From powering electric vehicles to creating wind turbines, rare earth magnets are integral to the global economy. Thanks to their magnetic strength and energy-producing capabilities, they are ideal for products that require a high energy-to-weight ratio. This also means that rare earth magnets are important to the global supply chain. These processed minerals can be used all over the world to create revolutionary outputs. Due to these reasons, the rare earth magnet industry is important to the global economy, but it can also pose a risk.  

Overview of Rare Earth Magnets 

Rare earth magnets are strong permanent magnets that contain alloys of rare earth elements. They have strong energy-producing capabilities relative to their weight, which makes them ideal in many industries, including electronics, automobiles, and more. Contrary to its name, rare earth magnets are called “rare” because it is very unlikely to find them in a pure form; however, you can actually find their deposits all over the world. Because of its advantageous properties, wide range of uses, and abundance, the rare earth magnet industry is rapidly growing. According to Global Market Insights, rare earth minerals will monopolize 25% of the minerals produced.

How This Industry Poses a Risk

The rare earth magnet market is important to the global economy, but it can also pose a risk. Countries all over the world are heavily reliant on China for rare earth magnets. China produces more than 80% of global output, which gives them strategic advantages, such as favorable tax regulations and being a cost leader. If the United States and other countries are heavily reliant on China for rare earth magnets, we could experience supply chain disruptions that could create bottlenecks in advancing technology. With market forecasts predicting a demand increase within the next decade, reducing reliance is important to the global economy. To combat this problem, the United States is currently building infrastructure to establish independence.  

Rare Earth Magnets Could Promote Economic Growth 

Within the last decade, we’ve seen many initiatives toward clean, green, and low-carbon energy, as well as a global shift toward electric vehicles and automation. These initiatives would not be possible without rare earth magnets, which is why rare earth magnets are heavily used now and will continue to be used in the future. Looking closely at types of rare earth magnets, neodymium and samarium cobalt magnets have and will continue to be key components to many revolutionary and upcoming industries, including:  Neodymium Magnets  Samarium Cobalt Magnets
  • Medical devices
  • Pumps
  • Motors
  • Machinery
  • Automation 
  • Aerospace (air compressors, speed sensors, and regulators and pumps)
Because of these revolutionary and upcoming industries, the rare earth industry is expected to grow. According to Markets and Markets, the market will grow from 5.3 billion USD in 2021 to 9.6 billion USD in 2026, at a CAGR of 12.3%. Overall, due to the diverse uses of permanent magnets, market predictions, and pressure to build infrastructure domestically, the rare earth market could promote economic growth.

Contact Apex Magnets 

At Apex Magnets, we sell a variety of permanent magnets, including neodymium and samarium cobalt, in many shapes, sizes, and configurations that are ideal for various applications. We also offer custom magnets to best fit your magnet needs. Simply fill out our custom magnet request form, and we’ll review your RFQ within 1-2 business days for FREE. There’s no obligation to purchase.  As always, if you have any questions about our magnets or custom magnets, don’t hesitate to contact us at 1.304.257.1193.