Highlights
- The U.S. permanent magnet manufacturing sector is undergoing unprecedented regeneration with major investments from companies like MP Materials, Quadrant, and MS-Schramberg.
- By 2029-2030, the U.S. could have multiple operational NdFeB magnet facilities supplying electric vehicle, defense, and wind turbine manufacturers.
- China currently controls over 90% of global sintered NdFeB production and may attempt to undermine Western production through strategic price manipulation and export restrictions.
On LinkedIn today rare earth metals magnetics consulting John Ormerod (opens in a new tab) shared news about the MS Schramberg announcement indicating a U.S. plant is in the works. Ormerod, a magnetics expert, is a Principal at JOC LLC – Consultant to the Global Magnetics, Rare Earths and Metals Industries.
This expert shared that MS-Schramberg GmbH & Co. KG (opens in a new tab) looked to be opening a magnet plant in the USA. As Rare Earth Exchanges (REEx) also reported today, “ no timeline, location, products, manufacturing capabilities. In any case I’ve added it to my list of actual and potential new US magnet entrants below….it is getting crowded!”
Source: JOC LLC
The U.S. Rare Earth Magnet Renaissance- Is China’s Monopoly Finally Under Threat?
The chart shared by magnetics expert John Ormerod paints a striking picture: after decades of collapse, consolidation, and outsourcing, the U.S. permanent magnet manufacturing sector is entering a phase of unprecedented regeneration. Anchored by heavy investment—hundreds of millions in planned NdFeB (neodymium-iron-boron) magnet plants—new and returning players such as MP Materials, Quadrant, USA Rare Earth, and now Germany’s MS-Schramberg are planting the seeds for a restored supply chain.
We can expect early-stage pilot production and pre-commercial capacity from at least three or four of these ventures in two years. By 2029–2030, the U.S. could field multiple fully operational NdFeB magnet facilities—capable of directly supplying electric vehicle, defense, and wind turbine manufacturers.
But the geopolitical battlefield isn’t static. China, which currently controls over 90% of global sintered NdFeB production and virtually all the midstream separation capacity, will not watch passively. Historically, Beijing has wielded price suppression as an economic weapon. During past attempts to build Western rare earth capacity, China strategically flooded global markets with cheap magnets and oxides, driving competitors into insolvency. As the U.S. begins scaling up domestic production, expect Beijing to leverage overcapacity and price manipulation again to undermine profitability, delay commercialization, and fracture investor confidence in emerging Western ventures.
However, this time may be different. The Trump administration’s use of Section 232 authorities, paired with sweeping executive orders declaring rare earths a matter of national security, introduces a level of political and financial backing unseen since the Cold War. U.S. agencies are now actively identifying and funding critical mineral assets, and Congress is advancing reshoring tax incentives, R&D subsidies, and guaranteed procurement. If this political will sustains—and if companies secure off-take agreements early—Western magnet players may be shielded from China’s price war tactics long enough to reach economies of scale.
In the four- to eight-year window, a realistic scenario includes five or more fully operational NdFeB magnet plants in the U.S., potentially supplying up to 25% of domestic demand by 2033. Key risks include delays in permitting, workforce shortages, and dependence on imported oxide feedstocks, which may still be sourced from Chinese refineries. This creates a vulnerability unless integrated upstream partners (e.g., MP Materials or USA Rare Earth) or others in the pipeline can produce separated oxides at home.
China’s likely countermove consists of strategic acquisitions via intermediaries, influence operations targeting environmental review processes, and possibly new restrictions or taxes on magnet alloy or precursor exports.
In sum, MS-Schramberg’s potential entry into U.S. manufacturing is part of a broader industrial awakening. However, as the chart shows, this ecosystem is still fragile and under construction. Whether this becomes a self-sustaining magnet renaissance or another wave of premature overcapacity will depend not just on technological execution, but on sustained policy, investor patience, and how aggressively China decides to defend its grip on one of the world’s most critical supply chains.
Investors can discuss implications at the REEx Forum. (opens in a new tab)
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