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

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.

End-use Insights

The automotive segment held the largest revenue share of over 30.0% in 2021. Automotive is a vital end-use industry for the market owing to the extensive use of NdFeB magnets in the automobile sector. They are used as the static part of electric motors, which are gaining high demand owing to technological advancements.

For instance, electric motors are used in windows, windscreen wipers, and door-closing systems of vehicles. The performance of these magnets is better in the case of smaller and lighter motors. As the auto industry is inclining toward reducing weight, the application of neo-based magnets is expected to rise further.

The electrical and electronics segment is anticipated to register a growth rate of 14.9%, in terms of revenue, during the forecast period. Neodymium magnets are utilized in a majority of electronic devices owing to their high magnetic strength and ability to perform at a wide temperature range. For instance, according to Arnold Magnetic Technologies, approximately 0.2 grams of neodymium magnets are utilized per earbud.

Neodymium is also used in fiber optic technologies that power telephones and internet communication. In mobile phones, it finds its application in speakers, where mainly N48 and N52 magnetic grades are used. These are the strongest performance grades available and can endure high temperatures during the manufacturing process. Hence, it is finding increasing applications in the electrical & electronics segment, and with ongoing innovation, this trend is anticipated to continue over the forecast period.

Application Insights

Magnets held the largest revenue share of over 55.0% in 2021. NdFeB is a very strong permanent magnet, which finds application in producing small-size electronics such as loudspeakers, smartphones, and computer hard drives. Also, they are extensively preferred in EVs on account of being less costly and lightweight compared to samarium cobalt (SmCo) magnets.

Catalysts held the second-largest revenue share in 2021. Neodymium-based catalysts are used to produce butadiene elastomers and polymerization reactions owing to their very high catalytic activities. The butadiene elastomer manufactured using a neodymium catalyst consists of high CIS content, which helps to produce high-impact Butadiene Rubber suitable for tire manufacturers and other applications.

Further, growth in the tire market amidst rising demand from both OEMs and automotive aftermarkets is anticipated to prove fruitful for catalysts demand in the tire industry. For instance, in June 2022, Bridgestone Americas opened a new Advanced Tire Production Center in Akron, Ohio, U.S. The company invested a sum of USD 21 million in this new production center, which will produce Firestone Firehawk race tires for the NTT INDYCAR SERIES.

Regional Insights

Asia Pacific held the largest revenue share of over 90.0% in 2021. China and Japan are significant markets in the Asia Pacific, with both countries being among the largest producers of permanent magnets in the world. However, developing economies such as India and Southeast countries such as Indonesia and Thailand has huge potential.

This growth potential of Asia Pacific is attributed to the high economic growth, rising disposable income, and subsequent increase in the production of passenger vehicles, electronics, and wind power generators in developing countries such as China, India, and Japan. Moreover, the shift of manufacturing plants from other locations to Asian countries, rising investments in the EV industry, and growth in the production of electric motors are propelling the growth of the market in the region.

North America is projected to register a growth rate of 13.0%, in terms of revenue, from 2022 to 2030. The growth of the oil & gas industry in the region is anticipated to propel the demand for catalysts over the forecast period. For instance, in June 2022, the U.S. President asked the oil refiners in the country to produce more diesel and gasoline. Refineries convert oil into refined products including gasoline, diesel, and jet fuel. By the end of June 2022, the utilization rate for U.S. refineries reached around 94%.

The rising investments in the onshore industry are compelling wind turbine manufacturers to innovate and introduce new products. For instance, in May 2022, GE launched the 3MW Sierra onshore wind turbine platform, exclusively for North America. The turbines will be manufactured in the Pensacola, Florida facility and most of its components will be produced in North America itself. Such developments in the wind turbine industry are anticipated to augment market growth during the forecast period.

Key Companies & Market Share Insights

The global market is largely dominated by China as various small-, medium-, and large-sized companies are located either in China or in its close vicinity owing to the presence of large-scale rare earth metal deposits in the country. Thus, China controls the product’s pricing. Being its largest supplier, it has restrictive trade policies in place, for its global supply.

Neodymium manufacturers are vertically integrating their companies to tap the potential growth opportunities to further gain a competitive edge in the industry. For instance, in August 2022, NEO PERFORMANCE MATERIALS announced the acquisition of a rare earth mining project owned by Hudson Resources in Greenland. This project forms a key element of the magnet-to-mine vertical integration strategy of NEO PERFORMANCE MATERIALS. This acquisition is anticipated to help the company supply rare earth elements to its permanent magnet manufacturing plant in Estonia. Some prominent players in the global neodymium market include:

• ARAFURA RESOURCES

• 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.

Neodymium Market Report Scope

Global Neodymium Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global neodymium market report on the basis of application, end-user, and region:

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Magnets

  • Catalysts

  • Ceramics & Glass

  • Others

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Electrical & Electronics

  • Wind Energy

  • Others

• Regional Outlook (Volume, Tons,; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa