grew steadily. Profitability of the company's three core businesses—tungsten and molybdenum, new energy materials, and rare earths—improved to varying degrees. Ningbo Yunsheng disclosed its earnings forecast on the evening of July 14, which showed that, according to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026 was expected to be between 240 million yuan and 310 million yuan, an increase of between 132.1657 million yuan and 202.1657 million yuan compared with the same period last year (statutorily disclosed data), up 122.56% to 187.48% YoY. Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss for H1 2026 is expected to be RMB210 million to RMB280 million, an increase of RMB121.3954 million to RMB191.3954 million compared with the same period last year (statutorily disclosed data), up 137.01% to 216.01% YoY. Ningbo Yunsheng explained that the main reasons for the projected profit increase were as follows: during the reporting period, the company adhered to customer demand orientation, focused deeply on NEV, consumer electronics, industrial and other application fields, actively explored emerging and regional markets, seized development opportunities from new projects, continuously optimized its business mix, and increased the share of revenue from outside China. Meanwhile, the company continued to deepen refined management, which lifted product gross margins and thus increased net profit. The H1 earnings forecast released by China Northern Rare Earth shows that, based on a preliminary estimate by the company's finance department, net profit attributable to owners of the parent company for H1 2026 is expected to be RMB1.98 billion to RMB2.06 billion, an increase of RMB1.05 billion to RMB1.13 billion compared with the same period last year (statutorily disclosed data), up 112.74% to 121.33% YoY. Net profit attributable to owners of the parent company after deducting non-recurring profit or loss for H1 2026 is expected to be RMB1.99 billion to RMB2.07 billion, an increase of RMB1.093 billion to RMB1.173 billion compared with the same period last year (statutorily disclosed data), up 121.90% to 130.82% YoY. Main Reasons for the Projected Profit Increase in the Period: In H1 2026, the company supported the national rare earth resource strategy and fully implemented safety and control requirements across the rare earth industry chain. Driven by factors such as constrained raw material supply and the multi-point release and sustained growth of downstream demand, rare earth product prices showed an overall strengthening trend and consolidated. Centering on its annual production and operation targets, the company planned comprehensively and implemented a combination of measures, strengthened overall budget management, coordinated cost reduction, quality improvement and efficiency gains, scientifically organized production and scheduling, intensified marketing operations, deepened reform and innovation, strengthened group management and risk prevention and control, promoted the high-quality in-depth integration of professional management, lean management and 5S management, advanced key project construction, accelerated the development of new quality productive forces through management and research innovation, and, with sound industry chain value creation capability and core competitiveness, provided solid support and guarantee for its good operating results. The company scientifically refined its production organization and operations; production of rare earth smelting and separation products, rare earth metal products and new rare earth materials all reached record highs for the same period in history; the company's subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. achieved operating revenue of approximately RMB9.5 billion in H1, up about 107% YoY, maintaining growth momentum for three consecutive years; its subsidiary Inner Mongolia Xikeao Hydrogen Storage Alloy Co., Ltd. officially put its first batch of 1,000 hydrogen-powered two-wheelers into operation in Baotou, with cumulative safe driving mileage reaching 170,000 km; the project has achieved notable demonstration results. The Company persisted in benchmarking against advanced peers both internally and externally to tap internal potential, strengthened refined management, and significantly improved a number of economic and technical indicators. It implemented targeted measures across each business segment: the smelting and separation segment overcame new changes in production costs brought by rising raw and auxiliary material prices, effectively controlled cost fluctuations, scientifically organized production and scheduling, and ensured new product supply needs; the rare earth metals segment took the strengthening of lean production concepts as its focus, used digital and intelligent means to further strengthen on-site process operation management, and drove new breakthroughs in economic and technical indicators such as quality and material consumption ratio; the rare earth new materials and applications segment fully leveraged its new capacity advantage, precisely matched customer demand, and achieved new progress in driving sales through production. It deepened industry chain coordination and linkage, and on the basis of ensuring stable product supply, consolidated the foundation of downstream customer cooperation. Shenghe Resources released its H1 earnings preview on July 10, which showed: according to preliminary estimates by the company's finance department, net profit attributable to shareholders of the parent company for H1 2026 is expected to be 800 million yuan to 930 million yuan, an increase of 423.0938 million yuan to 553.0938 million yuan compared to the same period last year, up 112.25% to 146.75% YoY. Net profit attributable to shareholders of the parent company excluding non-recurring items for H1 2026 is expected to be 790 million yuan to 920 million yuan, an increase of 426.487 million yuan to 556.487 million yuan compared to the same period last year, up 117.32% to 153.09% YoY. Regarding the main reasons for the expected earnings growth in the current period, Shenghe Resources said: During the reporting period, affected by factors such as rare earth industry policies and downstream demand, overall market demand for major rare earth products improved, and product prices and average selling prices rose significantly compared to the previous year. The company seized market opportunities, optimized its production and sales mix, strengthened management empowerment and cost control, and thereby drove substantial earnings growth. China Rare Earth said in its recently released semi-annual report: In H1, the supply-demand pattern of the rare earth industry continued to be adjusted and optimized. Supported by multiple favorable factors such as rare earth industry policies and stronger downstream demand, the market overall trended upward, and Pr-Nd product prices rose significantly compared to the same period last year. The company followed its annual work deployment, anchored its goals and added more pressure, seized the momentum and strived for excellence, strengthened Party building leadership, and focused on six key tasks including resource assurance, efficient operations, technological innovation, project construction, deepening reform, and capacity building. It made targeted efforts and achieved notable phased results, simultaneously improved operational quality and efficiency, successfully completed all operational targets and tasks, and vigorously created a new situation of high-quality leapfrog development, laying the foundation for a good start to the 15th Five-Year Plan period. In H1 , the company achieved revenue of 1.647 billion yuan, net profit of 237 million yuan attributable to shareholders of the listed company, up 46.53% YoY, and net profit of 240 million yuan attributable to shareholders of the listed company after deducting non-recurring gains and losses, up 55.49% YoY. The H1 earnings forecast disclosed by Tianhe Magnetics on July 9 showed that, based on preliminary estimates by its financial department, the company expected net profit attributable to owners of the parent company for H1 2026 to be between 73 million yuan and 93 million yuan, an increase of 19.5448 million yuan to 39.5448 million yuan compared with the same period last year (statutory disclosed data), up 36.56% to 73.98% YoY. It also expected net profit attributable to owners of the parent company after deducting non-recurring gains and losses for H1 2026 to be between 68 million yuan and 88 million yuan, an increase of 32.5723 million yuan to 52.5723 million yuan compared with the same period last year (statutory disclosed data), up 91.94% to 148.39% YoY. Regarding the main reasons for the expected H1 profit growth, Tianhe Magnetics said: 1. In H1, raw material prices fluctuated at high levels overall. The company optimized pricing strategies for some existing and new orders and raised product selling prices. 2. In 2026, the company proactively seized market opportunities, conducted sales efforts centered on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieved dual-driver growth in both international and domestic markets, and delivered notable results in market development. Overall operating revenue is expected to increase by about 30% YoY, with domestic business revenue expected to increase by about 50% YoY. 3. During the reporting period, non-recurring gains and losses are expected to have an impact of approximately 5 million yuan on net profit, compared with after-tax non-recurring gains and losses of 18.0275 million yuan in the same period last year. The H1 earnings forecast released by JL MAG Rare-Earth on July 1 showed that net profit attributable to the parent company for H1 2026 was expected to be between 400 million yuan and 460 million yuan, up 31.17%-50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth said in its announcement: 1. In H1 2026, the company's management upheld the annual operating policy of "staying law-abiding and compliant, remaining customer-oriented, focusing on the core magnetic materials business, building 20,000 mt of capacity on schedule, proactively positioning in motor rotors for embodied robots, and scaling new heights." Through technological innovation, organizational optimization, digital development, lean management, and other measures, the company made every effort to ensure delivery to customers in accordance with contracts while achieving steady development of its operating performance. The company continued to consolidate its leading position in new energy, energy conservation and environmental protection, actively expanded into emerging markets, and expects operating revenue to increase by about 30% YoY. Within this, revenue in the NEV and auto parts segment is expected to increase by about 30% YoY; revenue in the robotics and industrial servo motor segment is expected to increase by about 90% YoY, and embodied robot motor rotor products have already seen small-batch deliveries. 2. During the reporting period, the impact of non-recurring items on net profit is expected to be approximately RMB32 million, compared with after-tax non-recurring items of RMB70.9405 million in the same period last year. 3. In the current reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related share-based payment expenses, financial expenses, and other expenses totaled approximately RMB121 million; no such expenses occurred in the same period last year. The H1 2026 results flash released by Zhong Ke San Huan on the evening of July 20 showed that, in H1, the company achieved operating revenue of RMB3,613.7721 million, up 23.67% YoY; total profit of RMB102.8001 million, up 1.18% YoY; net profit attributable to shareholders of the listed company of RMB49.2189 million, up 11.88% from the same period last year; and, after deducting non-recurring items such as government subsidies, net profit attributable to shareholders of the listed company excluding non-recurring items of RMB32.3035 million, up 2.25% from the same period last year. Zhong Ke San Huan's semiannual results flash showed that in H1 2026, amid increasingly intense market competition and a complex and volatile external environment, with the joint efforts of all employees, the company's core product sales volume grew YoY; through cost-reduction measures such as optimizing formulation processes and reducing heavy rare earth usage, it drove the overall gross margin up YoY. Some subsidiaries improved operations, reducing losses or turning losses into profits; meanwhile, the company further improved inventory management, optimized the inventory structure of key raw materials, and reduced asset impairment losses YoY. Affected by the appreciation of the RMB against the US dollar and the euro, the company incurred foreign exchange losses during the reporting period, and financial expenses increased YoY, partially offsetting profit growth. In H1 This Year, Pr-Nd Oxide Rose 22.42%; Dysprosium Oxide and Terbium Oxide Both Increased In H1 2026, the rare earth oxide market experienced a "sharp rise—plunge—recovery—further divergence" roller-coaster ride. Pr-Nd oxide prices were the most volatile; dysprosium oxide and terbium oxide prices first rose, then fell, and then rebounded. A review of the H1 price trends of Pr-Nd oxide, dysprosium oxide, and terbium oxide shows the following: Pr-Nd oxide's average price on June 30 was 742,500 yuan/mt, up 136,000 yuan/mt from 606,500 yuan/mt on December 31, 2025, an H1 increase of 22.42%. Meanwhile, the H1 average daily price of Pr-Nd oxide this year was 740,530.17 yuan/mt, up 3,095,771.8 yuan/mt YoY from 430,952.99 yuan/mt in H1 2025, representing a YoY increase of 71.84%. Dysprosium oxide's average price on June 30 was 1,420 yuan/kg, up 80 yuan/kg from 1,340 yuan/kg on December 31, 2025, an H1 increase of 5.97%. Comparing dysprosium oxide's average daily price of 1,394.09 yuan/kg in H1 this year with 1,660.26 yuan/kg in H1 2025 shows that its H1 average daily price fell 16.03% YoY. Terbium oxide's average price on June 30 was 6,475 yuan/kg, up 500 yuan/kg from 5,975 yuan/kg on December 31, 2025, an H1 increase of 8.37%. Comparing terbium oxide's average daily price of 6,200.26 yuan/kg in H1 this year with 6,634.62 yuan/kg in H1 2025 shows that its H1 average daily price fell 6.55% YoY. Since the start of August, the rare earth market has remained in a sideways pattern amid the tug-of-war between upstream and downstream. At present, downstream inquiry and buying interest is limited, inquiry activity remains relatively thin, overall trading sentiment is sluggish, and rare earth prices have continued to diverge: in the Pr-Nd market, affected by continued pullbacks in futures prices, some suppliers have slightly lowered their offers; medium-heavy rare earth prices have shown strong resilience and remained broadly stable. In the short term, affected by the stalemate in market trading, Pr-Nd product prices are expected to continue moving sideways. Over the medium and long term, SMM expects that the overall supply of Pr-Nd oxide in 2026 will remain on the tight side, but with new capacity gradually coming on stream in H2 and previously uncommissioned smelting and separation capacity planned to start production, pressure from a loosening supply side may emerge later on. On the demand side, rising toll-processing orders at metal plants in Inner Mongolia will provide some rigid demand support for Pr-Nd oxide. As the traditional "September-October peak season" approaches, the market holds strong expectations for downstream restocking and stockpiling, and end-use demand still has a considerable number of NEV orders to be released in H2. The industrial robot sector remains buoyant, and demand for rare earth permanent magnets is expected to show a notable YoY increase this year. Meanwhile, although emerging sectors such as humanoid robots and the low-altitude economy are developing rapidly and have ample long-term growth potential, they are still in the early stages of industry development, and their actual incremental contribution to rare earth permanent magnets remains limited for now. Whether peak-season demand expectations materialize and the pace of new capacity release will be key variables shaping rare earth market trends ahead. Views from Various Parties According to a Datong Securities research report from August 11, rare earth spot prices pulled back in the short term and downstream magnetic material enterprises were cautious in procurement. However, with supply constrained by three factors—tighter mining quotas, escalated export controls, and production cuts in scrap recycling—along with restocking demand outside China, the strategic revaluation logic had not been shaken. Overall, policy controls and demand from emerging industries drove the minor metals sector; the commodity and financial attributes of scarce resources reinforced each other, and the valuation recovery rally continued. A China Securities research report said, citing data from the General Administration of Customs, that rare earth exports fell markedly in July while average prices rose. July rare earth exports were 4,223.5 mt, down 29.54% YoY and 17.26% MoM, the lowest monthly level since March; cumulative January-July exports were 34,706.3 mt, down 10% YoY. However, the corresponding average export price was $12.34/kg, surging 103.14% YoY, with the export mix tilting toward high-value medium-heavy rare earth products. Markets outside China accepted high-priced raw materials, and the tight global rare earth supply pattern continued. There was no incremental rare earth supply for now; separation enterprises were producing steadily; previously suspended enterprises had no plans to resume production for now; downstream rigid demand provided moderate support; and long-term demand expectations were improving. Rare earth prices are expected to consolidate on a strong note in the near term. A CITIC Securities research report said that, against a backdrop of quota constraints and falling imports, rare earth supply rigidity continued to strengthen. Affected by stricter tax policies, operating rates at scrap recycling enterprises remained persistently low. Rigid-demand restocking along the industry chain, together with the approaching peak season, is expected to drive a demand recovery. Emerging fields such as robotics, the low-altitude economy, and industrial motors are expected to open up long-term demand growth. The rare earth industry's supply-demand pattern may remain tight. Driven by rising prices, H1 earnings at rare earth industry chain companies are expected to beat expectations. CITIC Securities continued to recommend the strategic allocation value of the rare earth industry chain. Recommended Reading: For more fundamental, technical, and policy information on motor raw materials such as rare earth, copper, and aluminum, please join: ~

KSH International has commenced production at a new 5,000 t/y upcast copper rod facility in Pune. The project supports backward integration and allows the company to recycle part of its own copper process scrap into rods for captive consumption, replacing a model under which process scrap was largely sold externally.

【SMM Tungsten Express】US scrap trader Tungco plans to build a 3,000 tpa tungsten scrap recycling plant in Kentucky, codenamed "Project 74." The company is seeking public subsidies and promoting the project under the "urban mining" concept to strengthen domestic tungsten recycling capacity in the United States.

Second-life battery cell market remained steady overall this week. Upstream raw material cost support weakened. Lithium carbonate briefly rebounded during the week before its overall center shifted lower. Nickel sulphate futures ran steady, while cobalt sulphate continued its sustained downward trend. The raw material side failed to provide effective support for second-life battery cell prices. The supply side was notably impacted by the MIIT Announcement No. 20 on July 30. The document abolished the previous clauses related to power battery second-life applications, removed over a hundred listed second-life enterprises from the compliance catalog, and explicitly prohibited the use of retired power batteries in two-wheeler EV applications. Driven by the policy, dismantled second-life battery cells accelerated their flow into recycling and smelting channels. Quotations for dismantled supply fell under pressure, with some specifications' prices gradually converging toward scrap recycling prices, signifying a structural reshaping of the pricing logic for second-life battery cells. On the demand side, using second-life batteries in the small power sector was already a violation. The new policy means this gray market has been completely eliminated at the regulatory level. The energy storage scenario has become the core demand support for second-life battery cells. Energy storage demand remained stable, but downstream acceptance of high prices was limited, with procurement primarily driven by rigid demand and insufficient momentum for price increases. In the short term, the market is expected to maintain stable operation.

Atlantic Copper plans to inaugurate its CirCular project in Huelva on September 14. The facility is designed to process up to 60,000 tonnes per year of non-ferrous material derived from waste electrical and electronic equipment, recovering copper, gold, silver, palladium, platinum, tin and nickel. Earlier company disclosures placed investment at more than €400 million, while a recent local report cited €550 million, possibly reflecting a different project scope.

Recently, the NDRC is working with relevant departments to accelerate the study and formulation of the Implementation Plan for the Strategy of Expanding Domestic Demand (2026-2030). Moving forward, the NDRC will work with relevant departments to effectively expand China's domestic demand with greater intensity and more concrete measures.

The performance of rare earth market varieties diverged markedly in July. Pr-Nd oxide prices followed an overall “rally early on before pulling back, with weakness at month-end” pattern, most directly affected by sentiment driven by negative news. Terbium oxide experienced a reasonable pullback in the second half, but the surge in the first half still lifted its price center. Dysprosium oxide was stable, not following the sharp ups and downs, and remained firm overall. Early in the month, the rare earth market reversed its prior weakness, experiencing a wave of concentrated upward momentum. The core driver was a top-tier player entering the market to purchase, boosting sentiment, coupled with production cuts and shutdowns at raw ore separation and scrap recycling enterprises making low-priced supplies hard to find, prompting upstream suppliers to hold back from selling and hold prices firm. Pr-Nd oxide, as a bellwether, saw prices quickly rebound from around 743,000-747,000 yuan/mt at the start of the month to briefly touch a range of 765,000-770,000 yuan/mt. Terbium oxide was particularly outstanding; affected by tight supply and purchases from major plants, the largest single-day gain in the first half reached 125,000 yuan/mt. However, the upward momentum failed to sustain throughout the month. From mid-to-late month, the traditional high-temperature holiday for downstream users led to a marked decline in operating rates at motor plants and end-user magnetic material enterprises. Magnetic material enterprises were less receptive to high-priced raw materials, shifting to purchasing on a rigid demand basis at lower prices, which cooled trading activity. Toward month-end, negative news combined with a sharp decline in Pr-Nd oxide futures dealt a blow, causing spot market sentiment to turn sharply negative; market quoting and inquiry activity was weak, with Pr-Nd oxide traded prices falling below 750,000 yuan/mt. From the perspective of driving factors, supply-side contraction provided bottom support—production cuts and shutdowns at some raw ore separation and scrap recycling plants tightened spot availability, and upstream players still had the confidence to hold prices firm, limiting the scope for further deep declines. But the demand-side off-season effect capped upside potential; high-temperature holidays caused insufficient downstream operating rates, and magnetic material enterprises purchased based on sales, resulting in a stalemate tug-of-war between upstream and downstream. Meanwhile, sentiment transmission from negative news accelerated fluctuations, triggering a rapid pullback in Pr-Nd oxide prices. On the industry cost front, China Northern Rare Earth and Bao Gang United Steel set the Q3 rare earth concentrates transaction price at 38,565 yuan/mt, down 0.62% QoQ, ending a streak of seven consecutive quarterly increases. Looking ahead to August, the rare earth market is likely to continue its game of push and pull. The supply of rare earth oxides is expected to tighten in the short term, with upstream major producers still holding strong pricing power. Additionally, end-use consumption from NEVs, wind power, and other sectors is expected to see order growth during the traditional peak season in H2. However, August remains a high-temperature off-season, meaning that a noticeable recovery in demand still needs time, and macro uncertainties persist. Mainstream products such as Pr-Nd oxide are expected to consolidate around current levels in the near term, with limited downside room supported by costs. Any rise, however, will need to wait for a substantial recovery in downstream demand and an improvement in macro sentiment.

In 2026, the global lead-acid battery industry maintains steady growth, holding irreplaceable advantages in starting, industrial, and energy storage applications. Secondary lead has become the core raw material supply, and green recycling and compliant manufacturing have become the industry baseline. The global industry chain is accelerating its shift to Southeast Asia, where Vietnam, leveraging its motorcycle and automobile ownership, manufacturing supporting facilities, and trade facilitation advantages, has become a strategic hub for lead smelting, battery production, and recycling. Meanwhile, the lead industry chain faces multiple challenges such as raw material supply-demand balance, international trade compliance, upgrading environmental standards, iteration of advanced lead battery technologies, supply chain security, and cost control. To build a global lead industry exchange and cooperation platform and promote collaborative innovation across the entire chain of lead ore, primary lead, secondary lead, lead-acid batteries, equipment, and auxiliary materials, the 2026 SMM Global Lead-Acid Battery Supply Chain Innovation Conference is set to take place in Ho Chi Minh City. SMM, in partnership with Hunan Ruiyi Resources and Environment Technology Co., Ltd. , invites you to join the conference. The event will focus on industrial policies, market trends, technological upgrades, circular economy, and the joint development of the global supply chain, helping enterprises seize opportunities and achieve win-win collaboration. Click to register now for the conference, and join us in witnessing and participating in this extraordinary and far-reaching industry event, creating a brilliant new chapter together! 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[Pr-Nd Oxide Falls Below 750,000 Mark, Scrap Recycling Side Sees Increased Procurement Difficulty] Yesterday, affected by fluctuations in futures prices, offers in the Pr-Nd oxide market pulled back further after the midday session. Suppliers' inventory was poor, willingness to quote low prices was low, downstream metal plants showed heavy wait-and-see sentiment, and transaction activity in the Pr-Nd market was sluggish; for medium-heavy rare earths, downstream demand remained sluggish, but suppliers' offers remained firm, and dysprosium oxide and terbium oxide prices continued to stay stable.

On July 27, shares of China Northern Rare Earth rose, closing up 1.15% at 39.48 yuan per share. In other news, the investor relations activity record for June 2026, announced by China Northern Rare Earth on July 21, showed: Q: What is the progress of the green smelting upgrade and transformation project? What benefits will the project bring to the company upon completion? China Northern Rare Earth responded: The company has invested in and constructed the new-generation rare earth green mining, beneficiation and smelting upgrade and transformation project. Phase I has already been put into production, with the production line fully connected; for Phase II, the main structure of the main process building has been completed, and equipment installation is underway. The project adopts industry-leading new processes, technologies and equipment to build a green, intelligent, intensive and high-end rare earth raw material industrial base. By creating a complete automated production line for rare earth smelting and adopting various intelligent equipment systems, the project enhances the intelligent level of green rare earth smelting equipment, enabling high-quality, high-efficiency, low-consumption and flexible intelligent production. It continuously improves the comprehensive utilization level of Bayan Obo resources, actively fosters a higher-quality, more efficient, better-structured, lower-carbon and safer industrial development landscape, effectively achieves the safe and sustainable development of the industry chain and supply chain, and further strengthens the competitive advantage of China's rare earth industry. Upon completion, the project is expected to reduce acid and alkali unit consumption by over 20%, reduce fresh water usage by 30%, and save approximately 15% of energy, effectively raising the level of intensive, efficient, low-carbon and environmentally sound utilization of rare earth resources. It will significantly promote the sustainable, high-quality development of the rare earth industry and downstream application fields, make positive contributions to regional economic and social development, and deliver favorable social benefits. Q: How large are the medium-heavy rare earth reserves in the Bayan Obo mine? China Northern Rare Earth responded: The total medium-heavy rare earth reserves in the Bayan Obo mine are very substantial. In light of changes in the global rare earth resource supply landscape, the company is committed to the research and application of all rare earth elements and categories. It has recently increased investments in medium-heavy rare earths, continuously pursuing technological innovation and boosting R&D spending to provide downstream clients with cost-effective products or solutions. Q: What is the company's sales model for rare earth products? How are prices determined? China Northern Rare Earth responded: The company's products are mainly divided into rare earth raw material products, rare earth new material products, and rare earth end-use application products. Among these, rare earth raw material products include rare earth salts, rare earth oxides and rare earth metals, which serve as the main production raw materials for downstream rare earth new material and new material product processing enterprises. Rare earth new material products include rare earth magnetic materials, polishing materials, hydrogen storage materials, catalytic materials, and rare earth alloys. The company's rare earth end-use application products primarily consist of rare earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen storage cylinders, and hydrogen-powered two-wheelers. The company generally adopts sales models such as long-term agreements and retail, with long-term agreements accounting for over 50%. Its selling prices are set based on market demand, market price fluctuations, and actual transactions, with metal prices also referencing those from the Baotou Rare Earth Products Exchange. Question: How does the company view future rare earth product prices? What are the downstream applications of rare earth? China Northern Rare Earth responded: Against the backdrop of global carbon neutrality, the vigorous growth of new energy industries and technological innovation has brought new development opportunities for rare earth as a key element of new quality productive forces. Rare earth, recognized as a critical mineral factor globally, has become a vital pillar for future industries. Rare earth product prices are mainly influenced by a combination of factors such as market supply, demand, and market expectations. In the short term, due to the pace of industry supply and demand and downstream procurement cycles, rare earth prices are expected to remain range-bound and fluctuate. In the medium term, the supply pattern in the rare earth industry will remain orderly and controllable, with prices generally running steadily. In the long term, as incremental demand from new energy, high-end equipment, humanoid robots, and other sectors continues to be released and steadily develop, rare earth prices will receive strong support. Against the broader backdrop of carbon neutrality, rare earth connects with manufacturing upgrades, technological innovation, global industry chain adjustments, and national development strategies. The long-term development of the rare earth industry is stable and positive. With the advancement of carbon peak and carbon neutrality, the core demand for rare earth is shifting towards green low-carbon new energy and high-end manufacturing. High-performance rare earth permanent magnets are used in new energy vehicle drive motors, new energy ship power systems, electric aircraft, eVTOL, etc. Some MLCC (multilayer ceramic capacitors) also add trace amounts of rare earth oxides for doping modification, driving continuous growth in rare earth demand. Question: What are the company's plans for extending its industry chain? Will it further expand into downstream end-use applications? China Northern Rare Earth responded: After years of development, the company has taken the lead in the industry to become an integrated, group-level publicly listed firm that combines rare earth smelting and separation, functional materials, application products, scientific research, and trade. It has formed an industrial structure based on rare earth resources, centered on smelting and separation, focused on new materials, and oriented towards expanding into end-use applications. Relying on an innovation-driven development strategy, it continuously promotes industrial structure adjustment, transformation and upgrading, achieving integrated development across the upstream, midstream, and downstream of rare earth, and building an industry-leading competitive advantage across the entire industry chain. The company has deployed six major industries: magnetic materials, polishing materials, energy storage materials, catalytic additives, high-purity metals and alloys, and optical functional materials. It has: (1) established the rare earth permanent magnet material–permanent magnet motor industry chain, continuously enhancing the production capacity of permanent magnet motors; (2) established the rare earth hydrogen storage material–solid-state hydrogen storage industry chain, focusing on solid-state hydrogen storage applications such as hydrogen fuel two-wheelers, solid-state hydrogen storage forklifts, and hydrogen refueling stations, to promote industrial application; (3) established the rare earth alloy–intermediate alloys of rare earth iron, rare earth aluminum-magnesium industry chain, constructing a demonstration line for large-scale production of high-purity rare earth metals and targets, driving breakthroughs in applications of rare earth aluminum-magnesium alloys in advanced rail transit and lightweight profiles; (4) consolidated and expanded the leading position of the rare earth polishing materials industry in and outside China, breaking through production technologies for high-end products such as high-performance rare earth polishing powders and polishing for high-grade glass substrates, and breaking foreign monopolies; (5) established the rare earth catalytic material–exhaust purification functional device industry chain, focusing on industrial exhaust gas treatment, automotive exhaust gas purification, volatile organic compound (VOC) treatment, and petrochemicals to achieve industrialization; and (6) expanded the application fields of rare earth optical functional materials, strengthening the commercialization and promotion of rare earth multi-color reflective thermal insulation coatings, rare earth infrared radiation materials, and rare earth infrared heat storage and temperature-rise materials. For example: to address the poor thermal insulation of architectural glass, the company developed a rare-earth nano thermal-barrier coating that significantly reduces air-conditioning energy consumption; to mitigate heat accumulation on building exteriors and metal surfaces, the company developed a rare-earth multi-colour reflective thermal-insulation coating containing over 25% lanthanum-cerium compounds, effectively alleviating the heat-island effect; leveraging the unique photofunctional properties of light rare earths, the company developed polyester-based rare-earth functional fibres that enable smart thermal regulation such as heat storage, thermal insulation and UV shielding. Closely following market demand, the company continuously increases R&D investment, optimises product structure and performance, and meets the differentiated needs of downstream clients. Q: How is the company progressing in the utilisation of rare-earth secondary resources? China Northern Rare Earth responds: In the current context of green and low-carbon development, the prospects for rare-earth secondary resource utilisation are broad. The Rare Earth Regulations explicitly encourage and support enterprises in adopting advanced and applicable technologies and processes to conduct comprehensive utilisation of rare-earth secondary resources. Meanwhile, the continuously climbing demand for rare earths in fields such as NEVs, wind power and consumer electronics is also providing more resources for rare-earth secondary resource utilisation. For a long time, the company has been consistently focusing on secondary resource recycling and recovery. Regarding the return of scrap after the sale of Pr-Nd alloy, since 2022 the company has included a provision when signing supply agreements with downstream magnetic material enterprises: NdFeB enterprises using the company’s Pr-Nd alloy must return the production scrap generated in their own manufacturing processes to the company for resource recycling and recovery in accordance with market principles. At present, the company has established a circular loop spanning from raw ore to metal, magnetic material, and the recycling of scrap generated from magnetic material production. The company has made deep deployments in both the north and south. In the south, its controlled subsidiary Xinfeng Xinli has completed the main plant construction for its Phase-I NdFeB scrap recycling and utilisation project, and on-site equipment is undergoing orderly installation and commissioning; its rare-earth oxide comprehensive utilisation technological transformation project has received approval from the Department of Industry and Information Technology of Jiangxi Province. In the north, its controlled subsidiary Jinmeng Rare Earth has completed the “NdFeB Scrap Recycling Automated Production Line” project and the automation upgrade and renovation of the rare-earth concentrates separation line; both lines have commenced production, with notable capacity release. The company actively deploys and develops the rare-earth secondary resource utilisation industry, builds a 10kt-scale resource recycling capacity, achieves full-element rare-earth recycling and recovery through effective utilisation of secondary resources, and enhances the economic value of rare-earth elements. Q: What are the future development trends for polishing materials? China Northern Rare Earth responds: The global polishing fluid market is maintaining a steady growth trend. Demand for high-end semiconductor polishing materials, such as those for AI chips and memory-wafer capacity expansion, continues to rise. Going forward, high-end, refined and green development will become the main theme. The localisation rate of specialised polishing fluids for China’s high-end integrated circuits will increase significantly, while demand for polishing in conventional optics and panels will grow at a moderate pace. The company ranks first in the industry in both production and sales volume and market share in the rare earth polishing materials sector, with its three polishing powder production enterprises covering high-end, mid-end, and low-end segments. In the rare earth polishing materials field, the company has multiple advantages in scale, technology, and upstream-downstream industry chain integration, enabling it to quickly respond to demand from various downstream application fields, achieve steady growth in production and sales, and continuously increase the share of high-value products, holding a leading position in the industry. The company is deeply involved in national strategic scientific and technological breakthroughs, has led the formulation of multiple national and industry standards, completed national-level scientific research projects such as the “863 Program” and “Torch Program,” holds 4 invention patents and 6 utility model patents, and its core technical indicators have reached internationally advanced levels. With self-developed cutting-edge technology, its products are renowned in and outside China for uniform particle size, high polishing efficiency, and strong suspension, and are widely used in manufacturing fields such as liquid crystals, hard disk glass substrates, curved and flat cover glass for mobile phones, crystal and rhinestone ornaments, traditional optical and precision optical components, semiconductor photomasks, and integrated circuits. Q: What is the proportion of externally purchased ore in the company’s raw material supply? China Northern Rare Earth responded: The rare earth raw materials required for the company’s production mainly come from the Baiyun Obo mine, the world’s largest co-existing ore containing rare earths and other elements. The company’s proportion of externally purchased ore is very small and is dynamically adjusted based on production line conditions, market prices, downstream client demand, and other factors. China Northern Rare Earth’s semi-annual performance forecast shows: According to preliminary estimates by the company’s financial department, net profit attributable to shareholders of the parent company in H1 2026 is expected to be RMB1.98 billion to RMB2.06 billion, an increase of RMB1.05 billion to RMB1.13 billion compared with the same period last year (statutory disclosed data), up 112.74% to 121.33% YoY. Net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in H1 2026 is expected to be RMB1.99 billion to RMB2.07 billion, an increase of RMB1.093 billion to RMB1.173 billion compared with the same period last year (statutory disclosed data), up 121.90% to 130.82% YoY. The main reasons for the expected year-on-year increase in performance: In H1 2026, the company served the national rare earth resource strategy and fully implemented the requirements for security management and control of the rare earth industry chain. Affected by factors such as constrained raw material supply, multi-point release and sustained growth of downstream demand, rare earth product prices showed an overall strengthening trend and consolidated. Focusing on the annual production and operation targets, the company planned holistically and implemented comprehensive measures, strengthened overall budget management, coordinated cost reduction and efficiency improvement, scientifically arranged production scheduling, intensified marketing operations, deepened reform and innovation, enhanced group management and risk prevention and control, advanced the deep integration of professional management, lean management, and 5S management at a high quality, promoted the construction of key projects, accelerated the development of new quality productive forces through management and scientific research innovation, and provided solid support and assurance for achieving good operating results with strong industry chain value creation capability and core competitiveness. The Company scientifically refined production organization and operations, and the production of rare earth smelting and separation products, rare earth metal products, and rare earth new materials all reached record highs for the same period; the Company’s subsidiary, Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd., achieved revenue of approximately 9.5 billion yuan in H1, up about 107% YoY, maintaining growth for three consecutive years; its subsidiary Inner Mongolia Xi'ao Ke Hydrogen Storage Alloy Co., Ltd. officially put into operation the first batch of 1,000 hydrogen-powered two-wheelers in Baotou, with cumulative safe driving mileage reaching 170,000 km, achieving notable demonstration results. The Company persisted in benchmarking against advanced internal and external practices to tap internal potential, strengthened lean management, and significantly improved multiple economic and technical indicators. Based on precise measures for each business segment: the smelting and separation segment overcame new production cost changes brought by rising prices of raw and auxiliary materials, effectively managed cost fluctuations, scientifically organized production scheduling, and ensured supply to meet new product demand; the rare earth metal segment took the reinforcement of lean production concepts as a starting point, used digital and intelligent means to further strengthen on-site process operation management, and drove new breakthroughs in economic and technical indicators such as quality and material ratios; the rare earth new materials and applications segment fully leveraged the advantages of new capacity, precisely aligned with client needs, and achieved new progress in driving sales through production. Deepening industry chain synergy and coordination, while ensuring stable product supply, it solidified the foundation of downstream client cooperation. The Company closely followed market demand, strengthened marketing management, optimized sales structures, client credit evaluations, and product account period management, adjusted and shortened account periods by category, secured the fundamental base with long-term agreement orders, and met differentiated market demand through retail. Sales of rare earth metals and magnetic materials steadily increased, achieving full coverage of top-tier players in magnetic materials; sales of lanthanum-cerium products increased YoY, further digesting historical inventory; polishing material sales increased YoY; developed 5 new pieces of equipment and 20 customized and specialized new products, continuously expanding product application scenarios. The Company efficiently advanced key project construction, continuously enhancing its intelligent and informatization level. The first phase of the rare earth green smelting upgrade and transformation project has been put into operation, with all production lines fully connected, and the second phase construction progressing in an orderly manner; industry chain projects such as mergers and acquisitions, joint ventures, and capacity expansion for rare earth metals, magnetic material alloys, magnets, and secondary resource utilization are accelerating their implementation. The secondary resource utilization project achieved volume growth and quality-efficiency improvements; the Company's digital and intelligent transformation pace quickened, with its digital and intelligent level continuously improving. Regarding the 2026 business plan, China Northern Rare Earth announced in its 2025 annual report that: 2026 is the opening year of the "15th Five-Year Plan", and is an important year for the Company to advance high-quality development and accelerate building itself into a world-class rare earth leader. The company will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, focus on forging a strong sense of community for the Chinese nation, fully implement the guiding principles of the 20th National Congress of the Communist Party of China and all plenary sessions of the 20th Central Committee, and carry out the important speeches and instructions of General Secretary Xi Jinping on Inner Mongolia and the rare earth industry, as well as the decisions and deployments of higher authorities including the Inner Mongolia Autonomous Region and Baotou City. It will uphold the general principle of pursuing progress while ensuring stability, fully, accurately and comprehensively apply the new development philosophy, bravely fulfill its responsibilities and missions, steadily improve operational quality and efficiency, build an industrial system covering all elements and categories, promote the deep integration of technological and industrial innovation, accelerate the pace of deepening reforms, enhance modern governance capabilities, continuously strengthen core functions and improve core competitiveness, speed up the development into a world-leading rare earth enterprise, ensure a good start and solid first steps for the "15th Five-Year Plan" period, and make new and greater contributions to the construction of the "Two Rare Earth Bases." Main production and operation targets for 2026 (these targets are solely planned objectives; whether they can ultimately be achieved is uncertain and does not constitute a substantive commitment to investors; investors and relevant parties should maintain sufficient risk awareness and understand the differences among plans, forecasts, and commitments): achieve operating revenue of over 44 billion yuan and total profit of over 3.5 billion yuan. On the premise of meeting operational targets, employee income will be linked to corporate economic benefits and labor productivity in the same direction. A review of the SMM Pr-Nd oxide price trend in H1 shows that the average price of Pr-Nd oxide on June 30 was 742,500 yuan/mt, up 136,000 yuan/mt from 606,500 yuan/mt on December 31, 2025, representing an H1 increase of 22.42%. The average price of Pr-Nd oxide in H1 this year was 740,530.17 yuan/mt, compared with an average of 430,952.99 yuan/mt in H1 2025, a YoY rise of 309,577.18 yuan/mt, or 71.84%. According to SMM quotes, on July 27, the average price of Pr-Nd oxide was 765,000 yuan/mt, up 0.99% from the previous trading day. For the rare earth market outlook, in the short term, amid a stalemate in the tug-of-war between upstream and downstream, Pr-Nd product prices are expected to move sideways within a narrow range, with limited room for significant upward or downward movement. Supporting factors come from the supply side — recently some raw ore separation enterprises have suspended operations, production at scrap recycling enterprises remains persistently low, and overall oxide supply is relatively tight, forming bottom support for prices. Pressuring factors come from the demand side, as new orders for magnetic material enterprises are unlikely to recover quickly in the short term, buyers have low acceptance of high prices, and the market lacks sustained upward momentum. For heavy rare earths, after experiencing adjustments this week, dysprosium and terbium are expected to gradually stabilize as major players step in to purchase. From a medium-term perspective, most industry participants hold expectations for a demand recovery in the traditional peak season at the end of Q3, and coupled with the likely improvement in new export orders, the rare earth price center still has the potential to edge upward steadily after a period of consolidation. However, in the short term, close attention must be paid to the pace of downstream restocking and the purchasing moves of top-tier players. Recommended reading: