The global magnet industry is entering a new era. As manufacturing demand rises and geopolitical uncertainty continues to reshape trade flows, companies that depend on permanent magnets face a pressing challenge: ensuring a consistent, cost-effective supply of critical materials.

At Apex Magnets, we help businesses navigate the evolving supply chain for neodymium, samarium-cobalt, and other advanced magnetic materials. Here’s what you need to know about where the industry is heading and how to strengthen your sourcing strategy for the years ahead.

The Current State of the Permanent Magnet Supply Chain

Nearly 90% of the world’s rare-earth magnet production still takes place in China, giving it significant control over global pricing and availability. When the country introduced new export controls in 2025, magnet prices surged and lead times expanded across multiple sectors.

Even with new mining projects coming online in North America, Europe, and Australia, experts agree that refining and downstream processing remain the biggest bottlenecks. It can take up to 10 years to bring new capacity to full commercial scale.

That means, for now, businesses must plan for volatility and constrained availability, especially for high-performance grades like NdFeB (neodymium-iron-boron) and SmCo (samarium-cobalt) magnets.

 

Regional Diversification Is Underway

The good news is that global efforts to localize and diversify supply chains are accelerating.

  • North America: Companies like MP Materials and Noveon are developing end-to-end magnet production capabilities in the U.S., supported by Department of Energy funding.

  • Europe: New recycling and magnet-to-magnet manufacturing initiatives are reducing dependence on imported materials.

  • Japan and South Korea: Advanced magnet makers are investing in high-temperature, high-efficiency alloys for EVs and industrial motors.

While these developments are promising, it will take several years before alternative supply chains can meet global demand. In the meantime, businesses can mitigate risk through diversified sourcing partnerships and smart inventory management.

How to Build a More Resilient Supply Chain

As volatility continues, engineering and procurement teams should focus on strategies that balance availability, performance, and cost stability.

Here are a few ways to prepare:

  • Audit your magnet specifications to confirm you’re using the optimal grade and coating, not unnecessarily over-engineering costly materials.

  • Use blanket purchase orders or annual agreements to lock in pricing and secure inventory ahead of demand.

  • Develop contingency plans with suppliers who can pivot to alternate materials or manufacturing methods if global conditions shift.

  • Prioritize technical collaboration with partners who understand magnet properties to adapt designs to available grades without compromising performance.

Apex Magnets: Your Strategic Partner in an Evolving Market

For more than two decades, Apex Magnets has supported manufacturers, engineers, and R&D teams with expert guidance, consistent stock, and fast turnaround. We understand how global pressures—from tariffs to material shortages—affect your operations, and we help you plan ahead with:

  • U.S.-based inventory and fulfillment to reduce shipping uncertainty.

  • Custom magnet design and consultation to match performance requirements.

  • Flexible order options, including blanket purchases and contract supply programs.

  • Responsive, real-person service from a team that knows magnets and the industries that use them.

Our goal is simple: to be the dependable link in your supply chain when the market is anything but predictable. Connect with our B2B team at ApexMagnets.com/B2B to discuss sourcing strategies, custom solutions, or upcoming 2026 supply planning.

 

Magnets can be dangerous. Neodymium magnets, especially, must be handled with care to avoid personal injury and damage to the magnets. Fingers and other body parts can get severely pinched between two attracting magnets. Bones can be broken by larger magnets. 

 

Visit our Magnet Safety page to learn more.