Rare Earth Magnet Global Market Report 2025

The rare earth magnet market size has grown strongly in recent years. It will grow from $17.74 billion in 2024 to $19.2 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth during the historic period can be attributed to factors such as the rising demand for electric vehicles, the expansion of the renewable energy sector, increasing industrial automation, military and defense applications, and the growth of consumer electronics.

The rare earth magnet market size is expected to see strong growth in the next few years. It will grow to $26.02 billion in 2029 at a compound annual growth rate (CAGR) of 7.9%. Growth in the forecast period can be attributed to the increasing demand for high-efficiency motors, rising investments in electric vehicle infrastructure, the growing adoption of rare earth magnets in robotics, advancements in manufacturing techniques, and the rising need for stronger and more durable magnets in medical devices. Key trends in the forecast period include the development of alternative magnetic materials, the shift toward magnet recycling to reduce environmental impact, advancements in magnet manufacturing technology, innovations in wind energy generation, and the integration of AI and automation in magnet manufacturing.

The growing adoption of electric vehicles is expected to drive the expansion of the rare earth magnet market. Electric vehicles are powered by electric motors that run on energy stored in rechargeable batteries. The rise in electric vehicle adoption is largely driven by increasing environmental concerns, with both consumers and governments seeking to reduce carbon emissions and dependence on fossil fuels, leading to a shift toward cleaner, more sustainable transportation options. Rare earth magnets play a crucial role in electric vehicles by enabling powerful, compact electric motors that enhance energy efficiency and vehicle performance. For example, in January 2024, the U.S. Energy Information Administration, a government agency, reported that combined sales of hybrid, plug-in hybrid, and battery electric vehicles accounted for 16.3% of total U.S. light-duty vehicle sales in 2023, up from 12.9% in 2022, indicating a significant shift toward electrified transportation. As a result, the growing adoption of electric vehicles is contributing to the growth of the rare earth magnet market.

Companies in the rare earth magnet market are increasingly focusing on integrating innovative technologies, such as advanced artificial intelligence (AI), to boost production efficiency, enhance product quality, and optimize supply chain management. AI technologies play a key role by improving the design and production processes, predicting material behavior, and enhancing manufacturing operations. For instance, AI can help with precise material modeling, reduce waste, and ensure the production of higher-quality magnets. In June 2024, UK-based Materials Nexus Limited, specializing in AI-driven material discovery, announced the development of MagNex - a rare earth-free permanent magnet created in just three months using its AI-powered platform. This innovation, developed in collaboration with the Henry Royce Institute and the University of Sheffield, offers a more sustainable alternative to traditional magnets, with an 80% reduction in production costs and a 70% decrease in carbon emissions. MagNex is particularly suited for high-demand industries such as electric vehicles, wind turbines, robotics, and drones.

In April 2025, Realloys Inc., a U.S.-based manufacturing company, acquired PMT Critical Metals for an undisclosed sum. This acquisition aims to solidify Realloys' position as a key supplier of high-performance magnet materials for U.S. protected markets, including the National Defense Stockpiles, Defense Industrial Base, and Nuclear Industrial Base. PMT Critical Metals specializes in producing rare earth magnets, which are essential for various high-tech and clean energy applications.

Major players in the rare earth magnet market are Shin-Etsu Chemical Co. Ltd., TDK Corporation, Hitachi Metals, China Northern Rare Earth Group, Beijing Zhong Ke Magnetic Materials, Zhong Ke San Huan High-Tech Co., Ningbo Yunsheng Co. Ltd., Lynas Rare Earths Ltd., MP Materials Corp., Arnold Magnetic Technologies, Bunting Magnetics Co., Goudsmit Magnetics, Eclipse Magnetics Ltd., Electron Energy Corporation, Toshiba Materials Co. Ltd., Adams Magnetic Products, Shenzhen Zhaobao Magnet Co Ltd., Dura Magnetics Inc., Magnet Applications Inc., Ucore Rare Metals Inc., Rare Element Resources Ltd, and Earth-Panda Advance Magnetic Material Co. Ltd.

North America was the largest region in the rare earth magnet market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in rare earth magnet report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the rare earth magnet market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Rare earth magnets are powerful permanent magnets made from alloys that include rare earth elements. Known for their exceptionally high magnetic strength and efficiency, these magnets are essential in modern technologies due to their ability to retain strong magnetism in compact sizes. They are widely used in advanced electronics, medical equipment, and renewable energy systems.

The main types of rare earth magnets include sintered neodymium-iron-boron, bonded neodymium-iron-boron, samarium-cobalt, praseodymium-neodymium-iron-boron, and dysprosium-neodymium-iron-boron. Sintered NdFeB magnets, produced through powder metallurgy, are high-strength permanent magnets commonly used in demanding applications such as motors, turbines, and data storage. These magnets are available in various grades - high-performance, mid-performance, and low-performance - and are utilized across numerous industries, including automotive, consumer electronics, energy, healthcare, industrial equipment, and others.

The rare earth magnet market research report is one of a series of new reports that provides rare earth magnet market statistics, including rare earth magnet industry global market size, regional shares, competitors with a rare earth magnet market share, rare earth magnet market segments, market trends, and opportunities, and any further data you may need to thrive in the rare earth magnet industry. This rare earth magnet 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 rare earth magnet market consists of sales of neodymium (NdFeB) magnets, samarium-cobalt (SmCo) magnets, cerium magnets, alnico magnets, bonded rare earth magnets, sintered rare earth magnets, and magnetostrictive materials. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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