Neodymium Market Size & Trends
Estimated to be USD 5.28 billion in 2024, the global neodymium market size is predicted to rise at a CAGR of 6.7% from 2025 to 2030. Driven mostly by the growing need for permanent magnets across many sectors, the neodymium industry is seeing robust expansion.
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Key Highlights
- The neodymium industry in Asia Pacific is experiencing robust growth, driven by the rapid expansion of key industries.
- We expect the China neodymium market to grow during the forecast period.
- By application, the magnets segment held over 60% of the revenue share in 2024.
- By end use, the automotive segment held a revenue share of 33.0% in 2024.
Neodymium magnets, also known as NdFeB magnets, are the strongest rare-earth magnets available and are integral to numerous high-performance applications. Their superior magnetic strength and compact size make them ideal for use in electric motors, wind turbines, and consumer electronics. As the world shifts toward energy-efficient and compact technologies, the need for neodymium-based components has seen a substantial rise.
Due to their strength and compactness, neodymium magnets are crucial in electric motors, wind turbines, and electronics. In March 2024, LG Innotek announced a major scale-up of its neodymium magnet production to meet global tech firms' demand, underscoring this material's importance in emerging technologies. The trend toward energy-efficient and miniaturized devices continues to reinforce the relevance of neodymium magnets in global manufacturing.
A major growth driver for the neodymium industry is the rapid expansion of electric vehicle (EV) production. In 2024, Tesla reported a production milestone of over 2.1 million EVs, while BYD surpassed 3 million units in the same year. Both manufacturers use neodymium-based permanent magnets in their electric motors. Additionally, General Motors announced its plan to source rare earth magnets locally for its Ultium EV platform starting in 2025, reflecting the strategic importance of neodymium in the automotive supply chain. The global push toward clean mobility continues to drive neodymium demand significantly.
The wind energy sector has also become a key consumer of neodymium. In 2024, Siemens Gamesa launched its latest offshore wind turbine model featuring a 15 MW capacity using direct-drive technology, which relies heavily on neodymium magnets. As nations like the UK, China, and India accelerate their wind energy targets under climate action plans, manufacturers are scaling up turbine production, directly contributing to a surge in neodymium consumption for magnet assemblies.
Consumer electronics represent another powerful growth driver for the neodymium market. Global smartphone shipments rebounded in 2024, reaching nearly 1.3 billion units, driven by demand for AI-integrated devices and 5G expansion. Smartphones, tablets, and laptops utilize small but powerful neodymium magnets in speakers, vibration units, and cameras. Apple, for instance, continues to use these magnets in its MagSafe accessories and internal components, further driving the demand.
Applications in defense and aerospace also significantly contribute to market growth. In 2024, the U.S. Department of Defense signed a rare earth elements supply agreement with MP Materials to strengthen domestic sourcing of neodymium magnets for military hardware. These magnets are essential in precision-guided missiles, advanced radar systems, and drones. As geopolitical tensions and defense modernization programs gain traction globally, neodymium’s strategic role in defense technologies is becoming more pronounced, contributing to long-term market expansion.
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Report Coverage & Deliverables
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- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Drivers, Opportunities & Restraints
The neodymium market is primarily driven by its extensive use in manufacturing high-performance permanent magnets, critical in various applications, including electric motors, wind turbines, and consumer electronics. The increasing global push for clean energy and sustainable mobility solutions has significantly boosted the demand for neodymium, especially in electric vehicles and renewable energy sectors. Additionally, advancements in miniaturization and energy-efficient technologies further enhance the demand for compact and powerful magnet materials like neodymium.
There is considerable opportunity for market growth due to the rising adoption of electric mobility and the global transition toward renewable energy sources. Investments in energy storage systems, smart electronics, and infrastructure for electric mobility are expanding rapidly, creating new avenues for neodymium-based applications. Moreover, research into recycling rare earth elements and developing more efficient magnet production processes could lead to cost savings and secure supply chains, further expanding the market potential.
Despite strong demand, the neodymium industry faces challenges related to supply chain concentration and environmental concerns. Most global neodymium production is concentrated in a few countries, leading to geopolitical and trade-related risks. Furthermore, the mining and processing of rare earth elements, including neodymium, can have significant environmental impacts, often leading to regulatory scrutiny and community resistance. These factors may hinder production expansion and disrupt global supply stability.
Application Insights
Based on application, magnets held the largest revenue share of over 60% in 2024. NdFeB is a powerful permanent magnet, which finds application in producing small-sized electronics such as loudspeakers, smartphones, and computer hard drives. Additionally, EVs widely favor them due to their lower cost and lighter weight compared to samarium cobalt (SmCo) magnets.
Catalysts held the second-largest revenue share of the global neodymium industry in 2024. The production of butadiene elastomers and polymerization reactions relies on neodymium-based catalysts due to their high catalytic activity. The butadiene elastomer manufactured using a neodymium catalyst consists of high CIS content, which helps to produce high-impact Butadiene Rubber suitable for tire manufacturers and other applications.
End Use Insights
Based on end use, automotive had a revenue share of over 33.0% of the global market in 2024. Automotive is a vital end-use industry for the market, owing to the extensive use of NdFeB magnets in the automobile sector. NdFeB magnets serve as the static component of electric motors, which are increasingly in demand due to technological advancements. For instance, vehicles use electric motors in their windows, windshield wipers, and door-closing systems. The performance of these magnets is better in the case of smaller and lighter motors. As the auto industry strives to reduce weight, we anticipate a further rise in the application of neodymium-based magnets.
Electrical & electronics is anticipated to register a CAGR of 6.6%, in terms of revenue, over the forecast period. Most electronic devices utilize neodymium magnets due to their high magnetic strength and wide temperature range performance. For instance, according to Arnold Magnetic Technologies, approximately 0.2 grams of neodymium magnets are utilized per earbud.
Neodymium is also used in fiber optic technologies that power telephones and internet communication. Speakers in mobile phones primarily use N48 and N52 magnetic grades. These are the strongest performance grades available and can endure high temperatures during the manufacturing process. Therefore, the electrical & electronics segment is increasingly using it, and we expect this trend to persist throughout the forecast period due to ongoing innovation.
Regional Insights
The neodymium market in Europe is experiencing significant growth, primarily driven by the expansion of renewable energy initiatives. Neodymium magnets are essential in wind turbines, particularly in direct-drive systems, which offer higher efficiency and lower maintenance. As Europe intensifies its commitment to clean energy, the demand for wind turbines and, consequently, neodymium magnets has surged. The European Raw Materials Alliance (ERMA) has identified 14 projects to establish a robust rare earths industry within the EU, with an investment volume of USD 1.92 billion.
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Asia Pacific Neodymium Market Trends
The neodymium industry in Asia Pacific is experiencing robust growth, driven by the rapid expansion of key industries such as EVs, renewable energy, and consumer electronics. Countries like China, Japan, South Korea, and India are at the forefront of this surge, leveraging their manufacturing capabilities and technological advancements. The increasing demand for high-performance permanent magnets, essential components in EV motors, wind turbines, and various electronic devices, is a significant factor propelling the market forward for propellbased applications across the region. Additionally, government initiatives promoting clean energy and sustainable technologies further bolster the adoption of neodymium-
During the forecast period, we expect the China neodymium market to grow. China, in particular, plays a dominant role in the global neodymium magnet market. According to a magnet industry consultant, global neodymium magnet production in 2024 was expected to be between 220,000 and 240,000 tons, with at least 85% originating from China. Some estimates suggest this share could be as high as 90%. While countries like Japan and Vietnam also contribute to production, their outputs are relatively minor. Despite the emergence of multiple neodymium magnet projects in the U.S., it is noted that these will not meaningfully reduce China’s overwhelming dominance in the near term. China’s vast rare earth reserves, established refining infrastructure, and aggressive policy support ensure its central role in meeting domestic demand and shaping global supply chains for neodymium-based technologies.
North America Neodymium Market Trends
The neodymium industry in North America is experiencing significant growth, primarily driven by the increasing demand for neodymium magnets in EVs, wind energy, and consumer electronics. Due to their high magnetic strength and efficiency, neodymium magnets are essential components in EV motors and wind turbine generators. The rising adoption of EVs and the expansion of renewable energy infrastructure fuel the demand for these magnets. Additionally, the consumer electronics sector, including smartphones, laptops, and audio devices, relies heavily on neodymium magnets for compact and powerful components, further propelling market growth.
U.S. Neodymium Market Trends
The U.S. neodymium industry is growing steadily. The U.S. Department of Defense has labeled rare earths, including neodymium, essential for national security, prompting initiatives to build a resilient domestic supply chain. Furthermore, the increasing use of neodymium magnets in medical imaging devices like MRIs and consumer electronics such as speakers, headphones, and hard drives reinforces widespread industrial reliance. These diverse and strategic applications are key drivers for sustained market growth outside the EV space.
Middle East & Africa Neodymium Market Trends
The neodymium industry in the Middle East and Africa (MEA) is poised for significant growth, driven by the region's increasing focus on renewable energy and strategic investments in mining. Countries like Morocco and Egypt are leading the charge in renewable energy initiatives, with substantial investments in wind and solar power projects. Neodymium magnets, essential components in wind turbine generators, are in high demand due to their efficiency and reliability.
Key Neodymium Company Insights
Some of the key players operating in the market include Arafura Rare Earths and China Rare Earth Holdings Limited (CREH).
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Arafura Rare Earths is an Australian mining company headquartered in Perth, Western Australia. Arafura's primary offering is high-purity NdPr oxide, derived from the Nolans Project. This product is essential for producing Neodymium Iron Boron (NdFeB) magnets, which are integral to electric vehicles, wind turbines, robotics, and consumer electronics. Arafura has secured binding offtake agreements with major companies such as Hyundai, Kia, Siemens Gamesa, and Traxys Europe SA, aiming to supply up to 2,020 tonnes of NdPr oxide annually.
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China Rare Earth Holdings Limited (CREH) is a Hong Kong-listed investment holding company specializing in producing and selling rare earth and refractory products. CREH offers a range of products, including neodymium oxide and neodymium iron boron (NdFeB) magnets. These materials are essential for various applications such as electric vehicles, wind turbines, and consumer electronics. CREH's neodymium products are known for their high purity and quality, catering to the growing global demand for rare earth elements.
Key Neodymium Companies
The following are the leading companies in the neodymium market. These companies collectively hold the largest market share and dictate industry trends.
- Arafura Rare Earths
- China Rare Earth Holdings Limited
- Lynas Rare Earths Ltd
- METALL RARE EARTH LIMITED
- MP MATERIALS
- Peak Rare Earths
- Rainbow Rare Earths Limited
- Texas Mineral Resources Corp.
- HEFA Rare Earth
- Greenland Minerals Ltd.
Recent Developments
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In April 2025, Belgian chemical company Solvay launched an expansion of its rare earth processing operations at its La Rochelle facility in France, aiming to regain its former prominence in the sector amid new export restrictions imposed by China. The expansion focuses initially on two critical rare earth elements, neodymium and praseodymium, essential for manufacturing super-strong permanent magnets used in EVs and wind turbines.
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In April 2025, the U.S. launched a large-scale program to reclaim rare earth elements (REEs) from hard disk drives (HDDs), which are essential components of cloud data center infrastructure. HDDs utilize rare earths such as neodymium (Nd), praseodymium (Pr), and dysprosium (Dy) for their magnetic properties, enabling precise data reading and writing.
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In February 2025, MP Materials inaugurated its first full-scale facility for manufacturing rare earth magnets in Fort Worth, Texas, a major milestone toward reestablishing a domestic supply chain for critical magnet components in the United States. This new facility produces neodymium-praseodymium (NdPr) metal and sintered neodymium-iron-boron (NdFeB) magnets, which are essential for high-performance electric motors used in electric vehicles, defense systems, robotics, and consumer electronics.
Neodymium Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 5.27 billion |
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Revenue forecast in 2030 |
USD 7.30 billion |
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Growth rate |
CAGR of 6.7% from 2025 to 2030 |
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Base year for estimation |
2024 |
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Historical data |
2018-2023 |
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Forecast period |
2025-2030 |
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Quantitative units |
Revenue in USD million/billion, volume in tons, and CAGR from 2025 to 2030 |
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Report coverage |
Revenue forecast, volume forecast, competitive landscape, growth factors, and trends |
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Segments covered |
Application, end use, region |
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Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country scope |
U.S.; Canada; Mexico; Germany; UK; France; India; China; Japan; Brazil; South Africa |
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Key companies profiled |
Arafura Rare Earths; China Rare Earth Holdings Limited; Lynas Rare Earths Ltd; METALL RARE EARTH LIMITED; MP MATERIALS; Peak Rare Earths; Rainbow Rare Earths; Texas Mineral Resources Corp.; HEFA Rare Earth; Greenland Minerals Ltd. |
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Customization scope |
We offer free report customization with every purchase, which is equivalent to up to 8 analysts' working days. Changes or additions to the scope of the country, region, and segment are possible. |
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Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options. |
Global Neodymium Market Report Segmentation
This report forecasts volume & revenue growth at the global, regional, and country levels. It provides an analysis of the latest industry trends and opportunities in each of the subsegments from 2018 to 2030. For this study, MIR has segmented the neodymium market report based on application, end use, and region
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Application Outlook (Volume, Tons; Revenue, USD Million, 2018-2030)
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Magnets
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Catalyst
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Ceramic & Glass
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Others
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End Use Outlook (Volume, Tons; Revenue, USD Million, 2018-2030)
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Automotive
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Electrical & Electronics
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Wind Energy
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Others
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Regional Outlook (Volume, Tons; Revenue, USD Million, 2018-2030)
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North America
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U.S.
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Canada
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Mexico
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Europe
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Germany
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France
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UK
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Asia Pacific
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China
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India
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Japan
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Latin America
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Brazil
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Middle East & Africa
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South Africa
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