JL MAG Rare-Earth (SZSE: 300748): China's Magnet Manufacturing Leader
JL MAG is what the rest of the world's magnet strategy is a reaction to. It is the largest NdFeB permanent magnet manufacturer in a country that makes an estimated 85 to 90% of the world's supply, and it has already built dedicated production lines for humanoid robot motor rotors — while Western rivals are still commissioning their first commercial magnet lines.
Who they are
JL MAG was founded in 2008 in Ganzhou, Jiangxi — not a coincidental location. Ganzhou sits in the heart of China's heavy rare earth mining region, and Jiangxi's neighbouring Inner Mongolia operations give JL MAG access to the light rare earth deposits around Baotou as well. The company runs five factories across Ganzhou, Baotou and Ningbo, with a combined magnetic materials capacity approaching 40,000 tonnes per year.
It sources the overwhelming majority of its raw material from two state-linked giants, China Northern Rare Earth Group and China Rare Earth Group, which together accounted for 63% of JL MAG's total procurement in 2024. That's a structural fact worth sitting with: even China's largest private magnet maker is deeply dependent on state-controlled upstream suppliers, which is part of why Beijing's export licensing decisions ripple through every customer JL MAG serves worldwide.
The company is dual-listed on the Shenzhen Stock Exchange and Hong Kong Stock Exchange, giving it access to both mainland and international capital while remaining fundamentally a Chinese industrial company operating inside China's rare earth export licensing regime.
What they do
JL MAG makes NdFeB permanent magnets and magnetic components sold into new energy vehicles and auto parts, variable-frequency air conditioners, wind power, industrial servo motors, 3C electronics, energy-saving elevators, and rail transit — and, increasingly, robotics. The company counts eight of the world's top ten air-conditioning compressor manufacturers and five of the top ten wind turbine OEMs as customers, alongside major EV makers including Tesla, BYD and Toyota.
The robotics push is now explicit and product-specific. JL MAG's own materials describe factories "equipped with advanced embodied robot motor rotor production lines," and the company has disclosed initial mass-production capability for humanoid robot magnetic components. Technical work is focused on reducing dysprosium and terbium content — the expensive heavy rare earths — while maintaining the high-temperature performance a continuously-running robot actuator needs, a materials-science lever that matters as much for cost as for supply security.
2025 output records show the scale: approximately 29,300 tonnes of magnet blanks, up 39% year over year, and roughly 20,900 tonnes of finished magnets, up about 38%. Capacity plans call for 40,000 t/yr by the end of 2025 and roughly 60,000 t/yr by 2027 — several multiples of what MP Materials or USA Rare Earth are currently building toward in the United States.
How they make money
H1 2026 net profit was guided to increase 31.17% to 50.84% year over year, with revenue expected to rise about 30%, driven partly by surging demand for industrial servo motor magnets — the category that includes robot components. Management's stated 2026 operating policy explicitly names "actively deploying embodied robot motor rotors" as one of its core priorities alongside building 20,000 tonnes of new capacity.
Investment continues at scale: a roughly $143.6 million new magnetic materials plant was announced as demand accelerated, part of a broader pattern of Chinese magnet makers expanding capacity well ahead of confirmed robot production volumes — a bet that whoever has capacity in place first captures the design wins when humanoid programmes actually scale.
Where it sits in the value chain
JL MAG sits in Stage 1 — Magnets & critical materials, on the manufacturing side rather than the mining side. Unlike MP Materials or Lynas, JL MAG doesn't operate mines; it buys separated rare earth oxide from upstream suppliers and turns it into finished magnets and, increasingly, complete motor rotor assemblies.
That rotor-assembly step is worth noting specifically: JL MAG isn't only selling a raw magnet that a robot builder then has to integrate into a motor. Producing finished rotors moves JL MAG a step closer to Stage 3 (actuators), competing on integration as much as on magnet chemistry — a strategy that mirrors what Hyundai Mobis and Schaeffler are doing from the automotive-supplier side.
The bigger trend
JL MAG is the scale and speed benchmark every non-Chinese magnet strategy is measured against. Its capacity trajectory toward 60,000 t/yr by 2027 dwarfs the U.S. buildouts at MP Materials and USA Rare Earth combined, and its willingness to build robot-specific rotor lines ahead of confirmed volume shows how seriously Chinese industrial policy treats humanoid robotics as a coming demand category.
The trend working against JL MAG is entirely political rather than industrial: Western defense and government-adjacent robot programmes are moving deliberately to exclude Chinese-origin magnets, with U.S. sourcing rules tightening from January 2027. That doesn't touch JL MAG's dominant position in Chinese and price-sensitive global markets, but it does put a ceiling on how far JL MAG's technology can travel into the highest-margin, most security-sensitive corners of the robotics supply chain.
What to watch
- Disclosed progress toward the 60,000 t/yr 2027 capacity target and utilisation rates along the way.
- Any breakout of robotics-specific revenue as embodied robot rotor lines ramp from initial to full mass production.
- Dysprosium and terbium reduction technology, since lower heavy rare earth content directly lowers both cost and geopolitical exposure.
- Export licensing developments affecting magnet and rotor shipments to markets outside China.
- Procurement concentration with China Northern Rare Earth Group and China Rare Earth Group, still over 60% of total sourcing.
Related companies
🇺🇸The U.S. answer to JL MAG's scale, backed by a government price floor rather than raw capacity.
🇦🇺Non-China feedstock supplier — the exact dependency JL MAG's Western competitors are trying to build.
🇨🇳Fellow Chinese supplier already shipping robotics hardware in high volume.
FAQ
Does JL MAG mine its own rare earths?
No. It manufactures magnets and magnetic components from rare earth oxide purchased from upstream suppliers, principally China Northern Rare Earth Group and China Rare Earth Group, which together supplied 63% of its total procurement in 2024. Its business is magnet manufacturing, not mining.
How does JL MAG's capacity compare to Western magnet makers?
Significantly larger. JL MAG is targeting roughly 60,000 metric tonnes of annual capacity by 2027, compared with MP Materials' 10,000 t/yr target at its 10X facility and USA Rare Earth's roughly 1,200 t/yr near-term Stillwater target. China's overall share of global NdFeB magnet manufacturing is estimated at 85 to 90%.
Does JL MAG make robot parts specifically?
Yes, beyond generic magnets. The company has disclosed dedicated production lines for embodied robot motor rotors and initial mass-production capability for humanoid robot magnetic components, positioning it as a rotor and component supplier rather than only a raw-magnet vendor.
Can Western robot makers buy from JL MAG?
Some already do indirectly through EV and industrial supply chains, since JL MAG counts Tesla, BYD and Toyota among its customers. But defense and government-adjacent robotics programmes in the U.S. and allied countries are moving to exclude Chinese-origin magnets under sourcing rules tightening from January 2027, which limits JL MAG's addressable market in the highest-security segments.