Tech innovation transforming China’s rare earth industry

A visitor examines a rare earth iron ore exhibit at the Fifth China-Mongolia Expo in Hohhot, Inner Mongolia autonomous region, on Aug 26, 2025. (DING GENHOU/FOR CHINA DAILY)

China is pioneering a green transformation of its rare earth industry through world-leading technological innovation, setting global standards for sustainable mineral extraction, company executives and experts said.

For years, China has supplied over 70 percent of global rare earth materials while holding less than 40 percent of reserves — a monumental contribution to international high-tech advancement now entering an era of ecological responsibility, according to the China Nonferrous Metals Industry Association.

Liu Leiyun, chairman of China Rare Earth Group, said in an article published in The Journal of New Industrialization that China’s national commitment to green mining has yielded revolutionary breakthroughs that fundamentally redefine rare earth production.

Recycling initiatives now account for over 10 percent of domestic rare earth supply — concrete proof of China’s circular economy leadership in rare earth mining, Liu said.

The domestic industry celebrates landmark achievements including biological mining technologies and high-salt wastewater recycling systems achieving true “zero liquid discharge”, Liu said.

ALSO READ: ‘Digital China’ the priority for 2026

Workers inspect a pilot plant workshop for a rare earth-related project at a research institute in Dongying, Shandong province, on Sept 15, 2023. (LIU ZHIFENG / FOR CHINA DAILY)

Ge Honglin, president of the China Nonferrous Metals Industry Association, said rare earths are the indispensable “industrial vitamins” for national security and new industrialization. China’s responsible development approach sets the global benchmark.

As an industry standard-bearer, China Northern Rare Earth (Group) High-Tech Co Ltd exemplifies China’s green vision, seamlessly integrating environmental, social and governance, or ESG principles and new quality productive forces throughout its operations.

Liu Mei, technical supervisor of the environmental protection management department at Northern Rare Earth, said the company had launched its phase I green smelting upgrade project in October 2024, which is its most technologically advanced eco-facility.

In June 2025, at the construction site of Jinmeng Rare Earth’s project — comprising the automation upgrade of its 3,000-metric-ton-per-year rare earth concentrate separation line and a new 4,000-ton-per-year neodymium magnet waste recycling production line — a busy yet orderly construction scene unfolds.

Neodymium magnet is known as a “magnet metal” that underpins energy-efficient motors, wind turbine generators and servo motors, experts said.

Liu Mei said these projects collectively utilize over 700 energy-saving permanent magnet motors, fully aligning with requirements for energy conservation and carbon reduction.

“They demonstrate how Northern Rare Earth vigorously implements its green development strategy, and achieves green, low-carbon operations throughout the entire production chain,” she added.

Northern Rare Earth’s environmental leadership extends beyond production. The company has established the industry’s first carbon accounting platform, published comprehensive green and low-carbon management guidelines, and pioneered an environmental product declaration platform enabling green global trade.

“Our solar plants and intelligent energy management systems have reduced energy consumption per unit by 7.82 percent year-on-year — a quantifiable contribution to China’s dual-carbon goals,” said Zheng Jian, regional technical supervisor at the production technology department of Northern Rare Earth.

Zheng said the company has also pioneered industrial wastewater “zero discharge” through revolutionary treatment systems including evaporation crystallization and magnesium bicarbonate conversion, enabling full resource recovery. Air purification innovation achieves ultra-low emissions of sulfur and fluorine through multi-stage gas treatment with resource reclamation.

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