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Neodymium Market Size, Share & Industry Analysis, By Application (Magnets, Catalysts, Ceramics & Glass, and Others), and Regional Forecast, 2024-2032

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI107678



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The global neodymium market size was valued at USD 5.52 billion in 2023 and is projected to grow from USD 5.78 billion in 2024 to USD 8.77 billion by 2032, exhibiting a CAGR of 5.3% during the forecast period.

Neodymium (Nd) is one of the rarest metals, with atomic number 60, and appears as a silvery metal. Processes, such as sintered and bonded, are utilized for the mining of the element. Moreover, this metal offers excellent magnetic properties and is resistant to extreme temperatures. As a result, it is majorly used as a permanent magnet. Hence, the growing demand for permanent magnets of neodymium ferrous boron (NdFeB) from the automotive and electronics industries will boost the market. Furthermore, growing technological advancements in electric motors and the rising adoption of NdFeB across the healthcare industry to reduce swelling and assist rapid healing will further increase market growth during the forecast period.

The market was severely impacted during the COVID-19 period. Many countries across the globe imposed restrictions on trade activities, transportation, and the distribution of raw materials and finished products. This disrupted the value chain of the market. As a result of this issue, several companies’ mining activities were hampered, and the demand decreased drastically. However, the supply chain returned to normal after restrictions were eased, allowing industry players to pursue opportunities. Hence, this will help mitigate the impact of coronavirus on annual performance.

Neodymium Market Trends

Rising Demand from EV Industry due to Rising Environmental Issues Creates New Market Opportunities

The growth in the production of electric vehicles due to rising environmental issues would create lucrative opportunities for NdFeB. Neodymium is considered an optimum magnet for use in EV motors. In more than 90% EV cases, brushless DC (BLDC) motors are utilized, which are manufactured using NdFeB. Hence, the growing demand for DC motors would propel product adoption. The consumption of Nd in electric vehicles is mainly rising in powerful magnets, which are further utilized in the anti-lock brake system sensor, distributor’s sensor, CAM sensor, electric generator, alternator, ignition coil, power steering motor, pump motor, and starter. Hence, growth in electric vehicles worldwide would flourish in the market during the analysis period.

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Neodymium Market Growth Factors

Rising Demand for NdFeB across Various Industries such as Automotive and Electronics to Drive the Market Growth

The growing demand for NdFeB magnets from end-use industries such as automotive and electronics fuels the product consumption. The magnets made from Nd are compact, lightweight, and highest performing, with a greater magnetic field when compared with traditional-based magnets. Their demand rapidly increased from the automobile, elevator, voice coil, and energy-saving motors. In addition, NdFeB magnets are preferred in applications such as electric vehicles, advanced audio-visual equipment, and wind turbines. The rising demand for stronger magnets that require less mass and provide better results compared with the iron-based electromagnets is augmenting its demand. These factors are set to fuel the consumption of NdFeB, propelling industry expansion over the forecast period.

Expansion of Ceramic & Glass Products owing to the Rise in the Construction Industry to Propel the Product Demand 

The dramatic rise in population has created a massive opportunity for the construction industry. Moreover, people are shifting to metro cities to earn and grow professionally. This has created the need for residential and non-residential places such as buildings, shopping malls, airports, co-living apartments, and others. Therefore, contractors, engineers, and architects are coming up with the latest structural designs, advanced windows, Internet of Things (IoT) inbuilt ceramics basins, and toiletries. Neodymium is the chemical material that is used as a colorant of glass. The consumption of the product enables the different shades of glass and ceramics ranging from red wine to violet. Such product color-adding properties are expected to boost demand from the construction industry.


Fluctuating Product Prices to Hamper Market Growth

Fluctuation in the prices of neodymium restricted the market growth during the study period. The factors such as supply chain disruption, expensive mining activities, government environmental regulations, and higher demand from the automotive and electronics industries influence product pricing. In addition, China plays a monopoly in rare earth production. Therefore, the country has increased export prices and restricted the product supply. Also, the government of China has implemented strategic material controls on Nd and other rare earth elements which is expected to cause significant price fluctuations. These factors may restrain the neodymium market growth during the forecast period.

Neodymium Market Segmentation Analysis

By Application Analysis

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Magnets Segment to be Dominant Due to Rising Demand from Electronics Industry

Based on application, the market is segmented into magnets, catalysts, ceramics & glass, and others. The magnets segment accounted for a dominating neodymium market share and is anticipated to continue its dominance during the forecast period. The consumption of rare earth element-based magnets can be mainly seen in traditional cars, electric cars, industrial products, consumer electronics, air conditioners, and elevators. Additionally, the growing expansion of residential and commercial buildings is surging the demand for electronics such as televisions, computers, speakers, generators, mobile phones, and motors. Hence, rapid growth in the electronics industry will boost the product demand for magnet production.

The growing utilization of catalysts in the production of tires is enhancing product adoption. The product used in this segment is mainly associated with its remarkable characteristics, such as high CIS content, higher resilience, improved hysteresis, and better abrasion resistance. In the ceramic & glass application, Nd (III) oxide is used for decolorizing ferrous glass, glass coloring, and as an additive for solar control glass. This neodymium glass is further used to make lasers and laser pointers and is utilized in cosmetic surgery, eye surgery, and the treatment of cancers. The other segment includes battery and battery alloys, metallurgy, and polishing. The growing adoption of batteries in the automotive and electronics industries and increasing technological advancements will propel the other segments.


Asia Pacific Neodymium Market Size, 2023 (USD Billion)

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The market size in Asia Pacific stood at USD 4.66 billion in 2023. Increasing manufacturing of electric vehicles and electronics products, such as television and mobile phones, is expected to fuel the demand for neodymium magnets. This will drive the product adoption in Asia Pacific.

Moreover, the global manufacturing and supply of rare earth elements including neodymium is dominated by China. The country accounted for the largest revenue share in 2023. According to the ChinaPower association, in 2019, China manufactured roughly 85% of the global rare earth oxides and around 90% of rare earth metals, permanent magnets, and alloys. Thus, supportive government regulations, low-cost labor, and wide mining facilities are factors attributed to China experiencing the largest metal production.

In North America, the rising product consumption is attributed to the growing demand for permanent magnets. As a result, it allows miniaturization of electronic products such as computer hard drives, mobile phones, loudspeakers, and electronic automobile components. Moreover, the rising demand for wind turbines has positively impacted the market growth. According to Goudsmit U.K., the enduring development in both the performance and design of wind turbines has led to the substantial development of NdFeB.

Growing product demand for wind turbines to improve reliability, reduce costs, and lower the need for expensive maintenance is augmenting the market growth in Europe. Moreover, the increasing commercialization of electric vehicles and growing infrastructure development further propel product adoption in this region.

Furthermore, the growth of the automotive industry in Europe will fuel the product demand. The major applications include an electronic control unit, automotive safety and information system, energy transmission system, and vehicle multimedia system. Additionally, the increasing demand for vehicles of less weight and minimum carbon emissions will positively impact the market in Germany.

The product usage in Latin America and the Middle East & Africa is expected to grow moderately due to the rising demand for consumer electronics.

List of Key Companies in Neodymium Market

Companies Undertake Increasing Mining Activities as a Strategic Initiative

Key players operating in the market are mainly involved in mining rare earth metals to cater to the emerging market demand. For instance, Lynas Corporation is a metal and mining company based in Australia. Rare earth oxides are mined and initially processed at the company’s facility in Mt. Weld, Australia, and its refining and separation facility is located in Gebeng, Malaysia. Additionally, as part of the “Lynas 2025” growth strategy plan, the company is expanding its industrial footprint with a rare earth processing facility in Kalgoorlie, Western Australia.

On the other hand, Rainbow Rare Earths Limited mines the dysprosium, neodymium, praseodymium, and terbium deposits. The company mainly engages in the earth minerals project located in South Africa and Burundi. Its project names are Phalaborwa Project and Gakara Project.



  • February 2023: MP Materials Corp. and Sumitomo Corporation are undergoing an agreement. The agreement was aimed at strengthening and diversifying the supply of rare earth in Japan. As per the agreement, Sumitomo Corporation works as the distributor of MP Materials.

  • December 2022: Australian Strategic Materials Ltd entered an agreement with the Vietnam Rare Earth Company (VTRE) and Chungcheongbuk Province in Korea. The agreement would help the company to increase market share across the globe.

  • September 2022: KSM Metals Co., Ltd (a subsidiary of Australian Strategic Materials (ASM)), entered an agreement (Sales Agreement) with Korean company NS World Co., Ltd for the sale of neodymium praseodymium metal produced at its Korean Metals Plant.

  • February 2022: IREL (India) Limited renewed its agreement with M/s. Toyota Tsusho Corporation, Japan and M/s. Toyotsu Rare Earths (India) Pvt. Ltd. Such a development strategy adopted by the company helps boost the Rare Earths refining and further downstream activities within the country.

  • December 2021: MP Materials Corp. and General Motors entered an agreement to supply rare earth materials. The supply chain agreement would help the company enhance its global presence.


An Infographic Representation of Neodymium Market

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, technologies, and key application areas. Besides this, the research report offers insights into the neodymium market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 5.3% from 2024 to 2032


Value (USD Billion); Volume (Kiloton)


By Application

  • Magnets

  • Catalysts

  • Ceramics & Glass

  • Others

By Geography

  • North America (By Application, By Country)

    • U.S.

    • Canada

  • Europe (By Application, By Country)

    • Germany

    • France

    • U.K.

    • Rest of Europe

  • Asia Pacific (By Application, By Country)

    • China

    • Japan

    • India

    • Vietnam

    • Rest of Asia Pacific

  • Latin America (By Application, By Country)

    • Brazil

    • Rest of Latin America

  • Middle East & Africa (By Application, By Country)

    • Saudi Arabia

    • Rest of the Middle East & Africa

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 5.52 billion in 2023 and is projected to reach USD 8.77 billion by 2032.

In 2023, the market value stood at USD 5.52 billion.

Growing at a CAGR of 5.3%, the market will exhibit rapid growth over the forecast period (2024-2032).

The magnet segment is leading application in the market.

The rising demand for NdFeB across various industries such as automotive and electronics is expected to drive the market growth.

China held the highest share in the market in 2023.

Arafura Resources Limited, Lynas Rare Earths Ltd, HEFA Rare Earth Canada Co. Ltd., MP MATERIALS CORP., and Peak Rare Earths are the leading players in the market.

The growing demand from the electrical & electronics and automotive industries will fuel the product adoption over the forecast period.

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