Magnet Manufacturing

Rare earth magnet manufacturing turns rare earth alloys, mainly neodymium-iron-boron (NdFeB), into finished permanent magnets, either sintered or bonded. It is the last stage the International Energy Agency lists in the rare earth chain, after metal refining and alloying (IEA, May 2026). The IEA says supply constraints are most acute in magnet manufacturing and in metallization, where refined oxides become metallic alloys or powders (IEA).

Sintered and bonded rare earth magnets

Sintered magnets, used in EV and wind turbine motors, are made by pressing, sintering, machining, coating and final magnetization, the IEA says (IEA). Bonded magnets, used in appliances and smaller devices, blend alloy powder with polymer binders, which allows complex shapes (IEA). The U.S. Department of Energy says sintered magnets suit harsher, higher-temperature conditions and put them at about 93% of the NdFeB market in its February 2022 report (DOE, February 2022).

How sintered NdFeB magnets are made

The DOE describes a powder metallurgy route. The metals are induction melted and strip cast onto a rotating, cooled cylinder to form an alloy with a small grain size. Hydrogen decrepitation may follow to reduce the grain size further, and the strip is then jet milled into powder that can ignite in air, which makes it difficult to ship (DOE).

The powder is aligned and pressed in a magnetic field, then sintered at 1,000 to 1,100°C. The blocks are machined to shape, coated with a 5- to 10-micron nickel film against corrosion, and magnetized in a high magnetic field. The largest material losses occur in machining (DOE).

Grain-boundary diffusion with dysprosium and terbium

Dysprosium and terbium are used mainly in sintered magnets to resist demagnetization above 120°C, with additions of 0.5 to 11 percent (DOE). Total heavy rare earth content can be halved by processes such as grain-boundary diffusion (GBD), the DOE says (DOE). The IEA describes GBD as applying the heavy rare earth to the magnet as a coating (IEA). It says the technology is subject to Chinese technology and equipment export controls, currently has a single equipment supplier outside China, and is highly patented, with litigation disputes already ongoing (IEA).

China's share of rare earth magnet manufacturing

The IEA says China produced about 94% of the world's sintered permanent magnets in 2024, up from around 50% in 2005, and about 80% of bonded magnets, up from around 45% two decades earlier (IEA). Japan remained the second-largest producer in 2024 with around 5% of global production, focused on advanced, high-performance magnets (IEA, May 2026). The DOE put China at about 92% of sintered NdFeB magnet manufacturing in 2020, based on Adamas Intelligence estimates (DOE, February 2022).

Who makes rare earth magnets outside China

• MP Materials, Texas. MP began manufacturing NdFeB magnets at its Independence Facility in Fort Worth in December 2025 and has committed under its Department of War partnership to expand it to a projected 3,000 metric tons a year (MP Materials 10-Q, August 2026). MP said on August 6, 2026 that magnet qualification at Independence had advanced through additional deliveries to customers (MP Materials, August 6, 2026). Its 10X Facility in Northlake is under construction and expected to begin commissioning in 2028, producing an estimated 7,000 metric tons a year once completed and scaled (MP Materials 10-Q, August 2026).
• eVAC Magnetics, South Carolina. VAC Group's Sumter plant began producing commercial magnets in 2025, including sintered magnets for automotive traction motors, and has a nameplate capacity of about 2,000 metric tons a year (VAC, July 16, 2026).
• USA Rare Earth, Oklahoma. The company says its Stillwater facility has recently been commissioned and has commenced commercial production, but it had not yet generated revenue from sintered NdFeB magnets. The same filing lists completing magnet qualification and ramping toward initial commercial production among its near-term uses of cash. A planned Blacksburg, South Carolina plant, in early-stage development, is expected to make 6,400 metric tons a year of sintered magnets (USA Rare Earth 10-Q, August 2026).
• Neo Performance Materials, Estonia. On August 11, 2026, Neo said its European magnet plant was shipping qualification sample magnets, with two to three customer programs on track for commercial production in 2026 (Neo). REEx reported that Neo had no material commercial magnet volume from the Narva plant in the second quarter (REEx, August 2026).
• Noveon Magnetics, Texas. The San Marcos sintered magnet maker said in January 2026 that new funding positions it to expand capacity beyond 2,000 tons a year, and that its process can use recycled materials (Noveon, January 2026).

Why magnet manufacturing is the main bottleneck

The IEA calls magnet production the strongest bottleneck for supply diversification. It counts around 14 additional greenfield projects announced outside China but says expected production remains far below need (IEA), with existing capacity outside China meeting well below 20% of projected magnet demand there in 2035 (IEA). China's December 2023 export restrictions also cover magnet-making equipment for decrepitation, alignment pressing and coating (IEA).

REEx's view is that capacity is not production (REEx). Advanced Magnet Lab made a related point in comments to Congress, REEx reported in July 2026: a sintered block still has to be machined, coated, magnetized, inspected and qualified before it goes into a motor (REEx). In August 2026, an expert team approved under a Chinese national ministry program began working with six major magnet companies in Baotou on technical bottlenecks and process upgrades (REEx).

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