Surging Demand for NdFeB Magnets Driven by EVs and Renewables

CSRE

The demand for high-performance neodymium-iron-boron (NdFeB) magnets is expected to surge, driven by key applications such as electric vehicles (EVs), wind turbines, and energy-saving technologies. According to Zhang Anwen, counsellor at the Chinese Society of Rare Earths (CSRE), global consumption of NdFeB magnets is projected to reach 400,000 tons annually by 2030, a significant rise from 10,000 tons in 2023. The EV industry alone accounts for 30% of global magnet demand, followed by inverter air conditioners and industrial robots, both at 16%, and wind turbines at 12%.

A Rise in China’s Production

China’s magnet production has seen remarkable growth in recent years. In 2023, China produced 270,000 tons of rough NdFeB magnetic materials, an 18% increase compared to the previous year, and nearly double the 140,000 tons produced in 2025. The production of sintered NdFeB magnets alone climbed to 255,200 tons in 2023, further solidifying China’s dominance in the global magnet market. The country's output of samarium-cobalt magnets also rose to 3,723 tons in 2023, continuing a growth trend in the production of rare earth magnetic materials.

Key Applications Fueling Demand Growth

The automotive sector, particularly EVs, remains the largest consumer of NdFeB magnets. The demand for NdFeB magnets in China’s automobile industry alone reached 36,200 tons in 2023. The electronic power steering (EPS) system in the global market also contributed significantly, with an estimated 12,000 tons used. Additionally, China's production of industrial robots has driven up magnet consumption, as the country accounted for 72% of global robot production in 2023. The elevator and inverter air conditioner sectors also show robust growth, with magnet consumption in these areas increasing steadily over the years.

China's rare earth smelting and separation output reached 337,300 tons of rare earth oxide (REO) in 2023, a massive leap from 96,900 tons in 2010, driven by both plentiful feedstock supplies and the growing demand for magnets. With these figures in mind, the future of NdFeB magnets looks bright, particularly as the world continues its transition to cleaner energy and advanced technologies.