Highlights
- Rare earth magnets, primarily NdFeB and SmCo, are crucial in:
- Electronics
- EVs (Electric Vehicles)
- Renewable energy
- Defense sectors
- Market for rare earth magnets is projected to reach $29-36 billion by 2031.
- China dominates rare earth magnet production.
- Companies outside China are working to diversify the supply chain due to:
- Increasing demand
- Geopolitical concerns
- Disruptive technologies reshaping the industry:
- Recycling
- Magnet design optimization
- Rare earth-free alternatives
- 3D printing
- These technologies address supply chain and environmental challenges.
Rare earth magnets are powerful magnets made from alloys of rare earth elements, specifically neodymium (NdFeB) and samarium-cobalt (SmCo). Known for their strong magnetic fields, they are essential in various applications, especially where high strength in a compact size is required. Rare earth magnets have become critical in several high-tech and industrial sectors due to their magnetic power, durability, and ability to perform reliably under extreme conditions.
Rare Earth Exchanges breaks down the types of magnets, applications, market size and growth and any disruption in the markets.
Types of Rare Earth Magnets
Neodymium-Iron-Boron (NdFeB)-based magnets are the most widely used and powerful type of rare earth magnets, and are commonly used in electric vehicle motors, wind turbines, electronics, and medical devices.
Also samarium-Cobalt (SmCo) are used, magnets that are more resistant to corrosion and high temperatures, making them suitable for aerospace, military, and high-temperature applications.
What are some key applications?
As discussed in this media platform rare earth magnets are used across multiple sectors including the following:
| Segment | Summary |
|---|---|
| Electronics | Used in smartphones, hard drives, headphones, and speakers |
| Electronics | Essential in electric vehicles (EVs) for motors and sensors |
| Renewable Energy | Key components in wind turbines |
| Medical Devices | Found in MRI machines, hearing aids, and surgical tools |
| Defense and Aerospace | Vital for navigation systems, radar systems, and other high-precision devices |
Market Size and Growth
The global rare earth magnet market size is expected to grow from $18.5 billion in 2023 to between $29.22 billion and $35.97 billion by 2031:
- Skyquestt: Predicts a CAGR of 5.86% from 2024 to 2031
- Insightaceanalytic: Predicts a CAGR of 7.7% from 2023 to 2031
- IMARC Group: Predicts a CAGR of 5.2% from 2024 to 2032
- PRIMEIQ RESEARCH: Predicts a CAGR of 5.30% from 2022 to 2030
As discussed, the market is expected to grow due to technological advancements and the increasing demand for renewable energy sources. However, there are concerns about a potential undersupply of rare earth elements, with some predicting that the global undersupply of didymium oxide could reach 90,000 tons per year by 2040.
Any number of projections exist, yet another one is projected to expand at a CAGR of 8-10% from 2023 to 2030, driven by:
- Rising Demand for Electric Vehicles (EVs): As the EV market grows, demand for neodymium magnets, critical for EV motors, is surging.
- Renewable Energy Investments: Wind turbines require large quantities of rare earth magnets for their efficient operation.
- Technological Advancements: Ongoing development in electronics, robotics, and medical devices continues to drive demand.
Challenges in the market continue:
- Supply Chain Constraints: China controls the majority of the rare earth mining and magnet production industry, leading to geopolitical risks and supply constraints.
- Environmental Concerns: The extraction and processing of rare earth elements pose environmental challenges due to mining practices and waste byproducts.
What companies are leading the magnet space?
Several companies dominate the rare earth magnet industry, focusing primarily on neodymium and samarium-cobalt magnets. Here are some of the key players:
| Company/Location | Summary |
|---|---|
| China Northern Rare Earth Group High-Tech Co., Ltd. China | One of the largest producers of rare earth products globally, China Northern controls a substantial part of the rare earth supply chain. The company focuses on rare earth mining and processing, contributing significantly to the neodymium magnet market. |
| Lynas Rare Earths Ltd. Australia and Malaysia | Overview: Lynas is one of the few major rare earth producers outside of China, known for its environmentally conscious processing operations. They mine rare earths in Australia and refine them in Malaysia, supplying materials to magnet manufacturers worldwide. |
| Hitachi Metals, Ltd (Proterial (opens in a new tab)) Japan | A global leader in the production of neodymium magnets, Hitachi Metals has a strong presence in the automotive, electronics, and industrial sectors. The company has patented technology in the field of rare earth magnet production, enhancing its market position. |
| Shin-Etsu Chemical Co., Ltd. Japan | Overview: Another prominent Japanese company, Shin-Etsu is a major producer of rare earth magnets, primarily serving the electronics and automotive industries. They have invested in developing high-performance magnets with reduced rare earth content, aiming to lower costs and reliance on specific materials. |
|
Advanced Technology & Materials Co., Ltd. (AT&M)
China | Overview: AT&M focuses on high-performance rare earth magnets and serves multiple industries, including automotive, renewable energy, and electronics. The company is known for its research in high-performance NdFeB and SmCo magnets |
| Ningbo Yunsheng Co., Ltd China | A key player in neodymium magnet production, Ningbo Yunsheng supplies a wide range of industries, particularly in electronics and clean energy sectors. They are one of the leading exporters of rare earth magnets from China. |
| Arnold Magnetic Technologies USA | Arnold produces both neodymium and samarium-cobalt magnets and has a strong presence in North America. The company specializes in high-performance magnets for aerospace, automotive, and defense industries and is one of the few U.S.-based rare earth magnet manufacturer |
| MP Materials Corp USA | MP Materials owns and operates Mountain Pass, the only rare earth mining and processing facility in the U.S. They focus on producing raw rare earth materials and are planning expansions into magnet production to reduce U.S. reliance on foreign suppliers. |
| VACUUMSCHMELZE GmbH & Co. KG (VAC) Germany | Overview: VAC specializes in advanced magnetic materials, including rare earth magnets, and has a significant market share in Europe. Their products are used in automotive, energy, and industrial applications. |
Note there are numerous other companies supplying various aspects of this market.
Market Influence and Geopolitical Considerations
China dominates rare earth magnet production due to its control over most of the global supply of rare earth elements. However, companies outside China, such as Lynas, MP Materials, and Arnold Magnetic Technologies, are working to diversify the supply chain, especially amid increasing demand from sectors like renewable energy and electric vehicles.
The rare earth magnet market is expanding rapidly, supported by technological and industrial growth sectors but is subject to supply chain and environmental factors that may influence its trajectory.
Advancements Forthcoming?
Several disruptive technologies emerge in the rare earth magnet industry, aiming to address supply chain constraints, reduce environmental impact, and meet rising demand from sectors like electric vehicles and renewable energy. We includes a handful of developments below.
Rare earth recycling represents a promising future. As Rare Earth Exchanges recently reported, recycling rare earth magnets from electronic waste (e-waste) is gaining traction as a sustainable way to recover valuable materials. Companies and research labs are developing efficient methods to extract and recycle rare earth elements from used electronics, such as hard drives and electric motors.
What are some benefits of this approach? Recycling reduces dependence on mining, minimizes environmental impact, and stabilizes supply chains and this could be very useful in reconfiguring dependency on China over time.
An example includes the U.S.-based Urban Mining Co (opens in a new tab)., which uses a process to recover and remanufacture neodymium magnets from e-waste, while Japan’s Hitachi has pioneered robot-based disassembly systems to automate magnet recovery.
What about magnet design optimization, and less rare earth content?
Many companies and research groups are working on magnet designs that maintain high performance while reducing reliance on critical rare earth elements like dysprosium and terbium. These optimized designs use a lower concentration of rare earth elements or substitute them with other materials while preserving magnetic properties.
With this approach companies strive to reduce dependence on scarce and expensive materials, lowers costs and mitigates supply risks.
Examples include Shin-Etsu Chemical (opens in a new tab) and Hitachi Metals (Proterial (opens in a new tab)) as both have developed technologies for producing high-performance magnets with reduced dysprosium content. Toyota has also invested in magnet designs that reduce rare earth usage.
Other approaches center on the development of rare earth-free magnets. Researchers are exploring alternative materials, such as iron nitride (Fe16N2), manganese-bismuth (MnBi), and cobalt-iron alloys, that may serve as effective substitutes for rare earth magnets, especially in applications that do not require the extreme strength of neodymium magnets.
This approach could significantly reduce the reliance on rare earth mining and help diversify material sources.
Companies like Infineon (opens in a new tab) and VACUUMSCHMELZE (opens in a new tab) are exploring rare earth-free solutions for specific applications. However, fully rare earth-free magnets with comparable strength are still in the research phase and may take time to become widely commercialized.
The development of 3D Printing and additive manufacturing of magnets raises interest. Additive manufacturing, or 3D printing, allows for the production of magnets with complex geometries that are difficult to achieve through traditional manufacturing. Researchers are experimenting with sintering rare earth powders directly, creating custom shapes that enhance performance and efficiency.
With the potential of reducing waste, this approach could enable custom designs, and potentially allows on-demand manufacturing. Urban Mining Co. again has developed a patented method for 3D printing NdFeB magnets via recycled materials. Also University of Delaware is a center of research in this field.
Other approaches to consider include high-temperature resistant magnets (AT&M in China and Arnold Magnetic Technologies in the U.S. are working on SmCo magnets and coated NdFeB magnets that provide higher temperature resistance), artificial intelligence (AI) for magnet development and material discovery and The Materials Project at Lawrence Berkeley National Laboratory as well as improve sintering and manufacturing techniques with examples from Ningbo Yunsheng in China and Hitachi Metals, both advancing their sintering processes to improve the quality and durability of their products.
These disruptive technologies aim to diversify material sources, reduce environmental impacts, and meet the increasing demand for rare earth magnets across emerging industries. The combination of recycling, alternative materials, 3D printing, AI-driven material discovery, and improved manufacturing techniques shows promising potential to reshape the rare earth magnet industry in the coming years.
Daniel
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