CMSC: Supply and demand for rare earths is looking up, Siasun Robot & Automation is generating new opportunities.

CMSC released a research report stating that the downstream demand for rare earth permanent magnet materials will continue to grow in 2024. The humanoid Siasun Robot&Automation market is particularly promising, entering the year of mass production and experiencing a rapid increase in demand, rapidly becoming an important application area for high-performance neodymium iron boron permanent magnet materials. The global total demand for high-performance neodymium iron boron is expected to reach 231,400 tons by 2027, with a CAGR of 20.2%, indicating a broad market outlook. According to calculations, the supply-demand gap for praseodymium-neodymium oxide will be 0.5%, -3.2%, -4.9% from 2025 to 2027, and the global praseodymium-neodymium oxide market supply-demand gap will expand year by year. Due to its superior performance, rare earth permanent magnets are widely used in new energy vehicles, wind power, consumer electronics, etc., and this year may be the year of mass production for humanoid Siasun Robot&Automation, opening up future application scenarios and imagination. CMSC's main points are as follows: The supply-demand of raw materials praseodymium-neodymium will tighten year by year, and the industry's upward cycle is expected to begin. Rare earth permanent magnet materials are alloys made of rare earths such as neodymium, samarium, etc., and iron, cobalt, etc. They are divided into neodymium iron boron (magnetic energy product 27-50MGOe, leading wind power and new energy vehicles) and samarium cobalt (mainly military) categories. Their core value lies in their excellent magnetic performance and stability, with downstream applications in consumer electronics and traditional industrial fields, as well as new energy vehicles and automotive components, energy-saving variable frequency air conditioning, wind power generation, energy-saving elevators, Siasun Robot&Automation, and intelligent manufacturing, etc. The growth rate of rare earth quotas has slowed down, and the supply of rare earth permanent magnets upstream has become more concentrated. In 2024, the downstream demand for rare earth permanent magnet materials will continue to grow. It is estimated that by 2027, the new demand in the fields of global new energy vehicles, variable frequency air conditioning, wind power generation, and energy-saving elevators will reach 69,500 tons (CAGR 24.5%), 31,600 tons (CAGR 16.5%), 20,700 tons (CAGR 13.7%), and 27,600 tons (CAGR 14.34%) respectively. The demand in the industrial motor field is expected to exceed 32,000 tons (CAGR 22.7%). The humanoid Siasun Robot&Automation market is particularly promising, entering the year of mass production and experiencing a rapid increase in demand, rapidly becoming an important application area for high-performance neodymium iron boron permanent magnet materials. If by 2027, the production of humanoid Siasun Robot&Automation will reach 500,000 units, the new demand for high-performance neodymium iron boron permanent magnet materials in this field will grow at a compound annual growth rate of up to 150%. Overall, the total global demand for high-performance neodymium iron boron is expected to reach 231,400 tons by 2027, with a CAGR of 20.2%, indicating a broad market outlook. According to CMSC's calculations, the supply-demand gap for praseodymium-neodymium oxide will be 0.5%, -3.2%, -4.9% from 2025 to 2027, and the global praseodymium-neodymium oxide market supply-demand gap will expand year by year. Investment advice: It is expected that the rare earth industry will be in a tight balance of supply and demand in 2025, and the supply-demand gap will widen year by year in 2026 and 2027, leading to a potential increase in rare earth prices and the beginning of an upward cycle for the industry. Given (1) the strong positive correlation between magnetic material company profits, stock prices, and rare earth prices; (2) the geopolitical risk / Trump trade highlighting the strategic value of rare earth / magnetic materials; (3) 2025 may be the year of mass production for Siasun Robot&Automation, significantly driving magnetic material demand. The rare earth magnetic material sector has certain investment value. Recommended stocks to watch: Jl Mag Rare-Earth (300748.SZ), Yantai Zhenghai Magnetic Material (300224.SZ), Ningbo Yunsheng (600366.SH), Beijing Zhong Ke San Huan High-Tech (000970.SZ), Chengdu Galaxy Magnets (300127.SZ), Zhejiang Zhongke Magnetic Industry (301141.SZ), Innuovo Technology (000795.SZ), Earth-Panda Advanced Magnetic Material (688077.SH), Advanced Technology & Materials (000969.SZ), etc. Risk warning: Fluctuations in rare earth prices, project progress falling short of expectations, demand falling short of expectations, macroeconomic risks, exchange rate fluctuations, etc.