The rise of a humanoid robot industrial chain worldwide will push up demand for permanent magnetic materials, a key raw material in robots, a top securities brokerage firm has said.
China Securities said in a research note published yesterday that as the humanoid robot, a fast-expanding segment, becomes commercially more mature, it will drive the sales of permanent magnetic materials, which are often used to produce the servo motor of robots.
These materials include neodymium magnet, cobalt hard magnetic alloys, ferrite, alnico magnet, among others.
They are often extracted from rare-earth minerals, a resource of which China has a large reserve.
China’s burgeoning robotic industry is poised to witness surging demand for rare earths, thanks to several developments, the brokerage firm noted.
In May, Tesla announced an updated version of its humanoid robot Optimus, with the device making huge inroads in several performance metrics.
Coupled with several domestic policy incentives aimed at fostering the robotic sector, China’s robotic industry looks set to benefit, contributing to the expansion of the whole industrial chain.
Market pundits thus predict a rosy future for suppliers of core components like permanent magnetic materials.
China Securities explained that currently the supply of these materials is abundant but the demand is relatively low.
That looks likely to change with the recent boom of robotics-related stocks on China’s A-share market.
Analysts with China Securities forecasted the boom to translate into upstream segments of the robotic industrial chain, especially manufacturers of servo motors.