PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1182384
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1182384
According to Stratistics MRC, the Global Neodymium Market is accounted for $2.42 billion in 2022 and is expected to reach $6.21 billion by 2028 growing at a CAGR of 17.0% during the forecast period. Neodymium, which is one of the raw materials used to produce Neodymium-Iron-Boron (NdFeB), also referred to as NIB magnets, is widely used to make powerful magnets. Cell phones, laptops, wind turbines, toys, motors, audio systems, and medical equipment commonly use these magnets. Neodymium has enabled the electronics industry's ability to miniaturise due to the tremendous power of these magnets. High power lasers made of neodymium-doped yttrium aluminium garnet have a wide range of uses, including the treatment of skin cancer and laser hair removal. Due to neodymium's strong magnetic abilities, MRI scanners can produce precise images of the bone structure without the use of radiation.
According to the U.S. Geological Survey, 80% of rare earth imports in 2019 came from China. 110,000 tonnes of rare earth were produced in Chinese mines in 2020, accounting for more than 55% of all mining output worldwide.
Market Dynamics:
Driver:
Rise in Usage of Neodymium in Permanent Magnets
Hard disks, mobile phones, and the video and audio components of televisions all make extensive use of neodymium magnets. Magnetic separators, filters, and ionisers often use neodymium magnets. Additionally, they work on the development of security systems and on/off switches. To efficiently filter out iron powder in oil, grease filter producers use neodymium magnets in metal separators. They are used for producing magnetic tool belts as well as awnings on cars and machine covers. Additionally, they are used in badges and jewellery clips. They are also utilised in the production of baby strollers, which are attracted to carriers.
Restraint:
Availability of substitutes
The magnet uses lanthanum and cerium instead of dysprosium or neodymium, two less expensive rare-earth metals that lower the amount of neodymium in the magnet. Toyota developed a magnet that has the same heat resistance as older neodymium magnets while using up to 50% less neodymium, and they achieved this by developing new technologies that limit the degradation of coercivity and heat resistance even when neodymium is substituted with lanthanum and cerium.
Opportunity:
Demand for Neodymium in Green Energy Technologies
For energy production, neodymium is widely used. Because of global warming, several countries are striving to meet their energy requirements with green energy sources. Therefore, the use of solar and wind energy has increased. Large-scale wind farms require effective turbines to produce this energy. A unique rare-earth magnet known as neodymium is used in the internal motors of these wind turbines. The use of this rare-earth magnet in wind turbine motors has been made possible by special features that exist in the magnet.
Threat:
Fluctuations in the prices
Due to fluctuations in the price of raw materials, producers must determine whether to absorb additional costs or raise product pricing. Furthermore, the end-user industries have the major effect on the applications' demand. As a result, there are two sources of supply for neodymium metal, which raises the final price that manufacturers demand.
COVID-19 Impact:
The COVID-19 outbreak has spread to several nations worldwide, and the World Health Organization has declared it a public health emergency. The coronavirus disease's effects are already being seen on a global scale, and they will have a major impact on the market for neodymium (Nd). Due to the significant decrease in the supply of neodymium, restaurants have closed, and all indoor gatherings have been prohibited. The COVID-19 pandemic has also resulted in increased panic, stock market volatility, declining business confidence among the public, and uncertainty about the future.
The neodymium oxide segment is expected to be the largest during the forecast period
Due to its high-quality, insoluble, thermally stable neodymium source that is appropriate for ceramic, glass, and optical applications, the neodymium oxide segment seemed to have the largest revenue share during the forecast period. Some of the major uses are dielectrics, glass colouring, tinting, and lasers. As neodymium hydroxide or neodymium nitride is burned in the air, neodymium oxide is produced. Globally, around 7,000 metric tonnes of neodymium oxide are generated annually. There are several different forms of neodymium oxide, including tablets, pellets, bits, sputtering targets, and nanopowder.
The magnets segment is expected to have the highest CAGR during the forecast period
A permanent magnet is produced when neodymium, iron, and boron are combined. Small-size electronics like smartphones, loudspeakers, and computer hard drives, as well as many other consumer and automotive electrical products, have been produced. The neodymium market is anticipated to expand as a result of the rising middle-class populations and the rising demands of an increasing population in this segment.
Region with largest share:
Over the projection period, it is predicted that the expansion of the region's oil and gas industry will increase demand for catalysts in North America. For instance, the U.S. President required additional diesel and gasoline production from the nation's oil refineries. Refineries convert crude oil into refined fuels including jet fuel, diesel, and gasoline.
Region with highest CAGR:
HyProMag GmbH's foundation provides a strong platform for the region's businesses to grow. Europe's largest producer and consumer of rare earth magnets is Germany. Germany is able to supply primary rare earths. By developing local sources of recycled rare earth using the patented HPMS, there is a significant chance to diversify and strengthen the development of a more reliable rare earth supply chain in Europe.
Key players in the market
Some of the key players in Neodymium market include Rainbow Rare Earths Limited, HEFA Rare Earth, China Rare Earth Holdings Limited, Lenntech Water Treatment Solutions, Peak Rare Earths, Texas Mineral Resources Corp., Arafura Resources, Greenland Minerals Ltd., MP Materials, China Minmetals Rare Earth Co. Ltd, Neo Performance Materials Inc, Lynas Rare Earths Ltd, Australian Strategic Materials Ltd, Noah Technologies Corporation and Metall Rare Earth Limited.
Key Developments:
In March 2022, Mkango Resources Ltd. announced that it has successfully produced neodymium and praseodymium enriched rare earth carbonate for the Songwe Hill Rare Earths Project in Malawi from the final stages of hydrometallurgical piloting at ANSTO in Australia.
In December 2021, General Motors (GM) Co. announced its plans to source rare-earth magnets for its future EVs from two new U.S.-based rare-earth material mining companies, including MP Materials Inc. and Vacuumschmelze, under two separate business agreements. As part of the company's agreement with MP Materials Inc., MP Materials will build a neodymium magnet (NdFeB) production facility in Texas by 2023, to supply magnets for up to 500,000 electric vehicle motors. The financial terms of the agreement were not disclosed by GM.
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Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances