China is rich in rare earth material; the industry storage is of 70% world total storage. It has special advantage to develop rare earth function material. For example, the rare earth permanent magnet worldwide increase rate is 23% while China is 60%. It reports the total production of neodymium magnets material is 20,000 ton, in which China is 9500 ton, about 50% of the world production. It is estimated that in 2010 the total production of neodymium magnets material will be 140 000 ton, the value would be 8 billion US dollar, while the related component value would reach 10-15 billion US dollar.