Strong magnets, particularly neodymium-iron-boron (NdFeB) magnets known as the "king of magnets," have become indispensable core materials in modern industrial systems. Their price trends are not only closely related to the operational costs of downstream industries such as new energy vehicles, wind power generation, and robotics but also affected by a complex interplay of global supply chains, policy regulations, raw material fluctuations, and technological advancements. This report systematically combs through the price trend of strong magnets, dissects the multi-dimensional driving mechanisms behind price changes, reviews historical fluctuation characteristics, analyzes the current market situation, and forecasts future trend directions, aiming to provide a comprehensive and in-depth reference for industry participants and investors.

1. Core Driving Factors Shaping the Price Trend of Strong Magnets

The price formation of strong magnets is a comprehensive result of multiple factors, among which the supply and demand relationship, raw material costs, policy regulations, and technological progress are the most critical drivers. These factors interact and restrict each other, jointly determining the direction and amplitude of price fluctuations.

Raw material costs are the fundamental cornerstone of strong magnet prices. Rare earth elements such as neodymium, praseodymium, dysprosium, and terbium account for 50% to 65% of the production cost of NdFeB magnets, and their price changes directly affect the cost structure of strong magnets . China dominates the global rare earth industry chain, controlling 90% of smelting and separation capacity and 80% of permanent magnet material production . The output and price of rare earths in China have a decisive impact on the global strong magnet market. For example, in 2025, China's rare earth mining quota growth slowed to 5.88%, and export controls on heavy rare earths such as dysprosium and terbium were tightened, leading to a 45% increase in domestic dysprosium oxide prices and a 50% increase in terbium oxide prices from the beginning of the year . Meanwhile, the instability of imported ore sources has further exacerbated supply tensions. Affected by geopolitics, Myanmar's rare earth ore imports fell by 21.7% year-on-year in the first five months of 2025 , which directly pushed up the cost of raw materials for strong magnets.

The supply-demand relationship is a direct driver of price fluctuations. In recent years, the rapid development of downstream emerging industries has triggered an explosive growth in demand for strong magnets. New energy vehicles are a major demand pillar: each new energy vehicle requires about 3kg of rare earth permanent magnets, and global new energy vehicle sales are expected to reach 10 million in 2025, driving strong magnet demand to exceed 200,000 tons, a year-on-year increase of 20% . The dawn of the humanoid robot mass production era has become a new growth point. Products such as Tesla Optimus require 2-4kg of high-performance NdFeB magnets per unit, and the demand in this field is expected to reach 23,600 tons by 2035, with a compound annual growth rate of 83.8% . In addition, the continuous expansion of green industries such as wind power generation and energy-saving elevators, as well as the popularization of consumer electronic products such as MagSafe accessories, have further expanded the demand for strong magnets. On the supply side, however, the expansion of strong magnet production capacity is restricted by factors such as rare earth resource constraints, environmental protection policies, and technological thresholds. The supply growth rate is difficult to keep up with the demand growth rate, resulting in a continuous expansion of the supply-demand gap and providing strong support for price increases .

Policy regulations have a profound impact on the price trend of strong magnets through supply and demand regulation. On the one hand, China's macro-control policies on the rare earth industry, such as total mining and smelting quotas, environmental protection inspections, and industry integration, have directly affected the supply of rare earth raw materials. For example, since the third quarter of 2024, North Rare Earth and Baotou Steel Group have raised the price of rare earth concentrate six consecutive times, which has been transmitted to the strong magnet market through the industrial chain . On the other hand, international trade policies have also exacerbated price volatility. The EU imposes an 18.2% anti-dumping duty on Chinese magnetic materials, increasing the cost of end products for European manufacturers . The US Department of Defense's $400 million investment in local rare earth enterprises and the setting of minimum purchase prices have raised the global psychological price anchor for rare earths, indirectly promoting the price increase of Chinese strong magnets .

Technological progress affects price trends by changing production costs and product structure. The breakthrough of grain boundary diffusion technology has reduced the usage of heavy rare earths such as dysprosium and terbium by 40%, reducing the cost of EH series magnets (working temperature ≥200℃) by 15% , which to a certain extent has alleviated the pressure of raw material price increases. The continuous improvement of technologies such as "dual alloy," fine powder preparation, and continuous sintering has improved production efficiency and product performance, promoting the upgrading of the strong magnet product structure. High-grade magnets (such as N52 and 38H) that meet the needs of extreme working conditions have a price 30%-50% higher than ordinary grades , and the continuous expansion of their market share has optimized the overall price structure of the industry. In addition, the development of alternative materials such as ferrite magnets with improved performance may form competition in the mid-to-low-end market and restrict the upward space of strong magnet prices .

2. Historical Price Fluctuation Characteristics of Strong Magnets (2021-2025)

From 2021 to 2025, the price of strong magnets showed obvious periodic fluctuation characteristics, which can be roughly divided into three stages: rapid rise, adjustment and stabilization, and steady recovery. Each stage of price changes is closely related to the combined effect of raw material price fluctuations, policy adjustments, and changes in market supply and demand.

The period from 2021 to 2023 was a stage of rapid price rise. Driven by the global energy transition and the rapid development of the new energy vehicle industry, the demand for strong magnets surged. At the same time, China strengthened the regulation of the rare earth industry, strictly controlling mining and smelting quotas, and environmental protection inspections forced a large number of small and medium-sized backward production capacities to withdraw. The supply-demand relationship became tight, and the price of rare earth raw materials continued to rise. During this period, the price of NdFeB magnets continued to climb, with the price of high-performance products increasing by more than 80%. Taking praseodymium-neodymium metal as an example, its price rose from about 400,000 yuan/ton in 2021 to a peak of 800,000 yuan/ton in 2023, directly driving the continuous rise of strong magnet prices. This stage of price increase was characterized by strong sustainability and wide impact, which significantly increased the production costs of downstream industries.

2024 was a stage of price adjustment and stabilization. In 2024, China's rare earth mining quota increased to 210,000 tons, a year-on-year increase of 12.5%, which alleviated the tight supply of raw materials to a certain extent . The price of rare earths fell sharply, with the average price of rare earths in 2024 dropping by 25% compared with 2023 . Affected by the decline in raw material prices and intense industry competition, the sales unit price of NdFeB magnetic steel of leading enterprises dropped to 283,300 yuan/ton, a year-on-year decrease of 25.69% . During this period, the price of strong magnets entered an adjustment stage, and the overall market showed a pattern of "volume increase and price decrease." Although the price fell, the market demand remained stable, and the industry's production and sales volume continued to grow. Enterprises focused on expanding production capacity and improving product quality to enhance market competitiveness. At the same time, leading enterprises actively laid out technologies such as scrap recycling and vertical integration to reduce the impact of raw material price fluctuations .

The first half of 2025 marked the beginning of a steady recovery stage. Since the second quarter of 2024, the price of rare earths has gradually stabilized and recovered. By the end of March 2025, the price of praseodymium-neodymium metal had increased by 11% compared with the beginning of the year . In April 2025, China implemented export license management on 7 types of heavy rare earth items such as dysprosium and terbium, which triggered a global supply chain shock. By May 1, the price of dysprosium soared to 850 US dollars/kg (an increase of 200%), and the price of terbium skyrocketed to 3,000 US dollars/kg (an increase of 211%) . The price increase of rare earth raw materials was quickly transmitted to the strong magnet link. As of June 2025, the price of China's NdFeB industry was 182.5 yuan/kg, a year-on-year increase of 1.67% . In the first half of 2025, the import volume of China's NdFeB alloy was 132.43 tons, a year-on-year increase of 122.88%, and the import amount was 28.637 million yuan, a year-on-year increase of 75.24% . The volume and price of imports rose simultaneously, reflecting the strong demand for high-end strong magnets in the domestic market. During this period, the price of strong magnets showed a steady upward trend, and the industry's profit level began to recover.

3. Current Price Situation and Market Dynamics of Strong Magnets (2025-2026)

Since the second half of 2025, the global strong magnet market has entered a period of tight supply and demand, and the price has maintained an upward trend. The market pattern is characterized by "tight supply, strong demand, and rising costs," and multiple positive factors jointly promote the steady rise of strong magnet prices. At the same time, changes in the global industrial chain and policy environment have also brought new variables to the market.

In terms of price performance, the price of strong magnets has continued to rise since the second half of 2025. Leading magnet material enterprises such as Hunan Benlang New Materials have issued price increase notices, raising the price of rare earth permanent magnets since July 2025 . The price of NdFeB magnets increased by about 10% year-on-year in 2025, and the price of high-end samarium-cobalt magnets increased by 15% . Entering 2026, the price upward trend has continued. In early January 2026, North Rare Earth and Baotou Steel Group jointly raised the associated transaction price of rare earth concentrate for the first quarter of 2026 by more than 2 percentage points to 26,834 yuan/ton (excluding tax) . This is the sixth consecutive price increase since the third quarter of 2024, reflecting the tight supply-demand relationship in the market and the enterprises' confidence in price increases. The continuous rise of upstream rare earth prices has laid a solid foundation for the price increase of strong magnets, and the price center of strong magnets is expected to further move up.

In terms of market supply, the concentration of the industry has further increased. China's rare earth mining and smelting quotas are mainly allocated to leading enterprises such as North Rare Earth and China Rare Earth Group, and small and medium-sized production capacities are accelerating to withdraw . The industry's supply capacity is concentrated in the hands of a few leading enterprises, which enhances the pricing power of enterprises. At the same time, the impact of imported ore sources is still continuing. Myanmar's rare earth ore exports are affected by civil wars and policy adjustments, and the supply is unstable , which further restricts the expansion of the global strong magnet supply capacity. In terms of production capacity expansion, although leading enterprises are actively promoting the construction of new projects, the production capacity release cycle is relatively long, and it is difficult to quickly alleviate the supply tension in the short term.

In terms of market demand, the multi-point explosion trend is obvious. The new energy vehicle industry continues to maintain a high growth rate, and the demand for strong magnets is stable and increasing. The rapid development of the low-altitude economy has driven the demand for lightweight motors, and the demand for NdFeB in the low-altitude economy field is expected to increase to 9,200 tons by 2035 . The wind power industry is also accelerating the layout of direct-drive units, which have higher requirements for permanent magnets and further expand the demand for high-performance strong magnets. In the consumer electronics field, the integration of MagSafe technology into iPhones and accessories has increased the demand for precision-calibrated strong magnets . The superposition of multiple demand sides has formed a strong driving force for the strong magnet market, making the demand rigid and difficult to reverse in the short term.

In terms of international market dynamics, the pattern of global industrial chain competition is undergoing profound changes. The US government has increased its support for the local rare earth industry, trying to build an independent rare earth industrial chain . However, due to technical and cost constraints, it is difficult to shake China's dominant position in the global strong magnet industry chain in the short term. The EU's Critical Raw Materials Act (CRMA) encourages the use of recycled rare earth inputs and gives tariff preferences , which promotes the development of the strong magnet recycling industry and may affect the supply structure of the market in the long run. The price difference between the international and domestic markets is also expanding. The overseas dysprosium oxide price has reached 850 US dollars/kg, a premium of 44% over the domestic market, and the terbium price has exceeded 3,000 US dollars/kg, a premium of 317% . This price difference has forced the increase in domestic export costs and further promoted the rise of domestic strong magnet prices.

4. Future Price Trend Forecast of Strong Magnets (2026-2032)

Looking forward to the period from 2026 to 2032, the price of strong magnets is expected to show a long-term upward trend with short-term fluctuations, driven by factors such as the continuous release of downstream demand, the tightening of upstream supply, and the improvement of industry concentration. However, it will also be affected by variables such as technological breakthroughs, policy adjustments, and macroeconomic fluctuations, and there may be periodic adjustment risks.

In the short term (2026-2028), the price of strong magnets is expected to maintain an upward trend. The supply side will continue to be tight: China's rare earth mining quota growth is expected to remain at a low level, and export controls on heavy rare earths will not be relaxed in the short term. The instability of imported ore sources will continue to exist, and the supply capacity of the strong magnet market will be limited. The demand side will maintain a high growth rate: the global new energy vehicle market will continue to expand, the mass production of humanoid robots will gradually advance, and the demand for strong magnets in emerging fields such as low-altitude economy and medical nuclear magnetic resonance will continue to release. The supply-demand gap will further expand, and the cost pressure brought by the rise of rare earth raw materials will continue to be transmitted to the downstream. It is expected that the price of NdFeB magnets will break through 500,000 yuan/ton in 2026, and the price center will continue to move up . At the same time, the price difference between high-grade and ordinary-grade strong magnets will further widen, and the product structure upgrading will become an important trend in the industry.

In the medium term (2029-2032), the price of strong magnets may enter a stable growth stage. With the gradual release of new production capacity of leading enterprises and the continuous improvement of the rare earth recycling industry, the supply capacity of the market will be moderately improved, and the supply-demand relationship will tend to be balanced. The global rare earth recycling rate is expected to increase from the current 18% to more than 30% , which will alleviate the pressure of resource shortage to a certain extent. However, the long-term growth trend of downstream demand will not change. The global rare earth permanent magnet market size is expected to reach 24.95 billion US dollars by 2031, with a compound annual growth rate of 10.5% . The stable growth of demand will provide strong support for prices. During this period, the price of strong magnets will no longer show a sharp rise, but will maintain a stable growth trend driven by the improvement of product added value and the optimization of the industrial structure.

In the long run, the price trend of strong magnets will be affected by technological breakthroughs and the development of alternative materials. If new permanent magnet materials with lower cost and higher performance are developed and industrialized, it may have a subversive impact on the strong magnet market and restrict the upward space of prices. However, at present, rare earth permanent magnets still have irreplaceable advantages in terms of magnetic performance and cost performance. The development of alternative materials is still in the research and development stage, and it is difficult to achieve large-scale application in the short term . In addition, the strengthening of global environmental protection policies will increase the production costs of strong magnets, which will also become a long-term factor supporting prices.

It should also be noted that there are certain risks in the future price trend of strong magnets. First, the fluctuation of the macroeconomic environment may affect the demand for downstream industries. If there is a global economic recession, the sales of new energy vehicles, wind power equipment and other products may decline, leading to a weakening of demand for strong magnets and a downward pressure on prices. Second, changes in international trade policies may exacerbate market volatility. The trade protectionism policies of some countries may affect the export of Chinese strong magnets and disrupt the global supply chain. Third, the progress of rare earth mining and smelting technology may change the supply pattern. If new mining technologies or alternative ore sources are developed, the supply of rare earths may increase significantly, leading to a decline in raw material prices and thus affecting the price of strong magnets.

Conclusion

The price trend of strong magnets is a comprehensive reflection of the global industrial chain pattern, policy environment, and market supply-demand relationship. In the past five years, it has experienced obvious periodic fluctuations. Driven by factors such as the tight supply of rare earth raw materials, the explosive growth of downstream demand, and the improvement of industry concentration, the price of strong magnets has entered an upward cycle since 2025. Looking forward to the future, in the context of the global energy transition and the rapid development of high-tech industries, the demand for strong magnets will maintain a long-term growth trend, and the price is expected to show a long-term upward trend with short-term fluctuations.

For industry participants, it is necessary to closely track the changes in rare earth raw material prices and policy trends, optimize the supply chain layout, and improve the ability to resist risks through technological innovation and vertical integration. For investors, it is necessary to pay attention to the performance of leading enterprises with technological advantages and scale effects, and at the same time remain vigilant about the impact of macroeconomic fluctuations and policy changes on the market. In general, the strong magnet industry is in a period of high-quality development driven by demand, and its price trend will continue to be closely watched by the global market.