Neodymium Market Size, Share & Trends Analysis Report By Application (Magnets, Catalysts), By End-use (Automotive, Electrical & Electronics), By Region, And Segment Forecasts, 2022 – 2030

The global neodymium market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. The market is anticipated to be driven by the increasing usage of permanent magnets in the automotive industry. Neodymium-iron-boron (NdFeB) is of vital significance in electric motors, which are further used in electric vehicles (EVs) and wind energy-related applications. The growing focus on alternative energy has augmented the demand for wind energy and EVs, which, in turn, is boosting the market growth.

Report Overview

The global neodymium market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. The market is anticipated to be driven by the increasing usage of permanent magnets in the automotive industry. Neodymium-iron-boron (NdFeB) is of vital significance in electric motors, which are further used in electric vehicles (EVs) and wind energy-related applications. The growing focus on alternative energy has augmented the demand for wind energy and EVs, which, in turn, is boosting the market growth.

The U.S. is a vital market for rare earth. The need for NdFeB magnets is expected to rapidly grow on account of rising demand from high-end applications including robotics, wearable devices, EVs, and wind power. The increasing demand for magnets in various end-use industries has pushed key manufacturers to set up new plants.

For instance, in April 2022, MP MATERIALS announced that it is going to invest USD 700 million to set up a new production facility for rare earth metals, magnets, and alloys in Fort Worth, Texas, U.S. by 2025. This facility is likely to have a production capacity of 1,000 tons per year of NdFeB magnets. These magnets will be supplied to General Motors to produce 500,000 EV traction motors.

One of the prominent applications for the market is Hard Disk Drives (HDD), where neodymium magnets are used for driving the spindle motor. Even though the quantity of neodymium used in HDD is low (0.2% of total metal content), the large-scale production of HDD is anticipated to benefit product demand. Rising consumption of HDD from the electronics industry is likely to augment market growth over the projected timeline.
The historic period witnessed a few geo-political and trade conflicts that impacted the market across the globe. For instance, the U.S.-China trade war, uncertainties associated with Brexit, mining restrictions, and growing economic protectionism adversely impacted the supply dynamics and caused price hikes in the market.