The global neodymium market size was estimated at USD 5.28 billion in 2024 and is projected to reach USD 7.30 billion by 2030, growing at a CAGR of 6.7% from 2025 to 2030. This growth is primarily fueled by the increasing demand for permanent magnets across diverse industries.

Neodymium magnets, commonly referred to as NdFeB magnets, are the strongest type of rare-earth magnets and play a vital role in high-performance applications. Their exceptional magnetic strength and compact form factor make them indispensable in electric motors, wind turbines, and consumer electronics. As the global transition toward energy-efficient and miniaturized technologies continues, the need for neodymium-based components has witnessed significant growth.

Due to their strength and space-saving properties, neodymium magnets are critical in applications such as electric motors, renewable energy systems, and high-end electronics. In March 2024, LG Innotek announced a substantial scale-up in neodymium magnet production to meet surging demand from global tech companies, emphasizing the growing importance of this material in modern technologies. The movement toward smaller, more energy-efficient devices is further accelerating the adoption of neodymium magnets across manufacturing sectors.

One of the primary drivers of neodymium market expansion is the booming electric vehicle (EV) industry. In 2024, Tesla reported producing over 2.1 million EVs, while BYD exceeded 3 million units, both utilizing neodymium-based permanent magnets in their electric motor systems. Furthermore, General Motors announced plans to locally source rare earth magnets for its Ultium EV platform beginning in 2025, highlighting neodymium's critical role in the evolving automotive supply chain. The global shift toward clean mobility continues to be a powerful force behind the rising demand for neodymium.

Key Market Trends & Insights

• Asia Pacific is witnessing strong growth, led by the expansion of industries such as EVs, renewable energy, and consumer electronics.

• China is projected to register the highest CAGR from 2025 to 2030.

• By application, the magnets segment accounted for the largest revenue share in 2024.

• By end use, the automotive sector represented over 33.0% of the market in 2024.

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Market Size & Forecast

• 2024 Market Size: USD 5.28 Billion

• 2030 Projected Market Size: USD 7.30 Billion

• CAGR (2025–2030): 6.7%

• Asia Pacific: Largest regional market in 2024

Key Neodymium Company Insights

Arafura Rare Earths, based in Perth, Western Australia, focuses on high-purity NdPr oxide production derived from the Nolans Project. This material is essential for NdFeB magnet manufacturing, supporting industries such as EVs, wind power, robotics, and electronics. Arafura has signed binding offtake agreements with major companies like Hyundai, Kia, Siemens Gamesa, and Traxys Europe SA to supply up to 2,020 tonnes of NdPr oxide annually.

China Rare Earth Holdings Limited (CREH), headquartered in Hong Kong, is an investment holding company engaged in the production and sale of rare earth and refractory products. It supplies high-purity neodymium oxide and NdFeB magnets, catering to a wide range of applications including electric vehicles, wind turbines, and consumer electronics. CREH’s products are recognized globally for their high standards of quality and consistency.

Key Neodymium Companies

The leading players shaping the global neodymium market include:

• Arafura Rare Earths
• China Rare Earth Holdings Limited
• Lynas Rare Earths Ltd
• METALL RARE EARTH LIMITED
• MP MATERIALS
• Peak Rare Earths
• Rainbow Rare Earths Limited
• Texas Mineral Resources Corp.
• HEFA Rare Earth
• Greenland Minerals Ltd.

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Conclusion

The global neodymium market is poised for steady growth, fueled by its indispensable role in cutting-edge technologies and sustainable industrial transformation. The surge in electric vehicle production, advancements in renewable energy, and the demand for compact electronics continue to drive the adoption of neodymium magnets. With Asia Pacific leading regional growth and key players investing in capacity expansion, the market is well-positioned to benefit from the worldwide push for energy efficiency and technological innovation.