Global Samarium Cobalt Magnet Market Size, Share, Opportunities, And Trends By Grade (Samarium Cobalt (1-5), Samarium Cobalt (2-17)), By End-User (Automotive, Aerospace & Defense, Marine, Manufacturing, Others), And By Geography - Forecasts From 2024 To 2029

The global samarium cobalt magnet market is expected to grow at a CAGR of 5.16% from US$518.008 million in 2022 to US$736.76 million in 2029.

Samarium cobalt (SmCo) magnets are a specific type of rare earth magnet characterized by their exceptional magnetic strength and ability to withstand high temperatures. These magnets are crafted from an alloy consisting of samarium and cobalt, often combined with trace amounts of other rare earth elements like praseodymium and neodymium. It's worth noting that while samarium cobalt magnets offer remarkable magnetic properties, they tend to be costlier compared to other magnet types. Additionally, they possess a brittle nature, which renders them more vulnerable to cracking and chipping.

Growth drivers for samarium cobalt magnet market

Global samarium cobalt magnet industry is anticipated to experience substantial growth in the foreseeable future due to the increasing demand for high-performance magnets across diverse industries. The primary driver of this market is the surging need for samarium cobalt magnets within the automotive sector. This keen demand can be attributed to the widespread utilization of these magnets in the production of automotive components like locking systems and windshield wipers. Furthermore, the global samarium cobalt magnet market is being propelled by the growing popularity of electric vehicles (EVs) and hybrid vehicles, as these vehicles frequently incorporate samarium cobalt magnets in their design. Additionally, significant investments made by both public and private entities in the manufacturing of advanced military weaponry are contributing positively to the market's expansion.

Increasing demand in the medical sector

Global samarium cobalt magnet industry demand is further bolstered by the widespread utilization of samarium cobalt (SmCo) in the medical sector is a significant driving force behind the market's growth. This is primarily attributed to the remarkable high-temperature resistance properties of samarium cobalt (SmCo), which make it an ideal choice for various medical devices. The deployment of samarium cobalt (SmCo) in these devices is consequently fueling global samarium cobalt magnet market expansion. For example, Arnold's RECOMA® Samarium Cobalt rare earth permanent magnets, flexible ferrites, and bio-compatible ultra-thin grade 1 titanium materials are extensively used in the medical industry. These materials can be found in a wide range of applications, including advanced diagnostic equipment, laboratory instruments, surgical tools, prosthetics, implants, drug delivery systems, and radiation shielding solutions.

Growth in utilization for the aerospace and defense industry

According to the Aerospace Industries Association (AIA) Annual Report 2023, the A&D industry achieved a remarkable milestone in 2022, generating a combined sales figure of $952 billion, marking a substantial 6.7 percent increase compared to the previous year. To put this in perspective, in 2021, the industry generated $892 billion in combined sales, reflecting a 2.1 percent increase over the previous year which recorded $874 billion. As the aerospace sector continues to flourish, the market demand for samarium cobalt magnets will further rise. Therefore, the increased revenue in the US aerospace and defense sector plays a pivotal role in driving the global samarium cobalt magnet market.

It is projected that the samarium cobalt magnet market in the China will grow steadily. 

Samarium cobalt is used majorly in the automotive segment as it has higher magnetic power and high resistance to demagnetization at higher temperatures. These properties make samarium cobalt ideal for new hybrid and electric vehicles. China is one of the leading countries in manufacturing electric automobiles coupled with the easy availability of raw materials and a vast manufacturing industry in the country. Various subsidies and tax redemption are given by the Chinese government to encourage people to buy more electric cars. For instance, according to the official statement from the Ministry of Finance in China, the extended program for new electric vehicles (NEVs) that are purchased in the year 2024-2025 will also be eligible for exemption from purchase tax which amounts per vehicle could be maximum RMB30,000 or US$4,170. With the increasing need for a greener and cleaner environment and to reduce the harmful effects of pollution in the country, the government is pushing people to purchase more electric cars which in turn is increasing the domestic samarium cobalt magnet market growth in the projected period.

Rising consumption of cobalt in China

According to the United States Geological Survey, China is the world’s leading producer of refined cobalt and is also considered as world’s leading consumer of cobalt with more than 80% of this consumption being used by the rechargeable battery industry.  According to the International Energy Agency, electric car sales in China, Europe, the United States, and others reached 8.0 million, 3.4 million, 1.6 million, and 0.9 million, respectively. As shown in the figure above, electric car sales in China are projected to reach an estimated 8.0 million in 2023. This increase in EV sales can drive the expansion of samarium cobalt magnets in China during the forecast period.

Market Key Developments

• In 2023, a Rare Earth Magnet Plant has been established for IREL (India) Ltd. This new facility is dedicated to the production of rare earth magnets, specifically Samarium Cobalt and Neodymium-iron-boron magnets. According to the provided information, the plant will employ the reduction-diffusion technique, a method developed by BARC (Bhabha Atomic Research Centre).
• In 2021, General Motors (GM) strategically arranged for the procurement of rare earth magnets for its future electric vehicle production within the United States. GM secured two separate agreements, one with MP Materials Inc., a prominent U.S.-based manufacturer of rare earth materials, and the other with Vaccuumschmeize.

Global Samarium Cobalt Magnet Market Scope:

Segmentation:

• By Grade
  • Samarium Cobalt (1-5)
  • Samarium Cobalt (2-17)
• By End-User
  • Automotive
  • Aerospace & Defense
  • Marine
  • Manufacturing
  • Other
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Others