Neodymium Magnet Market Size, Share, Opportunities, And Trends By Type (Bonded, Sintered), By End-User Industry (Automotive, Healthcare, Consumer Electronics, Others), And By Geography – Forecast From 2025 To 2030

Description

The Neodymium Magnet Market is expected to grow from US$3.020 billion in 2025 to US$3.767 billion in 2030, at a CAGR of 4.52%.

Neodymium Magnet Market Highlights

• Rising demand for high-performance magnets in electric vehicles and renewable energy sectors.
• Strong growth driven by advancements in technology and increased applications across industries.
• Expanding use in consumer electronics, healthcare devices, and automotive components.
• Supply chain challenges due to reliance on limited global sources of raw materials.

The Neodymium Magnet market internationally is experiencing considerable growth, supported by the rapid pace of technological change, increasing use of electric vehicles (EVs), growth of global renewable energy infrastructure, and rising demand for consumer electronics and industrials. Neodymium magnets, which are mainly composed of neodymium, iron, and boron (NdFeB), are noted for their powerful magnetic strength, compactness, and efficiency, which make them significant factors in high-performance modern applications. The market has expanded due to the world’s capacity for energy-efficient and sustainable solutions, with manufacturers directing their efforts to improving magnetic performance, thermal stability, and protecting themselves from corrosive influences to meet stringent industrial requirements.

Regulatory frameworks promoting environmental safeguards, safe processing, and trade compliance strongly influence the industry. Some of the primary regulations include China's mining and exporting procedures through the Ministry of Industry and Information Technology (MIIT), the United States Environmental Protection Agency (EPA) guidelines concerning emissions and waste re-usage procedures, and the European Union REACH and RoHS regulations, which provide for the proper fabrication and usage of neodymium magnets in consumer and industrial goods. In addition, the use of international standards such as ISO 14001 promotes environment-friendly manufacturing practices.

Neodymium Magnet Market Overview

A primary reason the global Neodymium Magnet market is expanding rapidly is the need of high-performance permanent magnets in sectors such as electronics, automotive, renewable energy, and medical devices. For instance, neodymium magnets, being the strongest and smallest in size, are therefore the first choice for electric motor, generator, hard disk drive unit or wind turbine producers, where output and efficiency are key.

The growing number of electric vehicles (EVs) in the world has become the major market growth, as these cars require the most efficient and therefore lightweight magnets for their traction motors. Consequently, their contribution to market growth is significant. Moreover, the vast range of consumer electronics products, such as smartphones, laptops, and audio equipment, has been a strong amplifier of the demand for tiny, powerful magnets.

The demand for clean energy solutions such as wind turbines and hybrid vehicles, along with increased investment in advanced electronics manufacturing, is the main driver for the growth that North America and Europe are experiencing. Although the market has a strong upward trend, it faces several challenges;  for example, the prices of rare earth materials are fluctuating, and the mining and processing of neodymium cause a negative environmental impact. These challenges may affect profits and  supply chain stability. The U.S. Geological Survey estimates that the United States could purchase 550 tons of cerium, 1,300 tons of lanthanum, 600 tons of neodymium, and 70 tons of praseodymium in FY 2024.     

The Neodymium Magnet industry is subject to several important regulatory bodies and regulations that seek to ensure environmental protection and compliance with trade laws and product regulations. In China, rare earth mining, export quotas, and environmental compliance are the responsibility of the Ministry of Industry and Information Technology (MIIT) and the Ministry of Ecology and Environment (MEE). In the United States, the Environmental Protection Agency (EPA) imposes regulations concerning waste disposal and emissions from rare earth processing. With the European Chemicals Agency (ECHA), the regulation of countries and materials is governed by the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations, which ensure that Neodymium Magnets are safe with the materials they are contained in.

There are also various international standards applicable, for instance ISO 14001, which include a guideline for manufacturers regarding environmental management, and various international RoHS (Restriction of Hazardous Substances) regulations governing compliance for electronic applications. With these regulations governing the production area, global supply chains and sustainable growth strategies for production in the Neodymium Magnet sector are ensured. 

The neodymium magnet market is comprised of leading companies, including Adams Magnetic Products, Dexter Magnetic Technologies, Arnold Magnetic Technologies, VACUUMSCHMELZE GmbH & Co. KG, TDK Corporation, Hitachi Metals Ltd., Baotou Tianhe Magnetics Technology Co., Ltd., Goudsmit Magnetics, Thomas and Skinner Inc. and Pacific Metals Co., Ltd. These companies are focused on innovative technologies, strategic alliances and increased production capabilities to meet the escalating demands in diverse sectors. On the raw material side of the equation, suppliers of rare earth materials, including MP Materials, Lynas Rare Earths Ltd., Iluka Resources, CVMR Corporation, Phoenix Tailings, and China Rare Earth Holdings Limited, supply essentially needed neodymium, cerium and lanthanum for the manufacture of magnets.

Neodymium Magnet Market Growth Drivers:

• The potential of Neodymium Magnets

Neodymium recycling has a significant potential to restructure the sector. Recently, several businesses have begun implementing recycling procedures to recycle materials from end-use sectors. The need for neodymium products is also anticipated to increase due to initiatives like the Traverse Wind Energy Center, Aviator Wind Project, and Goodnight Wind Energy Project. Fluoride-based fused salt electrolysis is a crucial step in the production of metallic neodymium. Neodymium must be separated from other rare earth elements using a lot of energy. A significant amount of energy is required to produce an alloy or metal since the feed material utilized in the process is thermodynamically very stable. Therefore, increasing energy prices are anticipated to significantly affect the market's expansion.

• Rising Interest in Renewable Energy Sources

Rising interest in renewable energy sources and expansion of the neodymium magnet sector are driving the demand for neodymium magnets. For instance, according to current data from the International Energy Agency (IEA), 2021 witnessed a record of 273 TWh (up 17%) of wind electricity generation, which was 55% higher than that achieved in 2020 and was the highest among all renewable power technologies. In addition, there are further plans to get on track with Net Zero Emissions by 2050, which is approximately going to be 7900 TWh of wind electricity generation in 2030.

• Rising Demand in the Automotive Industry

One of the prime reasons supporting market growth is the rising use of neodymium magnets as an essential part of the electronic systems used extensively in the automotive industry, including the energy transfer system, electronic control unit, multimedia system, and safety and information systems. Different safety control systems, including collision prediction systems and safe driving assistant systems, are employed widely when new energy cars and autonomous technologies are developed. Neodymium magnets, soft magnetic ferrite, and metal soft magnetic materials are the major materials utilized to make the magnetic components for vehicle electrical technology. The demand for magnetic materials is increasing along with the development of lightweight, intelligent, and electric cars. For example, according to the International Energy Agency (IEA), electric car sales including BEVs and PHEVs exceed 10 million, which was up by 55% relative to 2021.

• Technological advancements and the rapid growth of Electric Vehicles (EVs)

The technological developments in electric motors with the use of innovative neodymium magnets are expected to propel the market growth in the long term. According to the US Department of Energy, an estimated 90% to 100% of the battery and hybrid electric vehicles will have synchronous traction motors with neodymium iron boron (NdFeB) magnets by 2025. The source further stated that the global demand for neodymium magnets for electric vehicle applications is projected to increase dramatically from 7.3 thousand tons in 2020 to 114.1 thousand tons by 2030, which will further grow to 266 thousand tons by 2050. The global shares of the neodymium magnets for electric vehicle applications for 2020, 2030, and 2050 are estimated to be 6.1%, 29.5%, and 35.3% respectively.

The swift expansion of the Electric Vehicle industry is among the major factors driving the Neodymium Magnet market and is transforming demand for the product internationally. With increasing emphasis by government and industry on carbon neutrality and sustainable transportation, the shift has been from Internal Combustion Engine vehicles to fully electric and hybrid designs. EVs are extensively used in their traction motors and generators and powertrains, etc, of high-performance permanent magnets, especially neodymium magnets.  Neodymium magnets are attractive due to their superior magnetic qualities, compact size, and higher efficiency compared to ferrite or alnico magnets.   

The EU registered 1.45 million new battery-only electric passenger cars in 2024. This resulted in a fleet of 5.87 million battery-only electric vehicles, a 32.4% increase over 2023's total of 4.43 million. The effectiveness and range of an EV depend on the efficiency of its electric motors, making neodymium magnets an important area of focus for automakers seeking to meet the needs of consumers and regulatory bodies. Regions such as China, Europe, and North America are spearheading this transition through increased adoption of EVs, spurred on by government incentives, emission regulations and increasing consumer awareness about environmental sustainability. The growth of the battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) markets has created a sustained long-term demand for high-grade neodymium magnets, encouraging manufacturers to invest in increased production capacity, the development of magnet technologies and the supply of raw material chains.

Neodymium Magnet Market Segmentation Analysis

• By End-user: Automotive

By end-user industry, the neodymium magnet market is analyzed for automotive, consumer electronics, healthcare, and others. The automotive segment is anticipated to see exponential growth in demand for neodymium magnets due to their wide-scale applicability and usage in the booming electric vehicle industry. Neodymium iron boron magnets are key components in the synchronous traction motors used for propulsion purposes in battery and hybrid electric vehicles.

The growing electric vehicle industry and global efforts to reduce carbon emissions are anticipated to drive the demand and segment’s growth during the forecast period. The technological developments in electric motors using innovative neodymium magnets are expected to further propel the market growth.

According to the US Department of Energy data of February 2022, an estimated 90% to 100% of battery and hybrid electric vehicles will have synchronous traction motors with neodymium iron boron (NdFeB) magnets by 2025.

Moreover, the same source further stated that the global demand for neodymium magnets for electric vehicle applications is projected to increase dramatically from 7.3 thousand tons in 2020 to 114.1 thousand tons by 2030, and further grow to 266 thousand tons by 2050. The global shares of neodymium magnets for electric vehicle applications in 2020, 2030, and 2050 are estimated to be 6.1%, 29.5%, and 35.3% respectively.

In addition, as per the report from the Indian Ministry of Science & Technology, more than 90 percent of the electric vehicles employ brushless DC motors, which utilize rare earth Nd-Fe-B magnets.

Moreover, according to the International Energy Agency (IEA), EV car sales globally are expected to grow rapidly by more than 25 percent and account for 17 million in 2024. The increased EV sales and demand for neodymium magnets for both traditional and EV vehicles are anticipated to increase the market share of the neodymium magnets for the segment during the projected period.

Neodymium Magnet Market Geographical Outlook:

• Asia-Pacific: China

The Asia Pacific neodymium magnet market is predicted to expand during the forecasted period owing to its well-established presence in the field of rare earth magnets. China has established itself as a dominant player in rare earth magnets production owing to the country’s large reserves, low production cost coupled with favourable government policies. According to the US Geological Survey, in 2024, China’s rare earth mining represented an increase from 210,000 tons in 2023 to 240,000 tons in production scale in 2023, with the reserve accounting for 44,000,000 tons as of 2023. Moreover, the growing demand for rare earth magnets such as neodymium, both on a domestic and international scale, has further propelled China’s rare earth production, thereby further augmenting market growth.

Neodymium magnets, owing to their high energy production and coercivity, find major applicability in the motors of electric and hybrid vehicles. China is experiencing a significant shift towards sustainable fuel adoption in the automotive sector to reduce carbon emissions, resulting in a significant increase in the consumption and production of electric vehicles in the country. For instance, according to the International Energy Agency on ‘Global EV Outlook 2025’, plug-in-hybrid electric vehicle (PHEV) sales in China reached 2.7 million in 2023, which further grew to 4.9 million in 2024. Meanwhile, battery electric vehicle (BEV) sales also witnessed an increase from 5.4 million to 6.4 million from 2023 to 2024.

Furthermore, as per the same source, China accounted for around half of the car sales being electric cars in 2024, which depicts two-thirds of the electric vehicle sales globally. Such an increase in EV applications has provided a positive scope to the market demand for neodymium magnets in China, thereby propelling overall growth.

In addition to this, the country's growing onshore and offshore wind projects, along with the utilization of direct drive generators in these wind power turbines, rely significantly on rare-earth magnets like neodymium magnets. This promotes the requirement for a large amount of neodymium magnet consumption in the nation. For instance, the data from Global Energy Monitor of 2025 stated that the country is the global offshore wind powerhouse, which grew to 42.7 GW in 2025 from around 5 GW in 2018, representing 50 percent of the world’s capacity. In addition, as per the same source, the pipeline of wind capacity projects in China is about 593 GW, from which 223 GW is under the construction phase, 270 GW is pre-construction phase, and 99 GW is in the announced phase.

Neodymium Magnet Market Key Developments

• In 2025, MP Materials announced a definitive, long-term agreement to supply Apple with rare earth magnets manufactured in the United States from 100 percent recycled materials.

• In 2025, MP Materials reached a pivotal milestone in restoring the U.S. rare earth magnet supply chain. The company’s flagship Independence facility in Fort Worth, Texas, has commenced commercial production of neodymium-praseodymium (NdPr) metal and trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets.

Segmentation:

• By Type
• Bonded
• Sintered
• By End-User
• Automotive
• Consumer Electronics
• Healthcare
• Others

• By Application

• Motors & Generators
• Sensors
• Hard Disk Drives
• Magnetic Resonance Imaging (MRI)
• Magnetic Separation Equipment
• Loudspeakers & Headphones
• Wind Turbines
• Others

• By Geography

• • North America
    • USA
    • Canada
    • Mexico
    • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. NEODYMIUM MAGNET MARKET BY TYPE (2020-2030)

5.1. Introduction

5.2. Bonded

5.3. Sintered

6. NEODYMIUM MAGNET MARKET BY APPLICATION (2020-2030)

6.1. Introduction

6.2. Motors & Generators

6.3. Sensors

6.4. Hard Disk Drives

6.5. Magnetic Resonance Imaging (MRI)

6.6. Magnetic Separation Equipment

6.7. Loudspeakers & Headphones

6.8. Wind Turbines

6.9. Others

7. NEODYMIUM MAGNET MARKET BY END-USER (2020-2030)

7.1. Introduction

7.2. Automotive

7.3. Healthcare

7.4. Consumer Electronics

7.5. Others

8. NEODYMIUM MAGNET MARKET BY GEOGRAPHY (2020-2030)

8.1. Introduction

8.2. North America

8.2.1. By Type

8.2.2. By Application

8.2.3. By End-User

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type

8.3.2. By Application

8.3.3. By End-User

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type

8.4.2. By Application

8.4.3. By End-User

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. France

8.4.4.3. United Kingdom

8.4.4.4. Others

8.5. Middle East and Africa

8.5.1. By Type

8.5.2. By Application

8.5.3. By End-User

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. Israel

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Type

8.6.2. By Application

8.6.3. By End-User

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Neodymium

10.1.1. MP Materials

10.1.2. Iluka Resources

10.1.3. Phoenix Tailings

10.1.4. CVMR Corporation

10.1.5. Lynas Rare Earths Limited

10.1.6. China Rare Earth Holdings Limited

10.2. Cerium

10.2.1. Iluka Resources

10.2.2. MP Materials

10.2.3. CVMR Corporation

10.2.4. Lynas Rare Earths Limited

10.3. Lanthanum

10.3.1. Iluka Resources

10.3.2. MP Materials

10.3.3. CVMR Corporation

10.3.4. Lynas Rare Earths Limited

10.4. Neodymium Magnet

10.4.1. Adams Magnetic Products

10.4.2. DEXTER MAGNETIC TECHNOLOGIES, Inc.

10.4.3. Arnold Magnetic Technologies

10.4.4. VACUUMSCHMELZE GmbH & Co. KG

10.4.5. TDK Corporation

10.4.6. Hitachi Metals, Ltd.

10.4.7. Baotou Tianhe Magnetics Technology Co., Ltd.

10.4.8. GOUDSMIT MAGNETICS Group

10.4.9. Thomas and Skinner Inc.

10.4.10. Pacific Metals Co., Ltd.

11. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Neodymium

• MP Materials
• Iluka Resources
• Phoenix Tailings
• CVMR Corporation
• Lynas Rare Earths Limited
• China Rare Earth Holdings Limited

Cerium

• Iluka Resources
• MP Materials
• CVMR Corporation
• Lynas Rare Earths Limited

Lanthanum

• Iluka Resources
• MP Materials
• CVMR Corporation
• Lynas Rare Earths Limited

Neodymium Magnet 

• Adams Magnetic Products
• DEXTER MAGNETIC TECHNOLOGIES, Inc.
• Arnold Magnetic Technologies
• VACUUMSCHMELZE GmbH & Co. KG
• TDK Corporation
• Hitachi Metals, Ltd. 
• Baotou Tianhe Magnetics Technology Co., Ltd.
• GOUDSMIT MAGNETICS Group
• Thomas and Skinner Inc.
• Pacific Metals Co., Ltd.   .  

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