At Apex Magnets, our customers are our main priority. That’s why we’re transparent, update them on important magnet news, and strive to offer fair prices. We believe it is beneficial to both of us.  Currently, the raw materials we use to make magnets, such as neodymium and cobalt, are very volatile. Because of this, our costs have increased over the last few months at a significant rate. That said, we are doing our best to keep pricing fair for you and your end-users. 

Why are Raw Material Prices Increasing?

The prices of raw materials used in Apex Magnets have increased greatly. This increase is largely contributed to increases in technology advancements, the coronavirus pandemic, and the high demand for electric vehicles. 

Technological Advancements

Cobalt is an essential material in samarium cobalt magnets, which is heavily used in the manufacturing of electronics. For instance, cobalt is used in the production of batteries for cell phones and electric cars, and many other technological innovations. In addition, neodymium plays an integral role in developing technologies, such as iPhone speakers. As the world continues to become more and more technologically advanced, the demand for cobalt and neodymium will also increase. According to Trading Economics, the price of neodymium has increased by 18.88% since the start of 2021.

Coronavirus Impact

Due to the coronavirus pandemic, the demand for raw materials fell significantly and the supply chain of raw materials has also been largely disrupted. The decrease in demand led to less production of raw materials as well as mines closing. However, as the market is starting to rebound and demand is growing again for raw materials, there’s limited availability from production halting due to the pandemic. This has largely affected the prices of raw materials that go into producing magnets.

Electric and Hybrid Vehicles

Electric and hybrid cars are becoming increasingly popular due to the shift in consumer sentiment toward clean energy, the desire to reduce emissions, increase use of commercial electric vehicles, etc. Because of COVID-19, many countries are planning to make large investments in electric vehicle charging stations to help with economic recovery, which will impact the production of neodymium. In addition, nearly every hybrid and electric car on the road relies on neodymium magnets to power their motors and batteries. When demand increases for electric vehicles, so will the prices. Click here to learn more about electric vehicles and raw materials.

Apex Magnets 

Since the prices of the raw materials we use to make our magnets are increasing, we want to be upfront and transparent with our customers. Our costs have increased over the last few months at a significant rate, which means that our product prices may increase. We hope that the cost will soon start to drop, and we will keep you posted as we learn more. Because of this, we recommend that before you price your product or provide a quote to your client, contact us for a FREE up-to-date quote. As previously stated, we value you and appreciate your business and we do not want price increases to cause any unexpected surprises. If you have any questions or concerns, please don’t hesitate to contact us — we’re here to help!