Highlights
- SmCo magnet imports increased by 40% in 2025, with non-Chinese sources accounting for the majority of the market.
- NdFeB magnet imports from China have dropped significantly, potentially due to the impact of export controls.
- The divergent import trends reveal strategic sourcing shifts and growing awareness of geopolitical risk in the rare earth magnet supply chain.
The U.S. rare earth magnet supply chain is undergoing a significant structural adjustment in early 2025, as revealed by newly released U.S. import data comparing Q1 2025 to Q1 2024. Analyst John Ormerod (opens in a new tab) summed it up aptly: “A tale of two rare earth magnet imports.”
SmCo (Samarium-Cobalt) Magnets Surge—Non-China Dominates
Sintered samarium-cobalt (SmCo) magnet imports into the U.S. rose sharply in 2025. Year-to-date (YTD) imports reached $3.13 million, more than 40% higher than the same period in 2024 ($2.25 million). What’s more notable is the shift in source:
- Imports from China made up just $1.23 million of the total in 2025, compared to $487,896 in 2024.
- This implies a strong increase in non-Chinese imports, likely from suppliers such as VACUUMSCHMELZE, Arnold Magnetic Technologies, and Japanese manufacturers.
NdFeB (Neodymium-Iron-Boron) Magnet Imports Decline
In contrast, imports of sintered NdFeB magnets—critical for EV motors, defense systems, and wind turbines—dropped significantly.
- U.S. total imports in Q1 2025 fell to $53.6 million, down from $69.9 million during the same period in 2024.
- Chinese-origin NdFeB imports also declined, dropping to $45.4 million in Q1 2025 from $58.4 million the year before.
This suggests either a market slowdown, reduced demand, or strategic sourcing hesitations following China’s early April 2024 announcement of export controls on certain magnet-related technologies and materials.
Strategic Implications
As Ormerod notes, “The SmCo market predicted the Chinese export controls while the NdFeB market didn’t… or it's some statistical anomaly.” SmCo buyers may have better anticipated geopolitical disruptions, pivoting earlier to alternative sources. Meanwhile, the NdFeB sector—more deeply tied to Chinese production—has yet to show a decisive response or diversification strategy.
Conclusion
The divergence in rare earth magnet imports highlights a growing awareness of geopolitical risks among U.S. industrial buyers. The SmCo market’s foresight contrasts sharply with the lagging adjustment in NdFeB sourcing, underscoring an urgent need for domestic and allied supply chain development.
Citing John Ormerod, with data sourced from USITC (https://dataweb.usitc.gov/ (opens in a new tab))
Discuss at the REEx Forum. (opens in a new tab)
0 Comments