Highlights

• China dominates global production of sintered neodymium magnets, controlling over 80% of the market with strategic industry consolidation.
• The global sintered neodymium magnet market is projected to grow from USD 25 billion in 2023 to USD 31.3 billion by 2030, driven by demand in the automotive, electronics, and renewable energy sectors.
• These powerful rare earth magnets play critical roles in high-tech applications like electric vehicles, wind turbines, smartphones, and medical devices, enabling smaller and more efficient designs.

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Sintered neodymium magnets, also known as NdFeB magnets, are made using neodymium (a rare earth element), iron, and boron. They are the strongest type of permanent magnets available and play a critical role in many high-tech applications.

These magnets are commonly used in electric vehicles (EVs), wind turbines, smartphones, hard drives, and medical devices like MRI machines. Their exceptional strength allows for smaller, lighter designs in industries requiring high-performance magnets.

Key Production Center

The rare earth element market relies heavily on sintered neodymium, which is a significant driver of demand for neodymium and other rare earths like dysprosium and terbium, used to enhance magnet performance in high-temperature environments.

China dominates global production, accounting for over 80% of the market, with companies like China Rare Earth Holdings (opens in a new tab) and Zhong Ke San Huan (opens in a new tab) leading the industry. Outside of China, companies such as Lynas Rare Earths in Australia and MP Materials in the U.S. are striving to expand production to reduce dependency on Chinese supply.

Primary Verticals

The primary users of sintered neodymium magnets are industries like automotive, renewable energy, electronics, and healthcare, where their efficiency and durability are critical.

Pricing pressures come from supply chain bottlenecks, geopolitical tensions, and the environmental impact of rare earth mining and refining. As global demand for clean energy and advanced technologies grows, these magnets are increasingly crucial, but the industry faces challenges in ensuring sustainable and diversified production.

Consolidation

It's important to note that in December 2021, China consolidated several state-owned enterprises to form the China Rare Earth Group Co. Ltd (opens in a new tab). This new entity combined the rare earth assets of companies such as China Minmetals Corporation, Aluminum Corporation of China (Chinalco), and Ganzhou Rare Earth Group Co. The merger aimed to enhance China's control over the rare earth market by increasing efficiency and pricing power.

China Rare Earth Group was established in December 2021 through the merger of several key rare earth producers, including China Minmetals Corp, Aluminum Corp of China, and Ganzhou Rare Earth Group Co. 

In essence, instead of a specific acquisition, there was a merger and restructuring within the Chinese rare earth industry, leading to the formation of China Rare Earth Group as a dominant player. 

China Rare Earth Group's formation represents a consolidation of state-owned entities within the industry, signifying a strategic move by the Chinese government to control and manage its rare earth resources including NdFeB magnets.

Market Size Estimates

The global market for sintered neodymium magnets has been experiencing significant growth. In 2023, the market size was valued at approximately USD 25 billion and is projected to reach USD 31.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 3.25% during the forecast period, according to Verified Market Reports (opens in a new tab).

This growth is driven by the increasing demand for consumer electronics, automotive applications, and renewable energy technologies, where these magnets play a crucial role. The Asia-Pacific region, particularly China, dominates the production and consumption of sintered neodymium magnets, contributing significantly to the market's expansion.

However, the market faces challenges such as the price volatility of rare earth materials and supply chain uncertainties, which could impact future growth prospects. Rare Earth Exchanges has suggested that incoming POTUS Donald Trump and potential policies (exit from the Paris Agreement, reduction of electric vehicle targets, and the like) could impact the prices of this market.