Reduced spot supplies of neodymium-iron-boron (NdFeB) magnet scrap, and lower profit margins at most recycling plants cut China's recycled rare earth output in 2024, according to Chinese rare earth recycling firm Ji'an Xintai Technology's chairman Liu Weihua.

China's output of rare earth oxide (REO) produced from NdFeB magnet scrap fell by 14pc on the year but rose by 2pc against 2022 to 34,147t in 2024, which included 26,504t of praseodymium-neodymium oxide, 1,048t of gadolinium oxide, 160t of terbium oxide, 710t of dysprosium oxide and 167t of holmium oxide, said Liu. China's output of 39,662t of REO from NdFeB magnet scrap in 2023 comprised 31,730t of praseodymium-neodymium oxide, 1,737t of gadolinium oxide, 138t of terbium oxide, 888t of dysprosium oxide and 202t of holmium oxide, he added.

Liu disclosed that NdFeB magnet scrap from larger magnet plants has fallen over the past few years because of technological upgrades. NdFeB magnet scrap output has traditionally accounted for about 25-30pc of China's total magnet output, although current figures were not disclosed. More trading firms have also been reluctant to sell NdFeB scrap or unwilling to offer lower, so as to ensure higher profits. Liu also added that more rough magnet manufacturing plants have increased their recycling capacity for NdFeB scrap in an attempt to improve profitability and resource utilisation.

Thinner profits across most rare earth recycling plants caused by reduced supplies and comparatively firmer offers for NdFeB scrap, as well as falling rare earth prices, led to the fall in rare earth oxide output in 2024. Argus-assessed prices for 99pc praseodymium-neodymium oxide fell by 26pc on the year to 392 yuan/kg ($53.60/kg) ex-works in 2024. Average prices for 99.5pc dysprosium oxide were assessed lower by 21pc at Yn1,837/kg ex-works in the same period. Assessed prices for 99.99pc terbium oxide averaged at Yn5,789/kg ex-works in 2024, down from Yn9,216/kg ex-works in 2023.

China's Jiangxi province was the largest producing region for rare earth recycling products in 2024, said Liu, accounting for 64pc of China's total recycling output. This was followed by Shandong province with 15pc and Jiangsu with 11pc.

Global rare earth oxide output in 2024 reached 454,000t, with around 410,000t or 90pc of rare earth oxide produced from China through the country's mining quotas, NdFeB scrap and imported ores, Liu said.

Rapidly increasing output of NdFeB magnets, as well as disassembled and recycled products, have lifted China's rare earth recycling capacity over the past two years. China's production capacity of rare earth oxide produced from NdFeB scrap recycling surpassed 80,000t in 2024 and is projected to rise further to 100,000t in 2025.

China currently has around 40 NdFeB scrap recycling plants producing rare earth oxides. Output capacity in Jiangxi, Jiangsu and Shandong makes up 86pc of China's total rare earth recycling capacity, according to Liu.