If you've sourced Samarium Cobalt (SmCo) magnets recently, you may have noticed longer lead times or received a price quote that is, frankly, much higher than before. Two separate raw material markets that feed directly into Samarium Cobalt production are undergoing significant change simultaneously, and it's worth understanding why so you can plan your own purchasing and production schedules accordingly.

Two Raw Materials, Two Different Pressures

Samarium Cobalt magnets are made primarily from samarium (a rare earth element) and cobalt. Both materials are currently under pressure, but for different reasons.

Samarium and rare earth export licensing 

Since spring 2025, China has tightened export controls on several medium and heavy-rare-earth elements, including samarium and related alloys. Shipments now require a non-automatic export license, which means every export application is reviewed individually rather than approved as a matter of course. In practice, this has meant review periods stretching well beyond what exporters and buyers are used to, with no fixed timeline for approval. The intent behind the policy is framed around national security and resource conservation, but the practical effect on the global magnet supply chain has been additional documentation, longer waits, and reduced predictability — even when the raw material itself is technically available.

Cobalt and export quotas from the Democratic Republic of Congo

Cobalt is the other major input in Samarium Cobalt alloy, typically making up around a third of the material by weight. The Democratic Republic of Congo produces roughly 70% of the world's cobalt supply, and in early 2025, it suspended cobalt exports entirely in an effort to support prices that had fallen to multi-year lows. That export ban has since been replaced with an annual quota system — a defined, government-managed volume of cobalt allowed to leave the country each year. The result has been a sharp price recovery: cobalt has more than doubled since early 2025. Because the quota system is still relatively new, shipment timing and volumes can vary, which adds an extra layer of planning complexity for buyers further down the supply chain.

What This Means for the Market

To be clear, this isn't a story about Samarium Cobalt magnets disappearing from the market. Samarium Cobalt remains available, and the supply chain — while more complex than it used to be — is functioning. What has changed is the predictability of both pricing and lead times. Buyers who treat Samarium Cobalt sourcing the way they might have a few years ago — as a simple catalog order with minimal lead time — are more likely to be caught off guard. Buyers who build a little more runway into their planning are generally finding that suppliers can still meet their needs reliably.

Given that cobalt and samarium both feed directly into the cost of Samarium Cobalt, it's reasonable to expect industry-wide pricing to continue reflecting these upstream pressures for the foreseeable future. We'd rather you hear that from us now, in a measured way, than be surprised by it later.

How Apex Magnets Is Approaching This

A few things are worth knowing about how we manage these market shifts:

  • Long-term supplier relationships matter more than ever right now. We've built relationships with our material and magnet suppliers over the years, and that history gives us better visibility into allocation, pricing, and timing than a buyer entering the market cold. When conditions tighten, established relationships are often the difference between a delayed order and a fulfilled one.
  • We absorb cost increases where we can. Our goal is never to pass along every fluctuation in raw material pricing immediately or in full. We monitor the market closely and adjust pricing only when necessary to maintain a sustainable, reliable supply for our customers.
  • We're watching this closely. Our team is tracking the rare earth licensing situation and cobalt quota developments on an ongoing basis, so we can provide accurate, up-to-date information rather than guesswork.

How to Plan on Your End

A few practical steps can help your business stay ahead of these market dynamics:

  1. Build in extra lead time for SmCo orders, particularly for larger volumes or custom specifications.
  2. Talk to us early about upcoming projects so we can flag any potential timing or pricing considerations before they become urgent.
  3. Consider forecasting future needs further out than usual, especially for recurring or production-line orders, so we can plan procurement around your timeline rather than reacting to it.
  4. Ask about alternatives if your application has flexibility — in some cases, a different magnet material may meet your performance needs with fewer supply chain pressures attached.

Market conditions like these are exactly why we believe in transparent communication with our customers. We'd rather give you the full picture now than have you find out the hard way.

Need help choosing a magnet? Browse our magnet collection or reach out to our team anytime.

 

Safety Warning: Children should not be allowed to play with neodymium magnets, as they can be dangerous. Small magnets pose a choking hazard and should never be swallowed or inserted into any part of the body. 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, and bones can be broken by larger magnets. Visit our Magnet Safety page to learn more.