Neodymium Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 15.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Neodymium Market Analysis
The neodymium market is expected to register a CAGR of 15% during the forecast period.
The market was hampered by the COVID-19 pandemic as lockdowns, social distances, and trade sanctions triggered massive disruptions to global supply chain networks. The automotive and transportation industries witnessed a decline due to the halt in activities worldwide. However, the condition recovered in 2021, which is now expected to benefit the market during the forecast period.
- Over the short term, rising demand for neodymium magnets from the wind energy and electric vehicle industries is expected to drive the growth of the market.
- On the flip side, the availability of less expensive substitutes is a restraint on the growth of the market.
- Rising government assistance for electric vehicles across the globe acts as an opportunity for the growth of the market in the near future.
- Asia Pacific dominated the market globally, with the largest consumption from transportation industry activities in countries such as India, China, and others.
Neodymium Market Trends
Automotive Segment to Dominate the Market
- The automotive industry is the major end-user segment for the market owing to the extensive usage of NdFeB magnets in automobiles. They are used as the static part of electric motors, which are in high demand owing to technological advancements.
- Due to its strong magnetic properties, neodymium is one of the rare earth elements that electronic automobile manufacturers use in magnetic motors. The demand for neodymium is expected to increase over the forecast period since it is stronger, lighter, and more effective as compared to copper coils.
- The global demand for rare earth elements for permanent magnets to be used in industrial applications is projected to increase to 7,000 metric tons in 2025. By 2035, the production of rare earths is expected to more than double and add about 300,000 metric tons, as compared to the volume produced in 2021.
- The alloy of neodymium, iron, and boron is used to make the permanent magnet known as NdFeB. In 2022, the global demand for neodymium-iron-boron (NdfeB) permanent magnets reached 16,100 tons.
- Neodymium is also used in tire manufacturing as neodymium-based performance butadiene rubber. According to Top Tire Review, in 2021, the tire industry was valued at USD 130.54 billion. The top three companies, Michelin, Bridgestone, and Goodyear, accounted for approximately 50% of the overall tire industry revenue.
- Further, growth in the tire market amidst rising demand from both OEMs and automotive aftermarkets is anticipated to increase neodymium catalyst 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.
- Industries such as automotive, electronics, and healthcare have witnessed innovation and development, driving the demand for neodymium magnets. In 2021, approximately 85% of automakers used neodymium-incorporated permanent magnet motors, and the automotive demand for rare earths rose by 25% in 2022.
- All the factors, in turn, are projected to have a significant impact on market growth during the forecast period.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region holds the largest share of the market due to China and Japan being the two significant markets in the region, with both countries being among the largest producers of permanent magnets in the world.
Neodymium is the strongest rare earth metal, and so it is the most widely used in permanent magnets. Neodymium-iron-boron magnets are preferred for most applications because of their superior performance in the smallest volume.
In 2021, China had the biggest mine production of rare earths in the Asia-Pacific region. The country produced an estimated 168 thousand metric tons of rare-earth oxide (REO) that year.
Rare earth elements contribute a total value of nearly USD 200 billion to the Indian economy. India has the world's fifth-largest reserves of rare earth elements, roughly twice as much as Australia.
Neodymium is used in wind turbines for the production of wind energy. The Asia-Pacific region holds the largest number of wind energy construction projects that were initiated in 2022. For instance, the Pinnapuram Integrated Renewable Energy Project, started in Andhra Pradesh, involves the construction of a 5,230 MW integrated hybrid renewable energy project.
In 2022, MacIntyre Wind Farm, a 1,026 MW wind farm, was to be constructed in Queensland, Australia, with an investment of USD 1,414 million.
India holds the fourth-largest wind power installed capacity globally. These projects are mostly spread in the northern, southern, and western parts of the country. The government achieved the target of 60 GW of onshore wind and 5 GW of offshore wind in 2022.
In February 2021, South Korea announced an investment of USD 43.2 billion for the construction of offshore wind farms by 2030. This initiative would help the country become carbon-neutral by 2050.
All the aforementioned factors are expected to significantly impact the demand for the market studied in the region during the forecast period.
Neodymium Industry Overview
The neodymium market is fragmented in nature. Some of the key players include Arafura Resources, Lynas Rare Earths Ltd, MP MATERIALS, Peak Rare Earths, Australian Strategic Materials Ltd, among others.
Neodymium Market Leaders
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Arafura Resources
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Lynas Rare Earths Ltd
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MP MATERIALS
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Peak Rare Earths
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Australian Strategic Materials Ltd
*Disclaimer: Major Players sorted in no particular order
Neodymium Market News
- February 2023: MP Materials and Sumitomo Corporation entered into an agreement to diversify and strengthen rare earth supplies in Japan. Under the agreement, Sumitomo Corporation becomes the exclusive distributor of neodymium and praseodymium (NdPr) oxide produced by MP Materials.
- November 2022: Arafura Resources Limited signed a supply deal with South Korea's Hyundai Motor Co. and its unit Kia Corp. to supply up to 1,500 metric tons of neodymium-praseodymium (NdPr) oxide per year. Under the agreement, the company will supply contract quantities of NdPr oxide over seven years.
- August 2022: Australia's Lynas Rare Earths Ltd. expanded capacity at its Western Australia-based Mt Weld mine, which has deposits of neodymium (Nd) and praseodymium (Pr). The company anticipated expansion work to begin by early 2023, with full operation planned for 2024.
- July 2022: Arafura Resources Limited and GE Renewable Energy signed a non-binding memorandum of understanding (MoU) to jointly cooperate in the establishment of a sustainable supply chain for neodymium and praseodymium (NdPr), which is central to the energy transition.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Rising Demand for Neodymium Magnets from Wind Energy and Electric Vehicle Industries
- 4.1.2 Other Drivers
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4.2 Restraints
- 4.2.1 Availability of Less-Expensive Substitutes
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
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5.1 Application
- 5.1.1 Magnets
- 5.1.2 Catalysts
- 5.1.3 Glass and Ceramics
- 5.1.4 Other Applications
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5.2 End-User Industry
- 5.2.1 Automotive
- 5.2.2 Electrical and Electronics
- 5.2.3 Wind Energy
- 5.2.4 Other End-user Industries
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East & Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Arafura Resources
- 6.4.2 China Rare Earth Holdings Limited
- 6.4.3 Lynas Rare Earths Ltd
- 6.4.4 METALL RARE EARTH LIMITED
- 6.4.5 MP MATERIALS
- 6.4.6 Peak Rare Earths
- 6.4.7 Rainbow Rare Earths Limited
- 6.4.8 HEFA Rare Earth Canada Co. Ltd
- 6.4.9 Australian Strategic Materials Ltd
- 6.4.10 NEO
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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7.1 Rising Government Assistance for Electric Vehicles across the Globe
- 7.1.1 Other Opportunities
Neodymium Industry Segmentation
Neodymium is a silver-white to yellow metallic element of the rare-earth group that is used especially in magnets and lasers. Neodymium magnets are composed of neodymium, boron, iron, and a few transition metals. These magnets are referred to as NdFeB or Neo magnets. The neodymium market is segmented by application, end-user industry, and geography (Asia-Pacific, North America, Europe, South America, the Middle East, and Africa). By application, the market is segmented into magnets, catalysts, glass and ceramics, and other applications. By end-user industry, the market is segmented into automotive, electrical and electronics, wind energy, and other end-user industries. The report also covers the market size and forecasts for the neodymium market in 15 countries across major regions. For each segment, market sizing and forecasts have been done based on revenue (USD million).
| Application | Magnets | |
| Catalysts | ||
| Glass and Ceramics | ||
| Other Applications | ||
| End-User Industry | Automotive | |
| Electrical and Electronics | ||
| Wind Energy | ||
| Other End-user Industries | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle East & Africa |
Frequently Asked Questions
What is the current Neodymium Market size?
The Neodymium Market is projected to register a CAGR of 15% during the forecast period (2024-2029)
Who are the key players in Neodymium Market?
Arafura Resources, Lynas Rare Earths Ltd , MP MATERIALS, Peak Rare Earths and Australian Strategic Materials Ltd are the major companies operating in the Neodymium Market.
Which is the fastest growing region in Neodymium Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Neodymium Market?
In 2024, the Asia-Pacific accounts for the largest market share in Neodymium Market.
What years does this Neodymium Market cover?
The report covers the Neodymium Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Neodymium Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Neodymium Industry Report
Statistics for the 2024 Neodymium market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Neodymium analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
