Soaring Demand for NdFeB Magnets Fueled by EVs and Renewable Energy

Rising Demand for NdFeB Magnets Fueled by EVs and Renewables

The demand for high-performance neodymium-iron-boron (NdFeB) magnets is projected to surge, reaching 400,000 tons annually by 2030, a significant increase from 10,000 tons in 2023. According to Zhang Anwen, counsellor at the Chinese Society of Rare Earths (CSRE), the electric vehicle (EV) sector alone accounts for 30% of this demand, followed by inverter air conditioners and industrial robots at 16% each, and wind turbines at 12%.

China’s Production Leadership

In 2023, China produced 270,000 tons of rough NdFeB materials, marking an 18% increase from the previous year and nearly double the output from 2021. Production of sintered NdFeB magnets rose to 255,200 tons, reinforcing China’s leadership in the global magnet market. The output of samarium-cobalt magnets also increased to 3,723 tons.

Major Growth Sectors

The automotive industry, especially EVs, is the largest consumer of NdFeB magnets, with China’s automobile sector demanding 36,200 tons in 2023. Electronic power steering systems and industrial robots further boost consumption, with China producing 72% of the world’s robots this year.

China’s rare earth smelting and separation output reached 337,300 tons in 2023, a significant jump from 96,900 tons in 2010. As the global market shifts toward cleaner energy and advanced technologies, the outlook for NdFeB magnets remains strong.