Permanent Magnet Market To Reach US$67.25 Billion By 2033 Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) The permanent magnet market is gaining unprecedented momentum, fueled by soaring demand from the electric vehicle and renewable energy sectors reshaping the industrial landscape. Innovation relentlessly advances to boost magnet performance and strategically address raw material supply chain vulnerabilities, ensuring resilient growth in this critical sector.

Chicago, Sept. 22, 2025 (GLOBE NEWSWIRE) -- The global permanent magnet market was valued at US$ 32.86 billion in 2024 and is expected to reach US$ 67.25 billion by 2033, growing at a CAGR of 8.47% during the forecast period 2025–2033.

The foundation of the permanent magnet market rests upon the availability of critical rare earth elements, whose supply is dictated by geopolitical strategies and mining outputs. In 2024, global rare earth mining output impressively surged to 390,000 metric tons, a clear indicator of escalating demand. China's dominant role was underscored by its production reaching 270,000 metric tons in 2024, with projections for 2025 showing it will account for 69% of global rare earth element mining. In a move toward supply diversification, the United States increased its domestic rare earth oxide (REO) equivalent output to a notable 45,000 metric tons in 2024.

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China's influence extends powerfully downstream; its share of rare earth separation and metallization is expected to be near a commanding 90% in 2025. While production is scaling, market prices for key oxides have seen corrections, providing some relief to manufacturers. In 2024, the price of Neodymium oxide adjusted to $56 per kilogram. Concurrently, the price of Terbium oxide fell to $810 per kilogram, and the price of Dysprosium oxide dropped to $260 per kilogram, creating a dynamic pricing environment for raw material procurement.

Key Findings in Permanent Magnet Market

Market Forecast (2033)	US$ 67.25 billion
CAGR	8.47%
Largest Region (2024)	Asia Pacific (69.20%)
By Type	Neodymium Iron Boron (NdFeB) Magnets (48.02%)
By Manufacturing Process	Sintered Magnets (64.73%)
By End Users	Automotive (39.65%)
By Grade	High Grade (52.10%)
By Distribution Channel	Offline (82.99%)
Top Drivers	Surging global demand for electric and hybrid vehicles accelerates growth. Expansion of renewable energy, particularly wind power, boosts magnet demand. Miniaturization trend in consumer electronics requires powerful, compact magnets.
Top Trends	Increasing focus on recycling rare earth magnets to ensure sustainability. Development of high-temperature magnets for more demanding industrial applications. Growing investment in rare-earth-free permanent magnet research and development.
Top Challenges	Price volatility and supply chain instability of rare earth materials. Environmental concerns associated with the mining and processing of rare earths. Technical difficulties in developing cost-effective, high-performance magnet alternatives.

Electric Vehicle Propulsion Emerges as the Dominant Market Demand Driver

The automotive industry's rapid pivot to electrification stands as the single most powerful force energizing the permanent magnet market. The demand for rare earth elements specifically from EV motors reached an impressive 37 kilotons in 2024. This figure is projected to accelerate further, climbing to 43 kilotons in 2025. The scale of production is immense, with the total number of EV motors produced in 2024 reaching 22.9 million units. A significant forecast sees this number growing to 28.1 million units in 2025, highlighting the sector's explosive growth.

The dominant motor technology, Permanent Magnet Synchronous Motors (PMSMs), accounted for 19.7 million of these units in 2024 in the permanent magnet market. The adoption of PMSMs is set to continue its upward trend, with an expected 24.1 million units in 2025. Leading the charge, Tesla's production of EVs surpassed 2.1 million units in 2024. In the same year, competitor BYD's production exceeded 3 million EV units, with both automakers relying heavily on rare earth magnets for their powertrain efficiency and performance.

Renewable Energy Transition Fuels Unprecedented Growth in Magnet Consumption

The global pursuit of clean energy solutions is creating substantial demand for the permanent magnet market, particularly from the wind energy sector. Large permanent magnets are essential for the efficiency of direct-drive wind turbines. China's commitment to wind power is evident, with its new installations in 2024 totaling a massive 80.45 gigawatts. Forecasts for 2025 anticipate a continued expansion, with 87 gigawatts of new installations planned. This translates directly into significant magnet consumption.

The demand for Neodymium-Iron-Boron (NdFeB) magnets from China's wind sector alone stood at 9,735 metric tons in 2024, illustrating the sector's material-intensive nature. Technological advancements are also pushing demand boundaries. In a significant development, Siemens Gamesa launched a new offshore wind turbine model in 2024. This powerful turbine has a 15 MW capacity and relies on high-performance neodymium magnets, setting a new benchmark for the industry and reinforcing the link between renewable energy goals and the Permanent magnet market.

Automation and Advanced Electronics Drive Widespread Miniaturized Magnet Demand

High-performance magnets in the permanent magnet market are the invisible engines powering modern industrial automation, robotics, and consumer electronics. In manufacturing, it is projected that China's industrial robot production will reach an incredible 941,000 units in 2025. These machines depend on magnetic sensors for precise position feedback and magnetic encoders for accurate motion control. Furthermore, magnetic grippers are employed by robotic arms in automated warehouses, and magnetic levitation systems are revolutionizing automated conveyors by eliminating friction.

In the consumer sphere, the trend of miniaturization ensures consistent demand. Global smartphone shipments reached nearly 1.3 billion units in 2024, with each device containing multiple tiny magnets. The demand for NdFeB magnets from mobile phone production is expected to reach 3,698 metric tons in 2025 across the global permanent magnet market, with production projected at 1.85 billion units. In 2024, air conditioner production, another major consumer, hit 270 million units, creating a demand for 21,000 metric tons of NdFeB magnets. Permanent magnets are now integral to a vast range of devices, including tablets, earbuds, VR headsets, and wireless chargers.

Western Manufacturing Expansion Projects Intend to Diversify Global Supply Chains

In a strategic response to supply chain vulnerabilities, significant investments are being made to establish magnet manufacturing capabilities outside of Asia permanent magnet market. Neo Performance Materials' facility in Estonia is a key project, set to begin commercial production in 2025 with an initial capacity of 2,000 tons per year of NdFeB magnet blocks. A planned second phase aims to increase this capacity to 5,000 tons per year. GKN Powder Metallurgy is also making ambitious moves, planning to establish a total capacity of 4,000 tons per year of rare earth magnets across Europe and North America, with a pilot plant in Germany scheduled to be operational in early 2025.

The United States is a focal point of this diversification. The U.S. Department of Defense has invested heavily, awarding over $439 million since 2020 to establish domestic rare earth supply chains. Key projects include MP Materials' plant in Fort Worth, Texas, which will have a first-phase production capacity of 1,000 tons per year. In parallel, E-VAC Magnetics is establishing a commercial-scale rare earth magnet manufacturing facility in South Carolina, aiming to be fully operational by 2025, significantly boosting the resilience of the North American permanent magnet market.

Circular Economy Initiatives Emerge as a Critical and Viable Solution

Magnet recycling is rapidly transitioning from a niche concept to a critical component of a sustainable supply chain, mitigating raw material risks. HyProMag USA is at the forefront of this movement, aiming to capture 10% of the U.S. domestic NdFeB magnet demand within five years, starting from 2025. Its Texas Hub facility has an ambitious target for annual production, including 750 metric tons of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products.

The total payable capacity of the HyProMag facility will reach 1,557 metric tons of NdFeB annually. The financial viability is compelling, with an incremental capital cost of approximately US$7 million for the facility's expansion. Highlighting its environmental benefits, a carbon footprint study in March 2025 confirmed a remarkably low CO2 footprint of just 2.35 kg CO2 equivalent per kg of its recycled NdFeB product, showcasing a sustainable path forward for the Permanent magnet market.

Defense and Aerospace Applications Underscore Magnets' Immense Strategic Importance

The strategic value of permanent magnets is nowhere more apparent than in their critical role within advanced defense systems. The material requirements are substantial: each Arleigh Burke DDG-51 destroyer requires 5,200 pounds of rare earth elements. A single Virginia-class submarine needs an even greater amount at 9,200 pounds of these materials. Furthermore, the technologically sophisticated F-35 aircraft requires more than 900 pounds of rare earth elements for its complex systems to function in the permanent magnet market.

Recognizing this dependency, the U.S. Department of Defense has set a clear goal: to have a sustainable, mine-to-magnet supply chain capable of supporting all U.S. defense requirements by 2027. To achieve this, targeted funding has been deployed. As of March 2024, the DOD had awarded $28.8 million to Noveon Magnetics for a facility in Texas. Other awards include $2.3 million to TDA Magnetics to produce qualified magnets and a substantial $94.1 million award to E-VAC Magnetics to establish commercial-scale magnet manufacturing by 2025.

Innovation and Policy Are Actively Shaping the Future Market Trajectory

The future of the Permanent magnet market is being actively shaped by technological breakthroughs and supportive government policies. In 2024, the U.S. Department of Energy announced a significant advance in iron-nitride (Fe-N) based permanent magnets, presenting a potential rare-earth-free alternative. The pace of innovation is reflected in intellectual property, with a patent for an iron-rich permanent magnet issued on January 15, 2024, and another granted to Hangzhou Magmax Technology on September 17, 2024, for a novel demagnetization identification method.

Simultaneously, the permanent magnet market is exploring alternatives, evidenced by Valeo and MAHLE launching a magnet-free electric motor in 2024, signaling a potential long-term technological diversification. Policy is also a powerful catalyst. A U.S. bill introduced in February 2025, the Rare Earth Magnet Security Act (REMSA), proposes a production tax credit of $20 per kilogram for magnets manufactured in the United States. This incentive powerfully increases to $30 per kilogram if the component rare earth material is also sourced or recycled domestically.

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Competitive Landscape Analysis Reveals Highly Concentrated Production Power Centers

The competitive landscape for high-performance sintered NdFeB magnets, a crucial segment of the Permanent magnet market, is characterized by a group of dominant industry players. In 2024, China's total rare earth permanent magnet material production was approximately 246,500 metric tons, a figure expected to rise to 265,000 metric tons in 2025. This production is concentrated among several key companies. Leading Chinese producers include Ningbo Yunsheng Co., Ltd., Beijing Zhong Ke San Huan High-Tech, JL MAG Rare-Earth, Yantai Shougang Magnetic Materials Inc., and Chengdu Galaxy Magnets.

Beyond China, several other major global players are instrumental in the market. Proterial (formerly Hitachi Metals) and Shin-Etsu Chemical from Japan are renowned leaders in premium magnet technologies, with Shin-Etsu focusing on eco-friendly production. TDK Corporation is another key Japanese manufacturer known for innovation in energy-efficient designs. From Germany, VACUUMSCHMELZE GmbH & Co. KG is a critical supplier of customized magnetic solutions, particularly for high-end automotive applications, creating a dynamic and highly competitive global arena.

Global Permanent Magnet Market Major Players:

• TDK Corporation
• Shin-Etsu Chemical Co., Ltd.
• Daido Steel Co., Ltd .
• MP Materials Corp.
• Lynas Rare Earths Ltd.
• Ningbo Yunsheng Co., Ltd.
• Beijing Zhong Ke San Huan Hi-Tech Co., Ltd.
• VACUUMSCHMELZE GmbH & Co. KG (VAC)
• Arnold Magnetic Technologies
• Electron Energy Corporation
• Adams Magnetic Products Co.
• Hitachi Metals, Ltd.
• Other Prominent Players

Key Market Segmentation:

By Magnet Type

• Neodymium Iron Boron (NdFeB) Magnets
• Samarium Cobalt (SmCo) Magnets
• Alnico Magnets
• Ferrite Magnets

By Grade

• Low Grade
• Mid-Grade
• High Grade

By Manufacturing Process

• Sintered Magnets
• Bonded Magnets
• Injection Magnets
• Hot Pressed Magnets

By End User

• Automotive
• Consumer Electronics
• Industrial Equipment
• Aerospace & Defense
• Semiconductor
• Military
• Others

By Distribution Channel

• Online
• Offline
  • Direct Sales
  • Distributors

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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