U.S. Neodymium Market Size, Share & COVID-19 Impact Analysis, By Application (Magnets, Catalysts, Ceramics & Glass, and Others), and Country Forecast, 2023-2030

The U.S. neodymium market size was worth USD 453.4 million in 2022 and is projected to grow at a CAGR of 4.9% during the forecast period.

Neodymium, also known as NdFeb, is the silvery-rarest metal on earth. The processes, including bonded and sintered are utilized for the mining of this metal. Additionally, NdFeb is resistant to extreme temperatures and provides excellent magnetic properties. These characteristics expand its application in the production of permanent magnets. The rapid growth of industries such as automotive and electronics, is expected to augment product adoption. Moreover, rising product adoption across the healthcare industry to reduce swelling and assist rapid healing along with increasing innovations in electric motors is expected to drive market growth during the forecast period.

In March 2020, many countries announced a lockdown that restricted the transportation of finished products and raw materials, and disrupted the supply chain of manufacturers. The COVID-19 pandemic significantly distressed the revenue generation of these companies. Nevertheless, since June 2020, several countries have taken initiatives to bring the economic value chain on track by providing support to the producers and distributors by resuming operations.

U.S. Neodymium Market Trends

Rising Demand from the Electric Vehicle Industry to Create New Market Opportunities

The growing environmental issues in the country are expanding the demand for sustainable solutions, as a result fueling the adoption of Electric Vehicles (EVs). This is expected to surge product demand. NdFeb is considered the finest magnet to be utilized in EV motors as it offers better magnetic characteristics. Also, it is primarily adopted in the manufacturing of Brushless Direct Current (BLDC) motors, which is further utilized in more than 90% of EV cases. Hence, the rising demand for DC motors coupled with increasing innovations in EVs would augment the product demand in the U.S. Moreover, the product applications in electric vehicles are rapidly expanding in powerful magnets that find their adoption in distributor sensors, anti-lock brake system sensors, electric generators, CAM sensors, ignition coils, alternators, pump motors, starters, and power steering motors. Hence, the rising adoption of electric vehicles and increasing technological innovations will drive the U.S. neodymium market growth.

U.S. Neodymium Market Growth Factors

Rising Demand for Neodymium-based Magnets across Various Sectors to Drive Market Growth

Neodymium consumption is growing at a rapid pace owing to the increasing demand from leading industries, such as automotive and electronics. Magnets made from NdFeb are lightweight and compact, and provide a greater magnetic field with higher performance in comparison with traditional-based magnets. Moreover, factors such as changes in routines and the busy work-life of consumers have led to a higher shift toward modern gadgets to improve lifestyle. Moreover, NdFeb magnets are one of the primary magnets having applications in every sector, such as ABS system sensors, electronics, MRI scanners, door catchers, bearings, jewelry, and levitation devices.

Additionally, neodymium magnets are more popular in the application of electric vehicles and wind turbine applications. The rising demand for stronger magnets, which require less mass and provide better results compared with iron-based electromagnets is augmenting its demand. In more than 90% of EV cases, BLDC motors are manufactured with the help of NdFeb magnets. Hence, the rising demand for motors has resulted in the flourishing demand for magnets. Hence, rising magnet production, as well as consumption, will create a positive impact on the market.

RESTRAINING FACTORS

Fluctuating Prices of Neodymium to Hamper Market Growth

Fluctuations in the price of neodymium are expected to hamper the growth of the market over the forecast period. The fluctuating price is owed to factors such as expensive mining activities, supply chain disruption, higher demand from the automotive and electronics industries, and government environmental regulations. As a result, it affects NdFeb pricing. Additionally, major applications of neodymium, including magnetic separators, automobile motors, jewelry, and MRI machines, are available at high prices owing to their high production costs. Also, growth in demand for these products may lead to raw material price increases and supply chain disruptions.

U.S. Neodymium Market Segmentation Analysis

By Application Analysis

Based on application, the market is segmented into magnets, catalysts, ceramics & glass, and others.

The magnets segment accounted for the highest U.S. neodymium market share in 2022 and is expected to dominate the market throughout the forecast period. The growing demand for NdFeb from cars, air conditioners, elevators, and consumer electronics is fueling product adoption. Additionally, one of the prominent applications of neodymium magnets is Hard Disk Drives (HDDs), which are used for fueling the spindle motor. However, the NdFeb quantity utilized in HDD is low (0.2% of total metal content), and the large-scale manufacturing of HDD is estimated to augment the demand for the product. Hence, increasing adoption of HDD from the electronics industry is anticipated to fuel the market growth during the review period.

In the chemical industry, the product finds its adoption as a catalyst for butadiene production, which is further adopted in the manufacturing of shoe soles, tires, adhesives & sealants, and automotive parts. Hence, the rising demand for butadiene will significantly drive the catalyst segment growth.

The ceramic & glass segment is expected to grow at a moderate rate during the forecast period. In the ceramic & glass application, neodymium (III) oxide is used as an additive for solar control glass and for decolorizing ferrous glass. Meanwhile, NdFeb glass is further adapted to produce laser pointers that are used in eye surgery, cosmetic surgery, and the treatment of cancers.

List of Key Companies in U.S. Neodymium Market

In terms of the competitive landscape, the U.S. neodymium market depicts the presence of established and emerging companies. Key players include Lynas Rare Earths Ltd and MP MATERIALS CORP., among others. Industry players compete primarily based on the price and application characteristics of the product. Companies are emphasizing product innovation, social marketing, acquisitions, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• Lynas Rare Earths Ltd (Malaysia


• MP MATERIALS CORP. (U.S.)


• Texas Mineral Resources Corp. (U.S.)

REPORT COVERAGE

The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

Report Scope & Segmentation