NdFeB Magnets and the Heavy Rare Earth Bottleneck: Demand, Supply, and China's Grip

NdFeB permanent magnets consume roughly 90% of rare earth demand by value, with neodymium-praseodymium and the heavy rare earths dysprosium and terbium acting as the binding constraints on magnet performance at high temperatures. EV traction motors, direct-drive wind turbines, and the servo motors in industrial and humanoid robotics drive the fastest-growing share of magnet demand, while hard drives and consumer-electronics actuators form a large, slower-growing base. China mines over 60% of rare earths, refines over 80%, and makes roughly 90% of sintered NdFeB magnets; the April 2025 licensing controls on heavy rare earths and finished magnets more than tripled dysprosium prices outside China within months. The report quantifies demand by application through 2030 and evaluates grain-boundary diffusion and substitution as mitigation.