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Neodymium Market Growth Fueled by Demand in Magnetic Resonance Imaging

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.

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. The neodymium industry is experiencing significant growth, primarily fueled by the rising demand for permanent magnets across multiple industries.

Neodymium magnets, also known as NdFeB magnets, are the strongest rare-earth magnets available and play a vital role in a wide range of high-performance applications. Their exceptional magnetic strength and compact size make them indispensable in electric motors, wind turbines, and consumer electronics. With the global shift toward energy-efficient and compact technologies, the reliance on neodymium-based components has risen substantially.

Owing to their superior strength and efficiency, neodymium magnets are crucial in modern electric motors, wind turbines, and electronics. In March 2024, LG Innotek announced an expansion of its neodymium magnet production to meet the increasing demand from global tech firms, highlighting the material’s importance in emerging technologies. The trend toward miniaturization and energy efficiency continues to reinforce the role of neodymium magnets in global manufacturing.

The rapid expansion of electric vehicle (EV) production is another key growth driver for the neodymium market. In 2024, Tesla reported producing over 2.1 million EVs, while BYD surpassed 3 million units. Both companies rely heavily on neodymium-based permanent magnets in their electric motors. Additionally, General Motors revealed its plans to source rare earth magnets domestically for its Ultium EV platform starting in 2025, underscoring the strategic importance of neodymium in the automotive sector. The global shift toward clean mobility is expected to significantly accelerate demand.

The wind energy sector has also emerged as a major consumer of neodymium. In 2024, Siemens Gamesa introduced its latest offshore wind turbine model with a 15 MW capacity, powered by direct-drive technology that depends heavily on neodymium magnets. Countries such as the UK, China, and India are intensifying their renewable energy initiatives, further increasing neodymium consumption for turbine production.

Consumer electronics represent another strong growth segment. Global smartphone shipments rebounded in 2024, reaching nearly 1.3 billion units, boosted by the adoption of AI-driven devices and 5G expansion. Devices such as smartphones, tablets, and laptops integrate compact neodymium magnets in speakers, vibration units, and cameras. Apple continues to incorporate these magnets into its MagSafe accessories and internal components, further fueling market demand.

Defense and aerospace applications also add significant momentum to neodymium adoption. In 2024, the U.S. Department of Defense signed a rare earth supply agreement with MP Materials to secure domestic sources of neodymium magnets for advanced military applications. These magnets are vital in radar systems, drones, and precision-guided weapons. As defense modernization and geopolitical challenges intensify, neodymium’s role in strategic applications is becoming increasingly critical.

Order a free sample PDF of the Neodymium Market Intelligence Study, published by Grand View Research.

 

Key Market Trends & Insights

  • Asia Pacific remains the fastest-growing market, led by EV, renewable energy, and electronics industries.
  • China is expected to record the highest CAGR from 2025 to 2030.
  • The magnets segment accounted for the largest revenue share in 2024.
  • The automotive industry contributed over 33.0% of the market share in 2024.

Market Size & Forecast

  • 2024 Market Size: USD 5.28 Billion
  • 2030 Projected Market Size: USD 7.30 Billion
  • CAGR (2025–2030): 6.7%
  • Largest Market (2024): Asia Pacific

 

Key Neodymium Company Insights

  • Arafura Rare Earths (Australia) specializes in high-purity NdPr oxide production from its Nolans Project, a material crucial for NdFeB magnets. The company has secured long-term offtake agreements with global leaders including Hyundai, Kia, Siemens Gamesa, and Traxys Europe SA, aiming to supply up to 2,020 tonnes of NdPr oxide annually.
  • China Rare Earth Holdings Limited (CREH), headquartered in Hong Kong, is a leading player in the rare earth and refractory materials market. Its offerings include neodymium oxide and NdFeB magnets, widely used in EVs, wind turbines, and consumer electronics. CREH’s reputation for high-purity products makes it a strong competitor in meeting the growing global demand.

Key Neodymium Companies

  • 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.

Explore Horizon Databook – The world’s most expansive market intelligence platform developed by Grand View Research.

 

Conclusion

The global neodymium market is set for sustained growth, driven by surging demand in electric vehicles, renewable energy, consumer electronics, and defense applications. With Asia Pacific leading the expansion and China projected to register the highest CAGR, the industry will continue to play a pivotal role in advancing energy-efficient and high-performance technologies. Strategic partnerships, domestic sourcing initiatives, and scaling up production capacity are expected to further reinforce neodymium’s critical role in global industrial transformation.

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