Neodymium in Life Sciences–Stable Today, But For How Long?

Highlights

• Neodymium is a vital rare earth metal enabling advanced medical technologies such as:
  • MRI systems
  • Implantable devices
  • Surgical robotics
• China currently dominates over 80% of global neodymium mining
• This dominance creates significant geopolitical and supply chain vulnerabilities for life sciences
• Companies must take the following actions to ensure technological innovation:
  • Proactively develop diversified supply strategies
  • Embrace sustainability
  • Explore alternative materials
  • Engage with emerging policy frameworks

---

Neodymium doesn’t get much attention in everyday conversation. But if you’re working in life sciences or healthcare technology, this rare earth metal is already part of your world. Neodymium isn’t just another component. It’s a strategic enabler for the future of precision medicine, remote diagnostics, and smart therapeutics. Its applications extend across.

• MRI systems, where neodymium magnets enable high-resolution imaging in compact, energy-efficient formats
• Implantable devices like pacemakers and cochlear implants, where miniaturization and reliability are critical
• Surgical robotics and precision tools, where magnetic components support control and sensitivity
• Wearable and portable therapeutic devices, such as neuromodulation systems and drug delivery patches

The reason for this broad use of Neodymium? Its magnetic strength is unmatched for its size.

Rare Earth With Stable Supply

Today, the supply of neodymium feels stable. Most companies in the life sciences sector can source what they need without much friction. But this sense of stability hides a more complex—and more fragile—reality.

Neodymium is in high demand, not just in healthcare, but across fast-growing sectors like electric vehicles, wind turbines, and consumer electronics. These industries are scaling rapidly, pushing global demand for neodymium magnets to new heights. According to the International Energy Agency, demand could triple by 2030.

Here’s the challenge: most of the world’s neodymium comes from one place—China. It dominates not only mining but also the refining and magnet manufacturing processes. China currently controls over 80% of global neodymium mining and over 90% of magnet manufacturing.

This creates a systemic vulnerability for every industry that depends on the element—including life sciences. We’ve already seen what can happen. In 2023, China imposed export controls on gallium and germanium, shaking up the semiconductor and defense industries. If neodymium becomes the next geopolitical lever, life sciences could be caught in the crossfire. With China’s life science sector currently rising to new levels of innovation and competitiveness, imposing stricter controls also has a life science commercial driver.

So what can companies do?

First, don’t wait for a disruption. It’s about looking beyond China. Some nations—Australia, Canada, the U.S., and EU members—are building up rare earth supply chains to reduce dependency (and remember this covers upstream and midstream to downstream).  Japan has shown how long-term investment in alternative sources can protect against disruption. Life sciences companies should be actively exploring and building relationships with these emerging suppliers.

Second, there’s value in planning for uncertainty. Strategic stockpiling isn’t new in pharma, but it’s rarely applied to raw materials like neodymium. That needs to change. Predictive models powered by AI can help companies better forecast demand across their product pipelines and adjust inventory strategies accordingly.

But resilience isn’t just about sourcing more material. It’s also about using less of it—and reusing what’s already in circulation.

Sustainability

That’s where sustainability comes in. Neodymium can be recovered from decommissioned MRI systems, discarded implants, or even old EV motors and smartphones. Until recently, recycling was costly and inefficient. That’s starting to shift. Better recovery technologies and circular business models are gaining traction, especially in Europe. Some OEMs are designing products with end-of-life recycling in mind—an approach that’s smart, sustainable, and increasingly expected by regulators and customers alike. Examples: Philips (NL), Healthineers (D), and Cochlear (AU).

• Philips has a Circular Equipment program where MRI, CT, and ultrasound systems are designed for disassembly, reuse, and refurbishment. Their “BlueSeal” MRI magnet (opens in a new tab) is a helium-free, sealed system that simplifies lifecycle management and reduces environmental impact.
• Siemens Healthineers (opens in a new tab) incorporates eco-design principles in early R&D stages for imaging and lab diagnostic devices. Their goal is to reduce hazardous material use, improve modularity, and enable component reuse.
• Cochlear (opens in a new tab) has started piloting programs for recovering used sound processors and implant components. Devices are collected after upgrade cycles and processed for metal and polymer recovery.

Innovation

Innovation will also play a role in reducing dependency. Engineers are testing new types of magnets. Although neodymium’s properties are hard to match, R&D is closing the gap:

• Iron nitride (Fe₁₆N₂)-based magnets offer promising performance with lower environmental impact
• Magnet-free motion control systems, using advanced software and mechanical design, are under development insurgical robotics
• Hybrid magnet configurations are reducing neodymium content without sacrificing function

While these substitutes can’t yet match neodymium’s performance, they’re getting closer. In the meantime, smarter design can stretch existing supply—by reducing the amount of neodymium used per device without sacrificing function. Medical device developers should consider modular product architectures that allow future material substitution. That way, even if supply tightens, your designs remain viable. Some manufacturers are even developing magnet-free alternatives for surgical robotics and portable therapeutics. As example HaptX (U.S.), Cambridge Consultants (UK) and Myomo (D):

• HaptX (opens in a new tab) develops surgical training gloves and exoskeletons that use pneumatic actuation instead of magnetic motors. Their systems deliver precise force feedback using microfluidic technology—no magnets involved.
• Cambridge Consultants (opens in a new tab) has been prototyping soft robotic systems that rely on fluidic pressure and compliant mechanisms instead of electromagnetic motors. These can be applied in laparoscopic tools or microsurgery robots.
• Myomo’s MyoPro (opens in a new tab) is a wearable orthosis for patients with neuromuscular disorders. The company are exploring electromyography (EMG)-controlled pneumatic systems that could offer lightweight, magnet-free movement support for rehabilitation and assistive wearables.

Politics & Acts

All of this unfolds against a backdrop of intensifying geopolitics. Governments across the globe now perceive access to critical minerals as a cornerstone of economic resilience and national security. The U.S. Inflation Reduction Act and the EU’s Critical Raw Materials Act are emblematic of this shift, each incentivizing domestic production, fostering transparency across the supply chain, and driving collaborations between public and private sectors. These policies are not just bureaucratic hurdles—they are strategic levers that can reshape entire industries. Companies that proactively monitor and engage with such regulatory developments—by participating in trade associations, forging partnerships with policymakers, and staying attuned to legislative trends—position themselves to anticipate and adapt to change, turning potential policy risks into competitive advantages.

Beyond regulatory compliance, there’s an increasing emphasis on building mineral literacy within organizations. Understanding global supply routes, export controls, and the nuances of bilateral agreements has become essential for life sciences companies that want to secure their innovation pipelines. By cultivating agility, intelligence, and strong cross-sector alliances, forward-thinking companies can transform today’s political uncertainties into opportunities for sustainable growth and leadership in the evolving materials landscape.

Act Now

Ultimately, neodymium is more than just a component. It’s a vital enabler of some of the most transformative tools in modern medicine. But its availability is no longer something you can take for granted.

If you’re responsible for R&D, sourcing, or long-term strategy in a life sciences company, now is the time to act. Build a diversified supply base. Rethink how materials move through your value chain. Future-proof your designs. And keep a close eye on the political currents shaping global trade. Life science companies must operate with the same mindset as aerospace, military and energy firms:

• Build intelligence around mineral trade flows and policy decisions
• Participate in industry working groups shaping the future of materials regulation
• Push for transparent, traceable sourcing using blockchain and digital twins

To protect innovation pipelines and global competitiveness, your sourcing strategy should integrate:

• Diverse, geopolitically aware supply partnerships
• Proactive inventory and demand analytics
• Circularity and recycling programs
• Design-for-substitution R&D
• Policy engagement and supply chain transparency tools

The consequences of being unprepared could delay product launches, restrict manufacturing, or limit market access—especially in regions requiring local sourcing disclosures.

Because the real question isn’t whether neodymium is important.

It’s whether you’re ready if it suddenly isn’t available.