Abstract: Based on the large application prospects and market demand of rare earth permanent magneticon the fields of automobile industry, wind power generation, inverter air conditioner, IT and medicaldevice, this paper introduces the current situation of rare earth permanent magnetic industry of Jiangxiprovince. There have been some problems, such as the small scale of production, low-grade of quality, weakness in innovation capability, imperfect magnetic industry chain. And then relevant suggestions onthe industrial base construction, innovation platform building and talent introduction are put forward toimprove the development of rare earth permanent magnetic industry.