(Yicai Global) Dec. 7 -- JL Mag Rare-Earth, a Chinese supplier of rare earth permanent magnetic materials, said it has secured permission for a secondary listing in Hong Kong and signed a deal to supply Japanese precision electric motor producer Nidec.

JL Mag received approval for the share sale from the Hong Kong Stock Exchange on Dec. 2, the Ganzhou-based company said yesterday. It will issue no more than 144.2 million shares at CNY1 (16 US cents) each to raise up to CNY144.2 million (USD22.6 million), according to a statement released by the China Securities Regulatory Commission on Nov. 25.

Founded in 1973, JL Mag went public on the Shenzhen Stock Exchange in September 2018. After jumping 2.6 percent at today’s market open, the shares [SHE: 300748] finished 2.7 percent down at CNY46.43 (USD7.29) each. The broader Shenzhen market came off 0.4 percent.

In a separate statement late yesterday, JL Mag also announced that it will develop high-performance rare earth permanent magnet products which will help Japan’s Nidec to further expand in the new energy vehicle market. JL Mag gave no financial details.

Kyoto-based Nidec is mostly known for building motors for computer hard drives and smartphones. Its electric vehicle driving motor system E-Axle had been installed in about 100,000 EVs as of last December, JL Mag said.

JL Mag uses rare earths as raw materials to design, develop, and produce high-performance neodymium magnet materials to customers’ requirements. Its products are mainly used in NEVs, permanent magnet wind motors, and energy-saving inverter air conditioners.

Editor: Futura Costaglione, Xiao Yi