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| rare earth magnets |
Clean Tech Growth Drives Rare Earth Magnets Demand
Demand for rare earth magnets is accelerating as electric vehicles (EVs) and wind power scale up globally. These magnets, critical for drivetrain motors and turbine generators, support core technologies for decarbonization. Currently, EVs and wind turbines account for only 17% of global magnet consumption. However, this share could rise to 42% by 2030 to meet Net Zero 2050 targets. The rare earth magnets demand trend signals major shifts in both raw material sourcing and supply chain strategies.
Neodymium and Dysprosium Dominate Supply Risk Discussions
Four rare earth elements—neodymium, praseodymium, dysprosium, and terbium—form the foundation of high-performance magnets. Among them, neodymium and dysprosium carry the highest criticality due to limited production centers and rising geopolitical risk. As a result, analysts warn that supply security remains a major challenge, particularly for Western OEMs. In contrast, China currently controls more than 80% of global processing capacity. Therefore, industry stakeholders are ramping up efforts to diversify rare earth supply chains and invest in recycling technologies.
EVs to Surpass Wind as Primary Demand Driver by 2030
Electric vehicles will soon become the dominant end-use sector for rare earth magnets. By 2030, EV-related demand is expected to account for 22% of global magnet consumption, overtaking wind power. This shift in demand calls for coordinated investments in mining, refining, and component manufacturing. At the same time, clean energy goals will increase pressure on rare earth supply, pricing, and environmental compliance.
ScrapInsight Commentary
Rare earth magnets play a pivotal role in clean energy transitions. With EVs set to outpace wind in demand growth, supply diversification and circular economy strategies—especially rare earth recycling—will become critical for market resilience and price stability through 2030 and beyond.
