Two companies based in Baotou, North China's Inner Mongolia autonomous region, have received investments worth 160 million yuan ($24.86 million) which are expected to help them introduce advanced management concepts and resources such as technology, talents, and markets, according to the city's finance bureau.

The investments came from the Baotou Key Industry Investment Fund.

Inner Mongolia Xindanengtong Co received an investment of 60 million yuan.

With the introduction of a group of permanent magnet materials companies, Baotou's permanent magnet new material production capacity will increase from the current 56,000 metric tons to 100,000 tons at the end of the 14th Five-Year Plan period (2021-25). The demand for subsequent processing facilities will also increase significantly.

The investment for Inner Mongolia Xindanengtong Co will be mainly used for the purchase of cutting equipment and advanced technology required for subsequent processing.

The enterprise's downstream processing will realize large-scale and standardized production, making up for the insufficiency of Baotou's downstream processing, as well as further improve the city's rare earth industry chain.

Baotou Jinshan Magnetic Material Co received an investment of 100 million yuan.

The investment will mainly be used for the construction of its second-phase production line, the renewal of equipment and application research and the development of its first-phase production line.

After the completion of the project, the company's high-performance NdFeB capacity will increase from 2,500 tons to 5,000 tons per year.

The company can achieve an output value of 1 billion yuan after it reaches production capacity, and this would in turn help boost regional economic growth.

This project will also help Baotou achieve the goal of producing more than 100,000 tons of rare earth magnetic materials and introducing more than five listed magnetic material companies by 2025.