Neodymium Market Report 2026

The neodymium market size has grown strongly in recent years. It will grow from $3.71 billion in 2025 to $3.98 billion in 2026 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to growth of automotive industry, rising demand for wind energy, increasing electrical and electronics applications, expansion of metallurgical uses, development of laser technologies.

The neodymium market size is expected to see strong growth in the next few years. It will grow to $5.2 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing adoption in electric vehicles, rising need for energy-efficient motors, growth of renewable energy infrastructure, expansion of high-performance electronic devices, development of advanced neodymium alloys. Major trends in the forecast period include rising demand for neodymium-based permanent magnets, growth in neodymium oxide for laser and optical applications, increasing use of neodymium in catalysts, expansion of neodymium glass and ceramic applications, development of high-purity neodymium products for electronics.

Growing global demand for electric vehicles is expected to support the expansion of the neodymium market. Electric vehicles run either entirely on electric power or are partially powered by electricity, using electric motors instead of conventional internal combustion engines. Neodymium is widely used in EV motors because it is an ideal material for high-performance magnets that convert electrical energy into motion, which helps increase efficiency and reliability. For example, in 2023, the International Energy Agency reported that global electric car sales were 3.5 million higher than in 2022, representing a 35% year-over-year increase, with three major markets leading global demand. Therefore, the rising adoption of electric vehicles is contributing to the growth of the neodymium market.

Companies in the neodymium industry are increasingly focused on expanding production capacity and improving supply chains for high-purity neodymium-praseodymium (NdPr) oxide to meet growing demand from EVs, renewable energy systems, and industrial magnet applications. High-purity NdPr oxide is a refined rare-earth material consisting mainly of neodymium and praseodymium that provides consistent quality and better compatibility than lower-grade concentrates, enabling efficient manufacturing of NdFeB permanent magnets used in EV drive systems and other advanced technologies. For instance, in August 2025, Energy Fuels Inc., a U.S.-based rare-earth producer, commercialized its high-purity NdPr oxide for EV magnet applications and entered into a memorandum of understanding with Vulcan Elements to supply NdPr and dysprosium oxides for testing and validation in domestic magnet manufacturing. The product delivers purity levels above 99.5%, and the partnership aims to support long-term supply agreements that strengthen the U.S. supply chain for critical magnet materials.

In April 2023, Neo Performance Materials Inc., a Canadian manufacturer of specialty materials, acquired a majority stake in SG Technologies Group Limited for an undisclosed amount. Through this acquisition, Neo plans to begin producing sintered rare-earth magnets in Estonia by 2025 to serve markets such as electric vehicles, electronics, and high-efficiency industrial motors, while also expanding its rare-earth processing and magnet-manufacturing presence across Europe. SG Technologies Group Limited is a U.K.-based company specializing in the production of high-performance magnetic components and assemblies for industrial and commercial applications.

Major companies operating in the neodymium market report are Lynas Rare Earths Ltd., MP Materials Corp., China Northern Rare Earth Group High-Tech Co. Ltd., Shenghe Resources Holding Co. Ltd., Baotou Steel Rare-Earth Co. Ltd., Chinalco Rare Earth Co. Ltd., JXTC Rare Earth Co. Ltd., Neo Performance Materials Inc., Neo Material Technologies, Arafura Rare Earths Limited, Alkane Resources Ltd., Australian Strategic Materials Ltd., Greenland Minerals Ltd., Rainbow Rare Earths Limited, Peak Rare Earths, Northern Minerals Limited, Rare Element Resources Ltd., Avalon Advanced Materials Inc., Ucore Rare Metals Inc., Medallion Resources Ltd., Texas Mineral Resources Corp., GanZhouQianDong Rare Earths Group Co. Ltd., China Rare Earth Holdings Limited.

Asia-Pacific was the largest region in the neodymium market in 2025. The regions covered in the neodymium market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the neodymium market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The neodymium market consists of sales of N35 magnet grade, N38 magnet grade and N40 magnet grade. 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 that 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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