Rare earth magnets such asNdFeB and SmCo are critical materials used in electric vehicle motors, wind turbine energy generators, industrial robotics and consumer electronics. However, high consolidation of the rare earth magnet supply chain in China has led to years of intensifying market turbulence and disruption.
The new research report from market intelligence firm IDTechEx, 'Rare Earth Magnets 2026-2036: Technologies, Supply, Markets, Forecasts', forecasts that rare earth magnet supply will exceed 330 ktonnes annually by 2036, with China poised to remain the major global producer over the next decade. Supply risks, growing demand, and national security concerns are fueling government and industry appetite for alternative rare earth magnet supply.
Market developments in 2025 highlight strong market pull for alternative rare earth supply
From trade wars, export restrictions, and now a monumental public-private partnership, 2025 will be a defining year for the rare earth magnet market. Escalating tariff threats between the USA and China generated significant uncertainty in rare earth product sectors reliant on magnet materials. In April 2025, first-of-their-kind export restrictions were imposed by China on NdFeB and SmCo magnet materials, stalling critical material supply to original equipment manufacturers across the world. Market turbulence culminated in the major announcement that the US Department of Defense will provide strategic funding support to North America's largest rare earth producer, MP Materials, through capital investment (>US$400M) and NdPr price floor commitments.
After a year of volatility and uncertainty, the announcement of increased government support could be the catalyst for growth emerging rare earth players have been waiting for. Low rare earth prices in recent years have squeezed margins for new market entrants and established players alike and impacted their competitiveness against market leaders in China. Price floor agreements and risk sharing are highly cited needs for new rare earth supply chains to get off the ground. It looks increasingly likely that more public-private partnerships will emerge downstream, as well as across Europe and Asia, if critical rare earth supply is to be secured in the future.
Outlook for rare earth magnet market beyond 2025
2025 might be the year that supply risks and critical material security concerns realize the expansion of domestic rare earth magnet supply chains that players outside of China have been waiting for. Technology innovations will have a central role to play, with growth opportunities presented for technologies offering scalable rare earth refining, improvements in magnet performance and cost, and effective recycling of valuable rare earths from end-of-life waste.
Despite the improving outlook for emerging rare earth magnet supply and demand outside of China, the limited availability of heavy rare earths will remain a sticking point. Technologies that address heavy rare earths – be that through the economic recovery from mineral concentrates, content reduction in NdFeB magnets, or recycling from waste – will be highly desirable.
IDTechEx forecasts that the rare earth magnet market will grow to US$9.19B in annual revenue by 2036, driven by growing demand in e-mobility, wind energy and robotics applications. IDTechEx's latest research report, 'Rare Earth Magnets 2026-2036: Technologies, Supply, Markets, Forecasts', provides a comprehensive overview of rare earth separation, magnet production, and recycling technologies and critical market analysis. The report contains 10-year granular rare earth magnet supply, demand, and recycling forecasts, by weight (tonnes) and revenue (US$) segmented by region, application and materials.
For more information on this report, including downloadable sample pages, please visitwww.IDTechEx.com/REM, or for the full portfolio ofresearch available fromIDTechEx, seewww.IDTechEx.com.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. For more information, contactresearch@IDTechEx.comor visitwww.IDTechEx.com.
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SOURCE IDTechEx
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