Rare Earth Magnets Market Size, Share, Opportunities, And Trends By End-User (Automotive, Consumer Electronics, Medical, Energy, Others), By Type (Neodymium-Iron-Boron (NdFeB) Magnets, Samarium-Cobalt (SmCo) Magnets), And By Geography - Forecasts From 2023 To 2028

The rare earth magnets market is projected to grow at a CAGR of 8.05% to reach US$24.501 billion in 2028 from US$14.246 billion in 2021.

Strong permanent magnets manufactured from alloys of rare-earth elements are known as rare-earth magnets. The strongest permanent magnets available are rare-earth magnets, which generate magnetic fields that are much stronger than those produced by ferrite or alnico magnets. While ferrite or ceramic magnets normally create magnetic fields between 0.5 and 1 tesla, rare-earth magnets can produce fields as high as 1.2 tesla. Samarium Cobalt (SmCo) and Neodymium (Nd-Fe-B) are the two most prevalent forms of rare earth magnet materials. They both share characteristics and crystal structures since they belong to the same metal series. Both kinds are notoriously fragile and incredibly strong. Due to their extraordinary fragility and susceptibility to corrosion, rare-earth magnets are frequently plated or coated to prevent them from shattering, chipping, or disintegrating into powder.

The rare-earth magnets industry is expected to expand as a result of increased consumption of consumer commodities, and technological advancements in the automobile sector.

The market for rare earth elements is being pushed by expanding sales of electronic products including cell devices, televisions, and desktops due to rising consumer expenditure and global internet penetration. The sale of hybrid and electric automobiles is increasing globally as a result of rising consumer consciousness and regulatory reforms and programs, which are driving the rare earth elements market ahead. In addition, the market for rare earth magnets is anticipated to gain from a significant development of the renewable energy output sector as a result of growing industrialization, population growth, and rising electricity demand. Due to the widespread usage of these magnets in the production process of automobiles, the market for rare-earth magnets has been greatly influenced by the growth of the automobile industry.

Fluctuations in the prices of raw materials for manufacture and restrictions placed by leading countries impede the expansion of this sector.

One of the main causes of the market's supply chains becoming unstable is the surge in energy prices and unexpected swings in raw material prices, which makes it challenging for manufacturers to deliver high-quality goods at competitive pricing. The quality and output of the magnets are affected by these changing costs, which raises the cost of the magnets for consumers and lowers the demand for rare-earth magnets. Due to China's restrictions on exporting rare earth elements to other countries, there are price volatilities in rare earth materials like dysprosium and neodymium which is anticipated to hinder the rare earth magnet industry.

Key Developments

• In April 2020, Neodymium Iron Boron (NdFeB) Permanent Magnet Manufacturing Equipment Formerly owned and operated in North Carolina by Hitachi Metals America, Ltd. was acquired by USA Rare Earth, LLC, the funding and development partner of the Round Top Heavy Rare Earth and Critical Minerals Project in West Texas. It was anticipated that the equipment would be sufficient to boost rare-earth magnet production in the United States and, with the addition of a few readily available components, could manufacture at least 2,000 tonnes of rare-earth magnets yearly.
• MagDev Ltd., a UK-based maker of magnets and magnetic assemblies, was officially bought by Bunting Magnetics, a major participant in this sector, in October 2021. As a global magnetics organisation, Bunting provided a wider range of magnetic solutions and technological knowledge owing to this purchase. In addition to significant testing and in-house machining capabilities, MagDev's Swindon, UK, facility also features more than 1,100 square metres (12,000 square feet) of storage space. MagDev is a top producer of industrial and custom magnets, with a focus on offering permanent magnets, magnetic assemblies, and soft magnetic products in a range of forms, dimensions, and grades, each with magnetic qualities suited to meet the needs of particular applications.

Regional Insights

The Asia Pacific region's expanding nations, including China, India, and Japan, have a high demand for automobiles, which is fuelling the regional market demand. The primary producer and supplier of rare-earth metals and magnets is China. According to data from the US Department of Energy, China produced 92% of all magnets produced worldwide each year and accounted for around 58% of all rare earth mining worldwide in 2020. Further, major manufacturers including Tata Motors, Honda, Toyota, and Hyundai are aiming to expand their presence in these nations. According to their annual report, Tata Motors sold a combined total of 789K automobiles in India and China in 2022, and they had roughly 11 production facilities and 2 R&D facilities there. As a result, the market for rare earth magnets is anticipated to expand quickly due to the need to boost these companies' manufacturing capacity.

Further, according to the US Department of Energy (DOE), the rare-earth magnet market in Europe is limited and accounts for less than 1% of the world's production of rare-earth mines. Although there are resources in this area, difficulties with extraction and processing them constrain its expansion. The majority of this market in North America is dominated by the United States. In 2021, the US imported around 540 metric tonnes of rare-earth metals and exported about 29 metric tonnes of them, according to US Geological Survey reports. Further, according to US Geological Survey data, the USA Rare Earth Magnet Plant was anticipated to produce 2,000 tonnes per year and generate more than US$150 million in yearly sales in 2021.

Rare Earth Magnets Market Scope:

Key Market Segments

• By End-User
  • Automotive
  • Consumer electronics
  • Medical
  • Energy
  • Others
• By Type
  • Neodymium-Iron-Boron (NdFeB) Magnets
  • Samarium-Cobalt (SmCo) Magnets
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Others
  • Middle East And Africa
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Others