Highlights
- China dominates global rare earth magnet production with a 90% market share.
- Geopolitical tensions are driving diversification efforts.
- North America, Europe, and other Asian countries are investing in domestic rare earth magnet production and recycling.
- The aim is to reduce dependency on Chinese imports.
- The rare earth magnet market is evolving from a functional input to a strategic asset.
- Governments and companies are seeking supply chain resilience.
The global rare earth magnet market, valued at $19.5 billion in 2024 and projected to reach $30.3 billion by 2033 (IMARC Group), is undergoing a strategic realignment. Surging demand from electric vehicles, renewable energy, and high-tech sectors is prompting nations to reassess their dependency on Chinese supply. Neodymium-iron-boron (NdFeB) magnets remain central to this shift, anchoring the technological backbone of the energy transition.
What follows is a sampling of some of the players in the market.
China – The Dominant Force
China remains the overwhelming leader, accounting for nearly 90% of the global rare earth magnet output. In 2024, it exported over 58,000 tonnes of magnets and alloys, marking a 10% increase from the previous year (Adamas Intelligence). Industry giants such as Beijing Zhong Ke San Huan Hi-Tech (opens in a new tab), JL MAG (opens in a new tab), Yunsheng Company (opens in a new tab), and ZHmag (opens in a new tab) benefit from vertically integrated supply chains and state-backed innovation, making China not just a volume leader but also a technological pace-setter. However, mounting geopolitical risks and Beijing’s tightening grip on exports are triggering alarm in Western capitals and boardrooms alike.
North America – Strategic Onshoring Begins
In North America, the U.S. is finally assembling the pieces for a domestic rare earth magnet supply chain. MP Materials (opens in a new tab), headquartered at the Mountain Pass mine in California, has initiated separate NdPr production and is building a large-scale magnet plant in Fort Worth, Texas. These moves signal an end-to-end integration strategy critical for reducing dependence on Chinese imports (INN, CSIS). Meanwhile, Canada’s Neo Performance Materials (opens in a new tab) continues to operate globally significant processing and magnet production facilities, focusing on supplying premium magnets to the electric vehicle (EV) and wind sectors. Note that disruptive ventures such as Niron Magnetics (opens in a new tab), a spinoff of the University of Minnesota, are working on non-rare earth magnets.
Europe–Recycling and Resilience
Europe is focusing on sustainability and supply security. Germany, in particular, is emerging as a regional hub for both the production and recycling of rare earth magnets. Heraeus Remloy (opens in a new tab) has built the EU’s largest recycling facility in Bitterfeld, which is on track to supply over 30% of Europe’s magnet demand through recycled NdFeB materials (Reuters).
Additionally, Germany hosts several other key manufacturers, including MS-Schramberg (opens in a new tab), Tridelta Magnetsystem (opens in a new tab)e, RHEINMAGNET, (opens in a new tab) Magnetfabrik Bonn (opens in a new tab), and Rowe Magnetics as well as alloy and downstream solution maker Vacuumschmelze, (opens in a new tab) all of which support diversified end-use markets across the continent. These players are investing in cleaner processes and shorter supply routes, aligning with the EU’s goal of strategic autonomy in critical minerals.
Asia (Ex-China)–Rising Regional Champions
Beyond China, Asian players are gaining momentum. South Korea’s Star Group Ind. Co., Ltd (opens in a new tab). has positioned itself as a high-grade NdFeB supplier to Korea’s electronics and automotive sectors. With vertically integrated capabilities and a growing focus on research and development, Star Group is a serious contender in the East Asian magnet value chain (as reported by MarketWatch).
In Japan, firms like Hitachi Metals (now Proterial) (opens in a new tab) maintain strong technological leadership but face increasing competition from up-and-coming regional players. Meanwhile, in Australia, Lynas Rare Earths (opens in a new tab) is ramping up production at Mount Weld and expanding its refining and processing capacity in both Australia and Texas to bypass Chinese chokepoints entirely (NAI500).
Strategic Outlook
As nations confront the vulnerabilities of a single-source supply model, rare earth magnets are no longer treated as just functional inputs—they are now classified as strategic assets. Governments in the U.S., EU, Australia, and South Korea are investing heavily in domestic and allied supply chains. Simultaneously, magnet recycling and next-generation manufacturing methods are gaining traction as viable solutions to environmental and geopolitical risk. While China’s grip remains firm, the playing field is shifting. The race for magnet resilience has begun.
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