PUBLISHER: The Business Research Company | PRODUCT CODE: 1790832
PUBLISHER: The Business Research Company | PRODUCT CODE: 1790832
Neodymium is a metallic element belonging to the rare-earth family, displaying a color spectrum from silver-white to yellow. It possesses the ability to conduct heat and electricity, and can be fashioned into sheets. This metal is prominently utilized in the creation of potent permanent magnets.
Neodymium manifests in various forms, with neodymium metal, neodymium nitrate, and neodymium oxide being the primary types. These products find applications in diverse fields, including the manufacturing of permanent magnets, catalysts, laser crystals, neodymium glasses, electric capacitors, and metallurgy. Neodymium, a trivalent rare-earth metal, coexists with cerium and other rare-earth metals. Its applications span across industries such as automotive, electrical and electronics, wind energy, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the metals and minerals sector, disrupting supply chains for automakers, appliance manufacturers, and infrastructure projects. With reduced competition from imports, domestic mills have increased prices, yet capacity limitations hinder their ability to fully meet demand. At the same time, mining companies are facing challenges from retaliatory tariffs on key mineral exports, especially lithium and rare earth elements. In response, industry participants are ramping up investments in scrap metal recycling, seeking tariff exemptions, and forming joint ventures with international producers to ensure a more reliable supply chain.
The neodymium market research report is one of a series of new reports from The Business Research Company that provides neodymium market statistics, including neodymium industry global market size, regional shares, competitors with a neodymium market share, detailed neodymium market segments, market trends and opportunities, and any further data you may need to thrive in the neodymium industry. This neodymium market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The neodymium market size has grown strongly in recent years. It will grow from $3.53 billion in 2024 to $3.71 billion in 2025 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to electronics boom, green energy initiatives, industrialization in emerging markets, consumer preferences, environmental regulations.
The neodymium market size is expected to see strong growth in the next few years. It will grow to $4.89 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to electric vehicle (EV) revolution, renewable energy expansion, 5g technology implementation, strategic resource security, circular economy initiatives, R&D and innovation. Major trends in the forecast period include increased demand in electric vehicles (EVs), renewable energy applications, supply chain concerns and price volatility, technological advancements, recycling initiatives, strategic alliances and market consolidation, regulatory changes.
The forecast of 7.1% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through restricted access to rare-earth magnets from China and Vietnam, disrupting production of electric vehicle motors and wind turbine generators. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The rising demand for electric vehicles globally is projected to significantly drive the growth of the neodymium market in the coming years. Electric vehicles (EVs) are either fully powered by electricity or partially powered, operating on electric engines instead of traditional combustion engines. Neodymium is utilized as the optimal magnet in electric vehicle motors, aiding in the conversion of electricity into motion, thus increasing demand for neodymium. For instance, in 2023, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that electric car sales surpassed 10 million in 2022, representing 14% of all new car sales, an increase from about 9% in 2021. Three markets dominated global sales. Consequently, the rising demand for electric vehicles is fueling growth in the neodymium market.
The increasing demand for electronic devices, including smartphones, laptops, and tablets, is poised to drive the growth of the neodymium market. Electronic devices encompass gadgets that enable the use or access of remote computing, electronic communication, or location information services. Neodymium magnets find widespread application in the speakers of electronic devices, particularly smartphones, laptops, and tablets. Engineered to be compact and lightweight while delivering high performance, these magnets contribute to generating high-fidelity sound within small enclosures. With the global smartphone user base estimated to reach 6.6 billion in 2022, experiencing a 4.9% annual increase from 2021, and the projection of 294.15 million smartphone users in the United States in January 2022, representing nearly 85% of American adults, the growing demand for electronic devices is a significant driver of neodymium market growth.
Technological advancements emerge as a prominent trend gaining momentum in the neodymium market. Major companies in the industry are actively engaged in developing innovative technological solutions to enhance their market positions. Ucore Rare Metals Inc., a Canada-based provider of extraction and separation technologies for rare and critical metal resources, introduced the 'RapidSX' rare earth elements separation technology in April 2022. This technology, designed for the separation of both light and heavy rare earth elements (REEs), boasts faster kinetics in conventional solvent extraction processes, enabling the production of high-quality rare earth oxides at processing capacities ranging from 1,000 to 10,000+ tonnes per annum.
Strategic collaborations with major manufacturing companies represent a key focus for major players in the neodymium market to strengthen their positions. These collaborations empower companies to form alliances with firms possessing the requisite expertise to translate conceptual ideas into tangible realities. In July 2022, General Electric (GE) Renewable Energy, a US-based renewable energy manufacturing and services company, entered into a non-binding memorandum of understanding (MoU) with Arafura Resources Limited, an Australia-based mineral exploration company specializing in rare earth elements. The collaboration aims to establish a sustainable supply chain for neodymium and praseodymium (NdPr), crucial components for the energy transition.
In April 2023, Neo Performance Materials Inc., a Canada-based chemical industry company, acquired a majority stake in SG Technologies Group Limited, a UK-based manufacturer of rare-earth-based high-performance magnetic components and assemblies. This acquisition positions Neo to commence sintered rare earth magnet production in Estonia by 2025, catering to markets such as electric vehicles, electronics, energy-saving specialized motor applications, and other emerging technology applications, thereby expanding its rare earth processing and magnet manufacturing footprint in Europe.
Major companies operating in the neodymium market include Arafura Rare Earths Limited, China Rare Earth Holdings Limited, Lynas Rare Earths Ltd., Metall Rare Earth Limited, HEFA Rare Earth Canada Co. Ltd., Alkane Resources Ltd., Neo Performance Materials Inc., Australian Strategic Material Ltd., MP Materials Corp., Peak Rare Earths, Rainbow Rare Earths Limited, Texas Mineral Resources Corp., Greenland Minerals Ltd., GanZhouQianDong Rare Earths Group Co. Ltd., Avalon Advanced Materials Inc., Rare Element Resources Ltd., Northern Minerals Limited, Medallion Resources Ltd., Ucore Rare Metals Inc., Rare Earth Salts Separations & Refining LLC, Neo Material Technologies, Shenghe Resources Holding Co. Ltd., China Northern Rare Earth Group High-Tech Co. Ltd., JXTC Rare Earth Co. Ltd., Baotou Steel Rare-Earth Co. Ltd., Chinalco Rare Earth Co. Ltd., Tongling Nonferrous Metals Group Co. Ltd.
Asia-Pacific was the largest region in the neodymium market in 2024. The regions covered in the neodymium market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the neodymium market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.