Highlights

• The rare earth magnets market is expected to grow from $31.3 billion in 2025 to $69.7 billion by 2032, with a 12.1% CAGR.
• China currently dominates the NdFeB magnet production, controlling the majority of global manufacturing capacity.
• Market growth is primarily fueled by the electric vehicles, renewable energy, medical imaging, and advanced electronics sectors.

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Persistence Market Research projects the global rare earth magnets market will surge from US$31.3 billion in 2025 to US$69.7 billion by 2032, reflecting a 12.1% compound annual growth rate (CAGR). Demand is being powered by electric vehicles (EVs), renewable energy, medical imaging, and advanced electronics.

RareEarth Exchanges (REEx)  community—see the REEx Rare Earth Magnet Manufacturer Rankings.  Note that recently, President Trump suggested that by next year, America will be making a surplus of magnets. This is not the case.

The Heart of the Forecast

Neodymium-iron-boron (NdFeB) magnets remain dominant thanks to their unmatched strength-to-size ratio, critical for EV traction motors and wind turbines. Samarium-cobalt (SmCo) magnets, though less common, are valued for aerospace and defense applications. Asia-Pacific—especially China—continues to lead, with vertically integrated supply chains that combine mining, refining, and magnet manufacturing under state-backed strategies.

The Questions Left Hanging

While the report highlights a booming market, it raises uncomfortable truths that retail investors must weigh:

• China’s chokehold: With Beijing still controlling the vast majority of global NdFeB magnet capacity, how can the U.S. and Europe realistically reduce dependency in time to meet surging EV and renewable energy targets?
• Supply chain gaps: Persistence notes opportunities in recycling and new mining ventures, but it does not quantify how much of the forecast depends on actual Western diversification versus continued reliance on China.
• Environmental cost: The report acknowledges environmental challenges, but leaves unsaid how stricter regulations outside China could slow Western production. Will investors see greenwashing or genuine ESG-compliant supply chains?

Investor Lens

For retail investors, the topline numbers may dazzle, but the underlying dynamics are as geopolitical as they are financial. U.S. and European efforts to stand up magnet plants remain years behind Beijing’s scale, regardless of what politicians might announce on news shows. Projects in Canada and Australia may help, but capital intensity and permitting hurdles remain formidable. Recycling is touted as a solution, but current recovery rates are negligible compared to demand.

The headline growth story is real. Yet the unanswered question is whether non-Chinese supply chains can meaningfully participate in this upside—or whether investors will find themselves riding a growth wave still overwhelmingly controlled from Beijing.  Rare Earth Exchanges believes President Trump has done a great job initiating the re-industrialization of rare earth supply chains in America. But we have a lot of work to do.

Source: Persistence Market Research, “_Rare Earth Magnets Market to Reach US$ 69.7 Bn by 2032 with 12.1% CAGR Growth (opens in a new tab)_” (Sept. 10, 2025).

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