Overview
Global Neodymium Iron Boron Market reached US$ 14.1 billion in 2023 and is expected to reach US$ 22.2 billion by 2031, growing with a CAGR of 5.9% during the forecast period 2024-2031.
The market for Neodymium Iron Boron is expanding rapidly globally because of its critical role in several industries, including electronics, healthcare, automotive and renewable energy. Due to their extraordinary magnetic qualities, NdFeB magnets are in great demand and are essential parts of many contemporary technological applications.
The building of a new rare earth magnet plant in India is anticipated to propel more expansion in the global NdFeB market. The manufacturing of rare earth magnets by India represents a significant shift in the global supply chain, lowering reliance on established suppliers like China and boosting supply security for downstream sectors around the globe.
For instance, in May 2023, according to a release from Engineering Projects (India) Limited, PM Modi formally inaugurated the Vishakhapatnam Rare Earth Permanent Magnet Plant. According to the statement, the EPI built the magnet plant, which cost Rs 165 crores, inside the Bhabha Atomic Research Centre’s current location. For IREL (India) Ltd., a Rare Earth Magnet Plant was built. The announcement further stated that IREL (India) Limited was the intended recipient of the magnet plant’s construction. The newly built plant will be producing the rare earth magnets includes samarium cobalt and neodymium iron boron. The factory will employ BARC’s reduction-diffusion process. Therefore, the Indian market significantly contributes to the growth of the regional market.
Dynamics
Growing Demand from Automotive and Energy Sector
NdFeB magnets are also needed for several components in grid-scale energy storage solutions, like magnetic energy storage systems and lithium-ion batteries. By increasing the energy density and efficiency of storage systems, these magnets help stabilize the grid and facilitate the grid’s integration of renewable energy sources.
The strongest commercial magnets known made of neodymium, iron and boron; these elements also serve as the primary catalysts for the rare earth sector. Because NdFeB permanent magnets are essential to green technologies like wind power and electric cars, there has been a recent surge in demand for magnets.
Around 2 to 2.5 kilograms of NdFeB magnets are contained in every electric vehicle, so as governments encourage "greener" practices, pressure will increase. Car speakers, electric brakes, generator starters, drive motors, sensors and ignition cells all contain these powerful magnets. The primary rare earth elements utilized in strong permanent magnets are terbium (Tb), dysprosium (Dy), neodymium (Nd) and neodymium praseodymium. Light rare earth elements Nd and NdPr are relatively common. The substantial rare earth elements Dy and Tb add significantly to the overall cost of the magnets because they are both costly and uncommon.
Neodymium Iron Boron Magnets Driving Innovation in Electric Vehicle Technology
Electric motors that are small and light can be produced because of the outstanding magnetic features of NdFeB magnets, which include great strength and energy density. Lightweight components in EVs help to enhance the driving range and improve energy efficiency, which lowers the size and cost of the battery needed to achieve a sufficient range.
In December 2022, in electric vehicles, neodymium iron boron magnets operate at higher temperature. As per the Ministry of Science and Technology, scientists have developed inexpensive, rare-earth free magnets, which are in higher demand for electric vehicles and can reduce their cost.
Neodymium iron boron magnets, which are used in electric vehicles, require a strong resistance to demagnetization because they function at temperatures between 150-200 degree Celsius. Therefore, to increase the resistance to demagnetization, dysprosium metal is added as an alloy. In addition to this, the novel approach may also be utilized to commercially produce Nd-Fe-B magnets in India, hence lowering imports of the key components needed by the automotive industry.
Rising Material Costs
The manufacturers of NdFeB magnets might encounter compressed profit margins due to the rising cost of rare earth elements, including dysprosium and neodymium. For companies operating in competitive marketplaces with narrow margins, rising material costs without equivalent increases in product pricing can be detrimental to profitability.
Pressure to absorb or pass on rising material costs to customers may be applied to NdFeB magnet manufacturers. In price-sensitive industries like consumer electronics and automobiles, passing on higher costs to customers can result in price sensitivity and resistance, which could lower demand for NdFeB magnets.

Segment Analysis
The global neodymium iron boron market is segmented based on product, application, end-user and region.
Supply Chain Innovation Driving Growth in the Sintered NdFeB Magnet Market
Sintered NdFeB magnets facilitate the miniaturization of electronic devices and components by delivering high magnetic flux density in small packages. Its capacity to generate powerful magnetic fields in small volumes enables the development of smaller, lighter and more efficient products such as cellphones, computers, hard disc drives and medical devices.
For instance, in July 2023, the adjacent Neo rare earth separations facility in Sillam?e, Estonia will supply the Narva plant with rare earth feedstock from U.S. and other sources. Neodymium-iron-boron sintered magnets will be made from these high-purity magnetic rare earth oxides. Neo officials intend to promote a more cohesive supply chain for sintered permanent rare earth magnets made from manufacturing swarf and recycled end-of-life magnets.
The is Europe’s first mine-to-magnets supply chain and a vast range of technologies that lower carbon dioxide emissions, boost energy efficiency and support EU attempts to become carbon neutral rely on smelted rare earth permanent magnets. Since they boost the motors’ power and efficiency, these magnets are particularly essential to the drivetrains of most modern electric cars. Therefore, the sintered NdFeB magnet product segment contribute significant to the global segmental share.
Geographical Penetration
Mitigating Supply Chain Risks Diversifying the Asia-Pacific’s Role in the NdFeB Magnet Market
The stability of the supply chain is at threat if China or another single location becomes the primary source of NdFeB magnets. By lowering reliance on any one supplier and lowering the risk of supply chain interruptions, geopolitical unrest or trade conflicts, the expanding supply from Asia-Pacific manufacturers contributes to the globally NdFeB market’s diversification.
For instance, in August 2023, a five-year agreement has been signed by Australian Strategic Materials to supply magnet manufacturer USA Rare Earth LLC with neodymium iron boron (NdFeB) alloy from its Korean Metals Plant.
With this agreement, USA Rare Earth will be able to meet around 60% of its metal and alloy requirements for producing permanent magnets for wind turbines and electric vehicles until it starts using resources from its own Round Top reserve in Texas. The first shipment of NdFeB alloy from ASM’s KMP is anticipated in 2024 and will be sent to USA Rare Earth’s Oklahoman Stillwater facility. Therefore, Asia-Pacific is contributing significantly to the growth of the global neodymium iron boron market.

COVID-19 Impact Analysis
The COVID-19 pandemic has increased the risk to the NdFeB magnet supply chain, which has been controlled by a small number of countries. Furthermore, the necessity for developing local sources of NdFeB magnets that may reduce supply risks and uncertainties has increased due to the growing significance of these magnets for clean energy applications like electric vehicles.
Lockdowns, limitations on mobility and the disruptions of transportation networks during the early stages of the pandemic caused supply chain problems for raw materials, manufacturing components and finished goods, including NdFeB magnets. Reductions in production capacity and factory closures in major manufacturing hubs like China intensified the disruptions in the supply chain.
Russia-Ukraine War Impact Analysis
Geopolitical tensions resulted from the conflict between Russia and Ukraine has the potential to lead to instability in the region specifically in the European and its nearby countries and influence the dynamics of global trade. Companies involved in the NdFeB magnet industry may have to witness the difficulties in managing their supply chains, making investment decisions and expanding their market due to geopolitical unpredictability and instability.
Increased supply chain interruptions and geopolitical conflicts may be factors in the NdFeB magnet market’s volatility. Variations in the cost of raw materials, exchange rates and geopolitical risk premiums can affect an effect on pricing dynamics and profitability in the market.
By Product
? Bonded NdFeB Magnet
? Sintered NdFeB Magnet
? Others
By Application
? Automotive
? Renewable Energy
? Industrial Machinery
? Medical Device
? Consumer Electronics
? Others
By End-User
? Automotive
? Energy
? Electrical and Electronics
? Healthcare
? Manufacturing
? Aerospace
? Others
By Region
? North America
o U.S.
o Canada
o Mexico
? Europe
o Germany
o UK
o France
o Italy
o Russia
o Rest of Europe
? South America
o Brazil
o Argentina
o Rest of South America
? Asia-Pacific
o China
o India
o Japan
o Australia
o Rest of Asia-Pacific
? Middle East and Africa
Key Developments
? On July 7, 2023, The first rare earth magnet manufacturing facility in Europe, to be built by Neo Magnequench, a division of Neo Performance Materials Inc., is set to produce specialized rare earth permanent magnets for use in wind turbines, electric vehicles and other clean energy technologies.
? In 2020, for more than 50 years, Electron Energy Corporation has been a go-to source for magnetic solutions for defense. Neodymium iron boron that complies entirely with the John S. McCain National Defense Authorization Act and U.S. Defense Federal Acquisition Regulation Supplement (DFARS 225.7018, 10 U.S.C. 2533c) is now available.
? In 2020, The neodymium iron boron permanent magnet manufacturing equipment that Hitachi Metals America, Ltd. had owned and used in North Carolina has been acquired by USA Rare Earth LLC.

Competitive Landscape
The major global players in the market include Hitachi Metals, Ltd., Shin-Etsu Chemical Co., Ltd., TDK Corporation, Sumitomo Corporation, Neo Performance Materials Inc., Adams Magnetic Products Co., Electron Energy Corporation, Ningbo Yunsheng High-Tech Magnetics Co., Ltd., Magnequench International Inc. and VACUUMSCHMELZE GmbH & Co. KG.
Why Purchase the Report?
? To visualize the global neodymium iron boron market segmentation based on product, application, end-user and region, as well as understands key commercial assets and players.
? Identify commercial opportunities by analyzing trends and co-development.
? Excel data sheet with numerous data points of neodymium iron boron market-level with all segments.
? PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
? Product mapping available as excel consisting of key products of all the major players.
The global neodymium iron boron market report would provide approximately 61 tables, 59 figures and 190 Pages.
Target Audience 2024


    • Manufacturers/ Buyers
    • Industry Investors/Investment Bankers
    • Research Professionals
    • Emerging Companies