DIRECT DRIVE (06731) rose more than 9% in morning trading. As of press time, the stock was up 9.03%, trading at HK$30.20, with a turnover of HK$25.14 million.

On September 29, DIRECT DRIVE announced the signing of a strategic cooperation agreement with China Rare Earth Innovation, a wholly-owned subsidiary directly managed by China Rare Earth Group. The two parties will engage in comprehensive and deep cooperation covering technology development, industrial coordination, capital linkage, and talent co-development. They will jointly tackle the research and development of high-performance magnetic materials such as neodymium iron boron, magnetic focusing rings, and radiation magnetic rings, helping to establish a domestic supply chain from rare earth new materials to robotic power components.

Public information shows that rare earth permanent magnet materials are important foundational materials for high-performance motors, while direct-drive motors are critical power components for robotic joints to achieve high torque, lightweight design, and precision control. Through cooperation with China Rare Earth Innovation, DIRECT DRIVE is expected to further strengthen upstream magnetic material research and development as well as supply chain coordination, and extend material-side advantages to motors and robotic power systems.

If subsequent joint research and development results achieve industrialization, it is expected to further enhance the company's independent and controllable capabilities in core components of direct-drive motors, and provide support for its expansion into emerging application scenarios such as embodied intelligence and industrial robots.