Executive Interviews

Asian Metal: Hello Mr. Yan! Welcome to accept Asian Metal’s interview. Please briefly introduce your main business first.

Gary Chen: Zhejiang Sheensen Magnetics Technology Co., Ltd. focuses on the research and production of high-performance NdFeB magnets and subassemblies. The company has independently developed and mastered multiple core technologies covering the preparation of sintered NdFeB permanent magnet materials, mechanical processing, surface protection, and remanufacturing. Its products are widely applied in fields such as automotive, new energy vehicles, industrial motors, compressors, water pumps, air conditioning compressors, wind power, and acoustics. The company has successively obtained multiple environmental and quality management system certifications, including ISO14001, ISO9001, ISO45001, and IATF16949. It has achieved mass production of high-grade rare earth permanent magnet materials such as N56, 56M, 56H, 56SH, 54UH, 50EH, 45AH, and 38VH, enabling it to meet diverse high-grade demands from customers to the greatest extent. With several mature and leading technologies, the company can provide customized magnetic steel solutions, reduce procurement costs for customers, and deliver greater added value.

Asian Metal: Do you have plans to enlarge production capacity in the coming two years?

Gary Chen: Our company’s second-phase factory is set to commence mass production within this year. Production capacity will expand from 7,000 tons in the first phase to 11,000 tons by 2026, and total capacity is projected to reach 22,000 tons by 2028, which is three times the current capacity. By then, we will rank among the top tier in the industry in terms of production scale as a single-factory facility.

Asian Metal: On April 4, 2025, the Ministry of Commerce and the General Administration of Customs of China issued Announcement No. 18, which outlined the decision to implement export controls on certain medium and heavy rare earth–related items. According to the announcement, magnets containing heavy rare earths, such as dysprosium and terbium, require dual-use export licenses. How will this affect the demand for magnetic materials?

Gary Chen: The export controls have indeed caused fluctuations in the demand for magnets containing dysprosium and terbium. In the first half of 2025, demand in certain sectors was somewhat affected, leading overseas clients to reassess procurement risks and adjust their established supplier structures. Our company has consistently focused on technological innovation, with long-term advancements in heavy rare earth–free technologies. Starting in the second half of the year, export demand gradually recovered, particularly driven by the expansion of high-end demand, which steadily revived our international business in the latter half of the year. In summary, the demand for magnets containing dysprosium and terbium has not disappeared due to export controls. Instead, it has undergone a transition from short-term adjustments to structural optimization and then to stable growth. Demand in high-end and essential sectors has demonstrated strong resilience, which, in the long run, is conducive to the advancement of China’s rare earth permanent magnet industry toward higher value chains.

Asian Metal: China’s NdFeB magnet production capacity already reaches 600,000 tons. What’s your prediction of China’s NdFeB magnet output in 2025? How will it change year on year?

Gary Chen: I predict that China’s NdFeB magnet output will reach 340,000–350,000 tons in 2025, with an increase of 5–10% year on year. It exhibits the characteristics of structural adjustment: low-end capacity is in oversupply, while high-end capacity faces a shortage.

Asian Metal: Which application saw the largest increase in demand for NdFeB magnets over the past year? How have the changes been in other major application areas compared with the same period?

Gary Chen: The humanoid robotics sector led with the highest growth rate, showing a 150% year-on-year increase in demand for NdFeB magnets, emerging as the top performer in demand growth. However, its consumption of NdFeB magnets remains smaller than that of new energy vehicles and wind power. New energy vehicles ranked second with a 40% growth rate, contributing the largest incremental demand of approximately 16,600 tons of NdFeB magnets and serving as a stable engine for industry growth. Wind power and industrial robots followed closely, with growth rates of 25% and 29%, respectively. Collectively, these three sectors contributed over 65% of the total incremental market demand. Additionally, traditional sectors exhibited a “the strong grow stronger, the weak grow weaker” trend. High-efficiency energy-saving fields supported by policies, such as inverter air conditioners, maintained 10% growth, while demand in sectors such as consumer electronics and elevators declined due to macroeconomic factors.

Asian Metal: Currently, most Chinese NdFeB magnet manufacturers report that some clients are urging them to develop heavy rare earth–free magnets. What’s your prediction on the demand prospects for heavy rare earth–free magnets?

Gary Chen: The demand prospects for heavy rare earth–free NdFeB magnets are exceptionally promising, and the sector is entering a phase of scaled growth. It is projected to experience explosive expansion between 2025 and 2027, with a compound annual growth rate exceeding 30% and the market size reaching tens of billions of RMB. For NdFeB magnet enterprises, those that first achieve technological breakthroughs and large-scale application in the field of heavy rare earth–free NdFeB magnets will seize a dominant position in the upcoming industry reshuffle. Our company is also accelerating the R&D and mass production of heavy rare earth–free technologies, prioritizing the development of high-cerium substitution and grain boundary diffusion combined approaches. We have already developed differentiated products for various application scenarios and established a comprehensive product line, with the highest grade currently reaching 48SH.

Asian Metal: How do you predict the development prospects of the new energy vehicle industry in the coming year?

Gary Chen: In the coming year, global new energy vehicle output is expected to reach 24–25 million units, representing approximately 15% growth, with a penetration rate of 30–35%. New energy vehicle output in China is expected to reach 17–19 million units, also around 15% growth, with a penetration rate of 55–60%.

Asian Metal: What’s your prediction of the development trends of the global and Chinese new energy vehicle industries in the next three to five years?

Gary Chen: Global sales of new energy vehicles are expected to exceed 20 million units by 2025, with a penetration rate of 25%. By 2030, global sales are predicted to reach 40 million units, with a penetration rate exceeding 40%, representing a compound annual growth rate of approximately 15.7%. In the Chinese market, sales are forecast to reach 14–16.5 million units by 2025, with a penetration rate of 55–60%, accounting for 60% of the global market. By 2030, sales are expected to reach 18–20 million units, with a penetration rate of 70–80%. The market size is projected to surpass RMB 4 trillion, with a total vehicle fleet exceeding 100 million units. Structurally, the market will exhibit a “dumbbell-shaped” distribution, driven by both the premium segment (above RMB 300,000) and the economy segment (below RMB 100,000), while competition in the mid-range segment intensifies.

Asian Metal: What do you see as the new growth drivers of NdFeB magnets in the next three to five years?

Gary Chen: In the coming three to five years, humanoid robots are expected to become the fastest-growing sector for NdFeB magnets, with a compound annual growth rate exceeding 30%. By 2025, global demand for NdFeB magnets is projected to increase by 150% year on year, and by 2030, global shipments are estimated to reach 300,000–500,000 units, driving annual demand of 1,800 metric tons of high-performance NdFeB magnets. Following closely, the offshore wind power industry is expected to maintain steady growth of 15–20%. By 2025, global demand for NdFeB magnets in wind power is projected to surpass 50,000 metric tons, with offshore wind accounting for over 40%. By 2030, offshore wind installed capacity is expected to double, and the penetration rate of direct-drive permanent magnet wind turbines is likely to exceed 70%. Meanwhile, the new energy vehicle industry and upgrades in traditional fields such as industrial automation and consumer electronics will provide a stable foundation. For our company, the focus will be on advancing heavy rare earth–free technology and developing products with high temperature resistance and enhanced stability.

Asian Metal: The current PrNd mischmetal and ferrodysprosium 80% mainstream prices hover at RMB 800,000–805,000/t and RMB1,400–1,420/kg EXW China T/T 30 days, respectively, with a year-on-year increase of 58.2% and a decrease of 13.5%. What do you see as the reasons for the price changes?

Gary Chen: PrNd mischmetal is expected to remain at the forefront of the new energy revolution, with supply-demand imbalances likely to persist. Prices are anticipated to stay elevated and continue to trend upward. In contrast, ferrodysprosium faces dual pressures from overcapacity and technological substitution, potentially prolonging price weakness. A turnaround may only occur once supply and demand rebalance or large-scale substitution technologies emerge.

Asian Metal: How do you predict PrNd mischmetal and ferrodysprosium price trends in Q1 2026?

Gary Chen: Given that some NdFeB magnet producers need to replenish inventory before the Spring Festival holiday, I predict that PrNd mischmetal prices will edge up or remain firm in January and February, before easing slightly in March. Ferrodysprosium 80% prices are expected to remain steady in January and February and may decline slightly in March.

Asian Metal: Thanks for your excellent sharing! We wish you every success.

Gary Chen: Thank you for Asian Metal’s interview. Our company will continue to deepen its efforts in the new energy and industrial sectors, accelerating technological iteration and product upgrades. Furthermore, we will expedite our deployment in humanoid robotics and offshore wind power. We look forward, with the strong support of Asian Metal, to contributing to the flourishing development of China’s permanent magnet motor industry.