1. Global Strong Magnet Demand: Current Situation and Core Driving Forces

The global strong magnet market has entered a period of steady growth driven by the global energy transition, intelligent manufacturing upgrading, and the rapid popularization of new energy vehicles. Strong magnets, especially high-performance neodymium-iron-boron (NdFeB) permanent magnets, have become core functional materials supporting modern industrial development due to their superior magnetic energy product and coercivity. According to industry data, the global permanent magnet material market size is expected to reach approximately 45 billion US dollars in 2025, with high-performance NdFeB accounting for more than 60% of the market share, and China contributing over 60% to the global market scale . This data fully reflects the pivotal position of strong magnets in the global industrial chain and the significant role of the Chinese market in the supply and demand pattern.

The core driving forces behind the growth of strong magnet demand are highly concentrated in several emerging strategic industries, among which the new energy vehicle industry is the most prominent engine. With the acceleration of the global "carbon neutrality" process, major economies have successively introduced policies to phase out fuel vehicles, driving the continuous expansion of the new energy vehicle market. In 2025, the penetration rate of new energy vehicles in China has reached 44.3%, and it is expected that the global sales of new energy vehicles will exceed 25 million units throughout the year . The demand for strong magnets in new energy vehicles is extremely huge: each pure electric vehicle consumes about 12-16 kilograms of rare earth magnets, while each hybrid electric vehicle consumes about 2.5-5 kilograms . Compared with 2023, the average usage of permanent magnets per global electric vehicle has increased by 23%, and this growth trend is expected to continue with the continuous improvement of motor performance requirements . In addition, the gradual popularization of 800V high-voltage platforms and hub motor technologies in new energy vehicles has put forward higher requirements for the high-temperature resistance and insulation performance of strong magnets, further promoting the demand for high-end products.

The renewable energy industry, especially wind power generation, is another important driving force for strong magnet demand. Direct-drive permanent magnet wind turbines have become the mainstream direction of wind power technology development due to their advantages of high efficiency, low noise, and simple structure. By 2025, the penetration rate of direct-drive permanent magnet wind turbines in global wind power installations has exceeded 65%, and even reached more than 70% in new installations . China's wind power installed capacity has broken through 600GW, and the demand for strong magnets in the wind power industry is growing at an annual rate of 30% . The large-scale development of wind turbines, especially offshore wind turbines, has further increased the demand for strong magnets: each megawatt of direct-drive permanent magnet wind turbine requires about 600-800 kilograms of high-performance NdFeB magnets, and the demand for magnets in offshore wind power will surpass that in onshore wind power for the first time in 2025 . In addition, the rapid development of photovoltaic inverters and energy storage systems has also driven the steady growth of demand for soft magnetic materials, which is closely related to the overall development of the strong magnet industry.

The industrial automation and robot industry has emerged as a new growth point for strong magnet demand. With the acceleration of global intelligent manufacturing, the sales volume of industrial robots is growing rapidly, and it is expected that the sales volume of domestic industrial robots in China will increase by 35% in 2025 . Precision servo motors in industrial robots have an urgent demand for high magnetic energy product (>55MGOe) magnets, and humanoid robots have become a new hot spot: each humanoid robot needs about 2 kilograms of high-performance NdFeB magnets . In addition, the upgrading of energy efficiency standards in industrial motors has also promoted the replacement demand for high-performance permanent magnet motors. Compared with traditional asynchronous motors, permanent magnet synchronous motors can save more than 30% of energy, which has been widely promoted in various industrial fields . The consumer electronics field, although the growth of traditional products such as smartphones has slowed down, the innovative hardware represented by AR/VR devices, foldable screen terminals, and high-performance laptops has continued to drive the development of miniaturized and high-frequency soft magnetic components, and the market size of micro-motor magnets for AR/VR devices has increased by 90% year-on-year .

In addition to the above industries, the household appliance industry is also a stable demand market for strong magnets. The popularization of frequency conversion technology has promoted the upgrading of household appliances. Frequency conversion compressors in air conditioners, refrigerators and other products widely use sintered NdFeB permanent magnet materials, which can save more than 30% of energy and reduce noise . The energy-saving elevator field also has a large demand for strong magnets. The permanent magnet synchronous tractor adopts high-performance NdFeB materials, which has the characteristics of energy saving, environmental protection, low speed and large torque . With the improvement of global residents' living standards and the acceleration of urbanization, the demand for these household appliances and infrastructure facilities will continue to exist, providing a stable foundation for the demand for strong magnets.

2. Supply-Side Constraints and Their Impact on Future Demand Patterns

While the demand for strong magnets is growing rapidly, the supply side is facing multiple constraints, including tight supply of rare earth raw materials, high technical barriers to high-end production capacity, and policy regulations. These constraints will not only affect the supply capacity of the strong magnet market, but also reshape the future demand pattern, leading to structural changes in the market.

The tight supply of rare earth raw materials is the most core constraint in the strong magnet industry. Rare earth elements such as neodymium, praseodymium, dysprosium, and terbium are the core raw materials for high-performance NdFeB magnets. China controls 60% of the global rare earth reserves and 85% of the separation and purification capacity, and is the "ballast stone" of the global rare earth permanent magnet supply chain . However, China has implemented strict total quantity control on rare earth mining and smelting separation, and special quotas on strategic elements such as praseodymium, neodymium, dysprosium, and terbium. The rare earth mining quota in 2025 only increased by 5% compared with 2024, which limits the rapid release of short-term supply . At the same time, the production progress of overseas rare earth projects (such as the US Mountain Pass and Australia Lynas) has been delayed, leading to the expansion of the global supply gap . According to forecasts, the global supply gap of praseodymium-neodymium oxide (the core raw material of NdFeB) will expand to 5.8% in 2025, with a supply gap of 1,496 tons in 2025 and 4,111 tons in 2026 . In the long run, the supply gap will further expand: Adamas Intelligence predicts that by 2030, the global supply gap of NdFeB alloys and powders will reach 60,000 tons, and by 2040, this gap will soar to 246,000 tons, which is almost equivalent to the global output in 2023 .

The high technical barriers to high-end production capacity are another important factor restricting supply. High-performance NdFeB magnets have high capital and technical barriers in the production process, including technologies such as crystal boundary diffusion, heat treatment, and coating. The expansion speed of production capacity is relatively slow and the cycle is long, making it difficult to quickly make up for the demand gap in the short term . At present, although China's high-end NdFeB blank production capacity is expected to exceed 150,000 tons in 2025, there is still a supply gap of about 30% for high-performance products . In addition, China still has a high dependence on imports for high-end products, with an import dependence rate of 35%, reflecting the structural contradictions in the industrial chain . Japanese and German enterprises have obvious advantages in the field of automotive-grade magnets and special applications, with product premiums ranging from 30% to 50% . The core technologies and patents of NdFeB permanent magnet materials are concentrated in a few companies, and global competition is becoming increasingly fierce .

Industrial policies and environmental regulations in various countries have also had a profound impact on the supply of strong magnets. China has promoted industry integration through new regulations on total rare earth control and green production, and shut down illegal mining enterprises, which has standardized the supply order but also restricted the release of supply . The EU's Carbon Border Adjustment Mechanism (CBAM) has included permanent magnets in the second-phase taxation list, stimulating local enterprises to accelerate the layout of recycling systems . The EU's Critical Raw Materials Act requires member states to increase the recovery rate of rare earth permanent magnets to 25% by 2025 . The United States has included rare earths in the "critical mineral list" and introduced relevant tax credit policies to encourage the construction of local supply chains . These policies have not only affected the production layout of strong magnets, but also promoted the transformation of the industry towards green and low-carbon development, and the development of recycling economy has become an important direction.

The constraints on the supply side will have a series of impacts on the future demand pattern of strong magnets. First, the supply gap will lead to the high operation of product prices, which will force downstream industries to optimize the usage of magnets and promote technological innovation in material saving . For example, automakers may reduce the usage of rare earth magnets through motor design optimization, or increase the research and development of non-rare earth permanent magnet materials . Second, the structural shortage of high-performance products will further highlight the importance of technological innovation. Enterprises with core technologies such as low-rare earth and heavy-rare earth-free magnet preparation will gain more market opportunities . Third, the supply chain restructuring driven by policies will lead to regionalization of demand. Europe and North America are accelerating the construction of local strong magnet supply chains to reduce dependence on China. It is expected that at least five 10,000-ton-class magnet factories will be formed by 2026 . This will not only change the global trade flow of strong magnets, but also make the demand in these regions more inclined to local suppliers.

In response to supply-side constraints, the strong magnet industry is actively promoting technological innovation and industrial chain upgrading. In terms of technology, the global patent application volume of rare earth magnets has exceeded 8,000 in 2024, with China accounting for 65%. The patent focus is concentrated on low-heavy rare earth magnet formulas, crystal boundary diffusion technology and recycled magnet processes . Nano-grain control technology has increased the coercivity of magnets by 20%, and this technology will be commercially applied in high-end products in 2025 . Chinese enterprises have also made breakthroughs in rare earth doping and crystal boundary diffusion technologies, and the proportion of patents in the field of cutting-edge dysprosium reduction technology has exceeded that of Japanese enterprises for the first time . In terms of the industrial chain, leading enterprises are strengthening vertical integration, extending from "selling materials" to "selling magnetic components", and providing integrated motor solutions for automakers to increase added value . At the same time, the construction of the recycling system is accelerating. The global production capacity of recycled NdFeB will surge by 40% year-on-year in 2025, and recycled magnets are expected to meet 15% of global demand by 2030 . A leading enterprise has built a closed-loop industrial chain of "rare earth waste recycled magnetic powder customized magnets", which has increased the gross profit margin by 8 percentage points .

3. Short-Term, Medium-Term and Long-Term Demand Forecast for Strong Magnets

Based on the analysis of core driving forces and supply-side constraints, the global strong magnet demand will show a continuous growth trend in the short, medium and long terms, but the growth rate and structural characteristics will vary in different periods. The following will predict the demand pattern of strong magnets in the short term (2025-2026), medium term (2027-2030) and long term (2031-2040) respectively.

In the short term (2025-2026), the global strong magnet demand will maintain a high growth rate, but the growth rate will slow down compared with the previous two years. Driven by the new energy vehicle and wind power industries, the global demand for high-performance NdFeB is expected to grow by 15-20% annually . The global permanent magnet material market size will reach 45 billion US dollars in 2025 and is expected to break through 50 billion US dollars in 2026 . In terms of application structure, the new energy vehicle field will still be the largest demand segment, accounting for more than 40% of the total demand . The demand for strong magnets in the wind power industry will exceed 150,000 tons in 2025, and will continue to grow with the continuous expansion of offshore wind power . The industrial robot field will show explosive growth, with the demand for strong magnets increasing by more than 50% year-on-year . However, affected by the tight supply of rare earth raw materials, the supply gap of high-performance products will further expand, and the price of strong magnets will remain at a high level, which may restrict the demand release of some small and medium-sized enterprises . In terms of regional demand, the Asian market, led by China, will still be the main demand area, accounting for more than 60% of the global demand. The demand in Europe and North America will grow rapidly with the construction of local supply chains .

In the medium term (2027-2030), the global strong magnet demand will enter a stable growth period, with an average annual compound growth rate of about 8-12% . By 2030, the global permanent magnet material market size is expected to break through 300 billion yuan (about 42 billion US dollars), of which the high-performance NdFeB market size will exceed 28 billion US dollars . The application structure will be more diversified: the proportion of new energy vehicles in the total demand will further increase to more than 45%, and the wind power industry will maintain a stable demand . The emerging fields such as industrial robots, AR/VR devices, and medical imaging equipment will become important growth points, and the demand for special magnets will increase significantly . The supply-side constraints will be partially alleviated: the output of overseas rare earth projects will gradually be released, the technical barriers of high-end production capacity will be broken through, and the recycling system will be increasingly improved . By 2030, recycled magnets will meet 15% of the global demand, effectively supplementing the supply gap . In terms of regional pattern, the regionalization of the supply chain will be basically formed, and Europe and North America will realize 30% of the local supply of permanent magnet materials . The demand for strong magnets in emerging markets such as Southeast Asia and Africa will grow rapidly with the acceleration of industrialization and infrastructure construction .

In the long term (2031-2040), the global strong magnet demand will still maintain a growth trend, but the growth rate will tend to be gentle. The global demand for NdFeB alloys and powders will reach a huge scale, and the supply gap will expand to 246,000 tons by 2040 . The main driving forces will come from the deepening of energy transformation, the popularization of intelligent manufacturing, and the innovation of emerging technologies . In the energy field, the proportion of renewable energy such as wind power and solar energy in the global energy structure will continue to increase, and the demand for strong magnets in energy storage systems and smart grids will grow steadily . In the field of intelligent manufacturing, humanoid robots, intelligent logistics equipment, and industrial Internet of Things will drive the continuous growth of demand for precision magnets . The application of new technologies such as magnetic levitation technology and quantum computing will also open up new demand space for strong magnets . In terms of supply, the global rare earth resource development will be more diversified, and the supply capacity of raw materials will be significantly improved . The technological innovation of strong magnets will make new breakthroughs, and the performance of non-rare earth permanent magnet materials will be continuously improved, which may partially replace rare earth permanent magnets in some fields . The recycling rate of strong magnets will be further improved, and the circular economy will become an important part of the industrial chain . In terms of the market pattern, the competition will be more fierce, and the market share will be further concentrated in leading enterprises with core technologies, resource advantages and perfect industrial chains .

It should be noted that there are still many uncertainties in the future demand for strong magnets, which may be affected by factors such as macroeconomic fluctuations, technological breakthroughs of alternative materials, and changes in geopolitical policies . For example, the slowdown of the global economy may lead to a decline in the demand for new energy vehicles and industrial robots, thereby affecting the demand for strong magnets . The breakthrough of alternative materials such as permanent magnet ferrite and non-rare earth permanent magnets may reduce the demand for rare earth permanent magnets . Changes in geopolitical policies may lead to trade barriers and supply chain disruptions, affecting the stable operation of the market . Therefore, enterprises in the industry need to strengthen market research and technical innovation, and flexibly adjust their development strategies according to changes in the market environment.

4. Regional Demand Characteristics and Future Evolution Trends

The global strong magnet demand shows obvious regional differences, which are closely related to the level of industrial development, policy orientation, and resource endowment of various regions. With the acceleration of supply chain restructuring and the deepening of energy transformation, the regional demand pattern of strong magnets will also undergo profound changes. This section will focus on analyzing the demand characteristics of major regions such as Asia, Europe, North America, and emerging markets, and predict their future evolution trends.

Asia is the global core demand region for strong magnets, with China, Japan, and South Korea as the main pillars. China is not only the world's largest producer of strong magnets, but also the largest consumer . In 2025, China's permanent magnet market size is expected to reach 71.302 billion yuan, accounting for about 30% of the global market . The demand in China is mainly driven by the new energy vehicle, wind power, and industrial robot industries: China's new energy vehicle production and sales rank first in the world, and the wind power installed capacity is the largest in the world . The flat magnet segment in China is growing rapidly, with a market size of about 15 billion yuan in 2024-2025, and is expected to grow to about 38 billion yuan by 2030 with a compound annual growth rate of 12.5% . By 2030, the new energy vehicle field will contribute about 35% of the demand for flat magnets, and the consumer electronics field will account for about 25% . Japan and South Korea are mainly focused on the high-end strong magnet market, with strong technical advantages in automotive-grade magnets and consumer electronics magnets . The demand in these two countries is mainly driven by the high-end manufacturing industry, and the demand for high-performance and high-precision strong magnets is stable . In the future, Asia's demand for strong magnets will continue to grow, but the growth rate will slow down. The demand structure will tend to be high-end, and the proportion of high-performance products will continue to increase . At the same time, with the transfer of some manufacturing industries to Southeast Asia, the demand for strong magnets in Southeast Asian countries will grow rapidly .

Europe is an important demand region for strong magnets, with a high demand for new energy vehicles and renewable energy. The EU has introduced a series of policies to promote the development of green energy and new energy vehicles, and the penetration rate of new energy vehicles in major European countries has exceeded 30% . The wind power industry in Europe is developed, especially offshore wind power, which has a huge demand for high-performance strong magnets . In addition, the industrial automation level in Europe is high, and the demand for strong magnets in the industrial robot and precision manufacturing fields is stable . However, Europe is highly dependent on imports for strong magnets, and the supply chain vulnerability has been exposed . In response, the EU has introduced the Critical Raw Materials Act and accelerated the construction of local supply chains . It is expected that by 2030, Europe will realize 30% of the local supply of permanent magnet materials, reducing dependence on Asian imports . In the future, Europe's demand for strong magnets will maintain steady growth, and the demand for green and low-carbon products will increase. The carbon footprint accounting and recycling requirements will become important factors affecting market access . The demand for strong magnets in the industrial robot and medical equipment fields will grow rapidly with the development of the high-end manufacturing industry .

North America's strong magnet demand is mainly driven by the new energy vehicle and aerospace industries. The United States is the core market in North America, with the rapid development of new energy vehicle manufacturers such as Tesla . The U.S. government has included rare earths in the critical mineral list and introduced tax credit policies to encourage the construction of local supply chains . Major automakers such as Tesla and Volkswagen have started to layout local rare earth mining and magnet processing plants . The aerospace and defense industry in North America has high requirements for high-performance strong magnets, and the demand is stable . In addition, the development of data centers and energy storage systems in North America has also driven the demand for soft magnetic materials . In the future, North America's demand for strong magnets will grow rapidly, and the local supply chain will be gradually improved . The demand for strong magnets in the new energy vehicle and energy storage fields will be the main growth points, and the demand for high-temperature resistant and radiation resistant magnets in the aerospace field will continue to exist . The demand for strong magnets in Mexico will grow with the transfer of the automotive manufacturing industry, becoming an important part of the North American market .

Emerging markets such as Southeast Asia, Africa, and South America are in the initial stage of strong magnet demand, but they have huge growth potential. These regions are in the process of industrialization and urbanization, and the demand for infrastructure construction, household appliances, and automobiles is growing rapidly . Southeast Asia has become a new magnet assembly hub due to its cost advantages and policy dividends, and its export volume increased by 40% year-on-year in 2024 . With the transfer of global manufacturing industries to Southeast Asia, the demand for strong magnets in the automotive parts and electronic manufacturing fields will grow rapidly . The demand for strong magnets in Africa and South America will be driven by the development of renewable energy and infrastructure construction . For example, the development of wind power and solar energy in Africa will drive the demand for strong magnets in wind turbines and photovoltaic inverters . In the future, the demand for strong magnets in emerging markets will maintain a high growth rate, becoming an important driving force for global demand growth. However, these regions also face challenges such as imperfect industrial chains and unstable policies, which may restrict the release of demand .