60
Nd
Neodymium
Neodymium
Neodymium (Nd), element 60, is a lanthanide rare earth driving the strongest permanent magnets (NdFeB) critical for EV traction motors, wind turbines, and the clean energy transition.
Last reviewed: 2026-02-24
Bottom Line
Neodymium (symbol Nd, atomic number 60) is a lanthanide ('rare earth element') with standard atomic weight 144.242(3) (IUPAC). The dominant industrial use is as a key constituent of Nd–Fe–B (NdFeB) permanent magnets—described as the strongest commercially available permanent magnets in a U.S. government supply-chain assessment.
China share of global NdFeB magnet production
92% (2020)
Global
China share of global rare-earth mining
58% (2020)
Global
China share of separation/refining
~90% (2019)
Global
Historical REE recycling rate (up to 2011)
<1% of REEs recycled
Global
Start here
Choose your reading path
▸Executive Brief
1 min read
Executive Brief
Key Facts
- ▪Neodymium (symbol Nd, atomic number 60) is a lanthanide ('rare earth element') with standard atomic weight 144.242(3) (IUPAC).
- ▪The dominant industrial use is as a key constituent of Nd–Fe–B (NdFeB) permanent magnets—described as the strongest commercially available permanent magnets in a U.S. government supply-chain assessment.
- ▪NdFeB magnets are critical intermediates for electric traction motors (EVs/hybrids) and direct-drive wind-turbine generators, enabling compact and efficient motor/generator designs.
- ▪China accounted for 58% of global rare-earth mining (2020) and 92% of global NdFeB magnet production (2020), per a U.S. DOE supply-chain assessment.
- ▪Separation/refining remained ~90% China-concentrated in 2019 (OECD/IEA data); only four separation plants outside China were identified at that time (Malaysia, France, India, Estonia).
- ▪EU Regulation (EU) 2024/1252 (CRMA) lists 'rare earth elements for permanent magnets (Nd, Pr, Tb, Dy, Gd, Sm, Ce)' as strategic raw materials.
- ▪Up to 2011, less than 1% of rare earth elements were recycled globally (Binnemans et al., 2013).
- ▪China issued export controls on rare-earth items in April 2025 (Announcement No. 18), with some expanded measures later suspended until November 2026.
Interpretation (non-prescriptive)
- ▪The critical chokepoint is not neodymium ore in isolation but the midstream-to-downstream chain (separation → metal/alloy → magnet manufacture), where concentration increases furthest downstream.
- ▪EU CRMA implementation milestones—delegated acts and disclosure obligations for magnet recycled content—will determine reporting requirements and data availability for secondary neodymium.
- ▪US DFARS procurement rules for covered magnets (with a scope expansion from 2027) are a predictable driver of qualification and documentation requirements in defence supply chains.
Signals to Watch
China export-control status (announcements, suspensions, reinstatements)
The midstream/downstream magnet chain is sensitive to licensing scope; changes alter supply friction even without an explicit ban on neodymium itself.
EU delegated acts under CRMA for magnet recycled-content calculation (deadline: May 2026)
These acts determine auditability and comparability of secondary neodymium reporting, shaping compliance overhead and data quality for the EU market.
EU disclosure compliance for permanent magnets (>0.2 kg threshold, from May 2027)
Will create new visibility into secondary neodymium flows at product level—currently one of the least transparent parts of the supply chain.
US DFARS scope expansion for covered NdFeB magnets (from 1 Jan 2027)
Procurement constraints will shift documentation, traceability, and qualification requirements for defence supply chains sourcing from affected regions.
Separation/refining capacity additions outside China
A persistent bottleneck; new or expanded plants in the four documented non-China locations (or elsewhere) can meaningfully reduce geographic concentration risk.
REE recycling rate progress and EU-mandated secondary Nd disclosures
Historically <1% recycled; any measurable increase shifts resilience narratives; EU disclosures will provide the first systematic product-level data.
New NdFeB magnet manufacturing capacity (U.S., EU)
Announced projects in both regions could reduce the 92% China magnet production share; project status and qualification milestones are observable signals.
▸What is Neodymium (Nd)?
2 min read
What is Neodymium (Nd)?
Neodymium (Nd) is the chemical element with atomic number 60. It belongs to the lanthanide series, collectively known as 'rare earth elements'.
For industrial purposes, neodymium is typically handled as chemical forms (oxides, chlorides/fluorides) and alloys rather than as free metal. Extraction from rare-earth-bearing minerals (bastnäsite, monazite, xenotime, ion-adsorption clays) involves beneficiation, chemical cracking, and multi-stage separation via solvent extraction or ion exchange.
The material's strategic importance derives almost entirely from one application: Nd–Fe–B (NdFeB) permanent magnets. These are the strongest commercially available permanent magnets and are indispensable in electric vehicle traction motors, direct-drive wind turbines, and consumer/industrial electronics.
Primary neodymium is produced from mined rare-earth sources; secondary (recycled) neodymium is recovered from post-consumer waste—primarily end-of-life magnets. EU law explicitly requires disclosure of neodymium recycled content in permanent magnets in certain products.
Quick facts
Element name
Neodymium
Chemical symbol
Nd
Atomic number
60
Key industrial forms
Nd oxide (99.5% min. spec.); Nd metal; NdPr alloy/powder; sintered/bonded NdFeB magnets.
Primary production model
Mined from rare-earth deposits (bastnäsite/monazite); separated via solvent extraction or ion exchange; heavily concentrated in China across all supply-chain stages.
Why it is strategic
Enables the strongest permanent magnets (NdFeB) critical for EV traction motors and wind generators; substitution is difficult due to unique magnetic performance and re-qualification barriers.
Selected Properties
Atomic Mass
144.24
Density
7.01 g/cm³
Melting Point
1024°C
Boiling Point
3074°C
Discovered
1885 by Carl Auer von Welsbach
Neodymium (Nd): Permanent Magnetism
Neodymium was separated in 1885 by Austrian chemist Carl Auer von Welsbach from its 'twin', praseodymium. The two elements had been confused together and named didymium, which is why neodymium—'new twin' (neos didymos)—got its name. Its first uses were to tint glass and ceramics delicate colors. Its true revolution came in the 20th century: alloyed with iron and boron, neodymium creates the most powerful permanent magnets in the world (Nd). These magnets are the beating heart of the energy transition, indispensable to electric vehicle motors, direct‑drive wind turbines and the micromotors in our electronic devices.
▸Where Neodymium is Used
2 min read
Where Neodymium is Used
Applications by Sector
Electric Vehicles & Mobility
- ▪NdFeB magnets power electric traction motors in EVs and hybrids—the largest and fastest-growing demand driver.
- ▪High magnetic energy density enables compact, lightweight motors without sacrificing torque or efficiency.
Wind Energy
- ▪Direct-drive wind turbine generators use NdFeB magnets to eliminate the gearbox, improving reliability and reducing maintenance.
- ▪Offshore wind expansion is a key driver of long-run neodymium demand growth.
Electronics & Consumer Devices
- ▪NdFeB magnets in hard drives, speakers, headphones, microphones, and small motors across consumer and industrial electronics.
- ▪Miniaturisation advantage: high magnet strength enables smaller, lighter components at equivalent performance.
Optics & Lasers
- ▪Neodymium-doped laser media (Nd:YAG, Nd-glass) are used in industrial cutting, medical procedures, and scientific research.
- ▪Nd³⁺ provides laser-active transitions at ~1064 nm in Nd:YAG—a widely used solid-state laser wavelength.
Specialty Glass & Catalysts
- ▪Neodymium compounds produce purple/violet hues in specialty glasses (didymium glass for glassblowing filters; optical filters).
- ▪Neodymium oxide and nitrate are used as catalysts in certain polymerisation reactions (scope and industrial scale vary).
Use, Why It Matters, and Constraints
Use
NdFeB permanent magnets (EV traction motors, direct-drive wind turbines)
Why it matters
Enables compact, high-performance motors and generators at the heart of electrification—no commercially viable substitute delivers equivalent energy density at scale.
Constraint
Magnet production is 92% concentrated in China (2020, DOE); production-method qualification creates switching friction; substitution constrained by performance trade-offs.
Use
Consumer & industrial electronics (hard drives, speakers, actuators)
Why it matters
NdFeB magnets enable miniaturisation and high torque density in devices where size and weight are critical design constraints.
Constraint
Supply exposed to same geographic concentration as magnet manufacturing; purity/composition control requirements for high-performance devices.
Use
Nd:YAG and Nd-doped laser media
Why it matters
Nd³⁺ provides laser-active transitions enabling industrial cutting, medical treatments (ophthalmology, dermatology), and scientific instrumentation.
Constraint
Optical-grade applications require tight impurity control; specific purity thresholds vary by manufacturer and application.
Use
Specialty glass and optical filters (didymium glass)
Why it matters
Provides characteristic purple/violet coloration and selective absorption for industrial glassblowing eye protection and precision optical filters.
Constraint
Niche application; less supply-sensitive than magnet uses but dependent on chemical-grade neodymium compounds.
Common Applications (Examples)
▪NdFeB permanent magnets (EV traction motors)
▪Direct-drive wind turbine generators
▪Consumer electronics (hard drives, speakers, headphones)
▪Industrial robotics and servo motors
▪Nd:YAG solid-state lasers (industrial/medical)
▪Specialty optical glass and filters
▸Neodymium Supply Chain
3 min read
Neodymium Supply Chain
NdFeB magnet pathway overview: concentration increases at each downstream stage—from 58% (mining) to ~90% (separation) to 92% (magnet production) in China. Secondary neodymium from end-of-life magnets remains a nascent but policy-targeted stream.
Processing Stages
01
Ore sources & minerals
- ▪Neodymium is extracted from rare-earth-bearing minerals: bastnäsite, monazite, xenotime, loparite, and ion-adsorption clays.
- ▪In the U.S., bastnäsite is mined at Mountain Pass (California); monazite is produced from heavy-mineral sands (USGS).
- ▪Secondary feedstocks include end-of-life magnets and manufacturing scrap.
02
Mining & beneficiation
- ▪Ore is processed into a mixed rare-earth concentrate. Some deposits (e.g., monazite) contain thorium and uranium, requiring radioactive-element removal.
- ▪Chemical 'cracking' of concentrate involves high-temperature concentrated acids to liberate rare earths.
03
Separation & refining
- ▪Individual rare earths are isolated by multi-stage solvent extraction or ion exchange, producing separated oxides (e.g., Nd oxide) and refined metals.
- ▪China held ~90% of global separation/refining capacity in 2019. Only four plants operating outside China at that time: Malaysia, France, India, Estonia.
04
Alloy & magnet manufacturing
- ▪Nd oxide or metal is alloyed with iron and boron (plus small additions of Dy/Tb for high-temperature grades) to produce NdFeB alloy powder.
- ▪Sintered or bonded magnets are manufactured from this powder; China produces 92% of global output (2020, DOE).
05
End-use integration
- ▪NdFeB magnets are integrated into rotors/stators of EV motors, direct-drive wind generators, and a wide range of electronic devices.
- ▪Other Nd products (oxides, metals, glass dopants) go into lasers, specialty glass, and catalysts.
Market Snapshot
Primary Supply
China accounts for 58% of global rare-earth mining (2020) and 92% of global NdFeB magnet production (2020), per U.S. DOE supply-chain assessment.
Demand Trend
Driven by NdFeB magnets for EV traction motors and direct-drive wind turbines. DOE identifies substitution as 'difficult throughout the supply chain' due to unique rare-earth magnet performance.
Reserves
Geographic concentration increases downstream: ~90% of separation/refining in China (2019, OECD/IEA). Only four separation plants outside China identified at that time.
Structural Constraints
- ▪Multi-stage chemical separation is complex, hazardous, and historically concentrated in a small number of hubs.
- ▪Co-production of rare earths from shared ore bodies means individual element supply depends on overall rare-earth mining dynamics.
- ▪Radioactive by-product handling (thorium/uranium in monazite) adds permitting complexity and waste-management costs.
- ▪Geographic concentration intensifies downstream: mining (58% China) → separation (~90%) → magnets (92%).
Bottlenecks and Effects
Bottleneck
Magnet manufacturing concentrated (China 92%, 2020)
Effect
Downstream supply interruptions propagate rapidly into EV motors, wind generators, and electronics value chains.
Notes
DOE 2022 supply-chain assessment; new magnet capacity planned in U.S. and EU but projects and timelines require confirmation.
Bottleneck
Separation/refining concentrated (~90% China, 2019)
Effect
High exposure to regulatory, operational, or logistics disruptions at a small number of hubs.
Notes
OECD/IEA data; only four non-China separation plants identified in 2019 (Malaysia, France, India, Estonia).
Bottleneck
Environmental and radioactive by-product handling (monazite deposits)
Effect
Permitting complexity, waste treatment costs, and potential project delays outside established processing hubs.
Notes
USGS notes thorium from monazite may be disposed as low-level radioactive waste or stored.
Bottleneck
Low end-of-life recycling rate for REEs (<1% historically)
Effect
Secondary neodymium remains a negligible supply stream; limited buffer against primary supply disruptions.
Notes
Binnemans et al. (2013); EU CRMA disclosure rules aim to improve data availability for secondary streams.
Bottleneck
Re-qualification burden when changing magnet production method
Effect
Switching suppliers or production routes can be slow and costly, limiting supply-chain flexibility.
Notes
U.S. Section 232 investigation record; typical qualification duration not stated, labelled 'to confirm'.
Grades, Purity, and Qualification
Primary vs secondary (recycled) neodymium
- ▪Primary neodymium: produced from mined rare-earth sources (ore → concentrate → separation/refining → Nd oxide/metal/alloy). Industrial statistics reference 'neodymium oxide (99.5% minimum)' as a standard market specification (USGS).
- ▪Secondary neodymium: recovered from post-consumer waste, primarily end-of-life permanent magnets. EU Regulation (EU) 2024/1252 uses this concept explicitly and mandates disclosure of recycled content in permanent magnets in covered products.
Purity grades (nines notation vs TREM-basis)
- ▪'Nines' notation: 4N = 99.99% purity (~100 ppm impurities); 5N = 99.999% (~10 ppm). Relevant for high-purity Nd used in optical media and certain electronics (Ames Laboratory definition).
- ▪TREM/TREO-basis purity: rare-earth purities can be reported on a Total Rare Earth Metal basis, which does not specify absolute purity vs all elements—oxygen and other impurities can be material (Ames Laboratory caution).
- ▪Magnet-grade Nd feedstock: typically tracked with explicit minimum purity descriptors (e.g., 99.5% minimum oxide) rather than nines notation; performance depends on composition control, not just headline purity.
Qualification and substitution constraints
- ▪End-users may qualify magnets based on the technology used to produce them; alternative production routes can trigger costly and time-consuming requalification (noted in U.S. Section 232 investigation record).
- ▪DOE supply-chain assessment states substitution is 'difficult throughout the supply chain due to the unique characteristics and technical advantages of rare-earth magnets.'
- ▪Alternative motor topologies (induction motors, switched-reluctance) can reduce Nd content but typically trade performance, efficiency, or system design constraints.
This section provides institutional framing based on cited sources. Exact grade/impurity thresholds are application- and manufacturer-specific. Qualification timelines cited in government records use language such as 'to confirm'; consult primary specifications for precise thresholds.
▸Key Policy Events
2 min read
Key Policy Events
Factual timeline of regulatory and policy developments
Feb 2021
EO 14017: DOE magnet supply-chain review launched
U.S. Executive Order 14017 prompts DOE to conduct a supply-chain deep-dive assessment on NdFeB permanent magnets, framing neodymium as a strategic concern.
U.S. Department of Energy
21 Sep 2021
U.S. Section 232 investigation initiated on NdFeB magnet imports
U.S. Department of Commerce initiates a Section 232 national security investigation into the effect of NdFeB magnet imports, documenting supply concentration and qualification constraints.
U.S. Department of Commerce / Bureau of Industry and Security
30 May 2024
DFARS final rule: restriction on certain magnets (incl. NdFeB)
DoD finalises rules restricting procurement of NdFeB magnets from specified 'covered nations'; DFARS clause 252.225-7052 defines a two-phase scope: through 2026-12-31 (melted/produced), expanding from 2027-01-01 to 'mined, refined, separated, melted, or produced'.
Federal Register / acquisition.gov
11 Apr 2024
EU CRMA (Regulation (EU) 2024/1252) adopted
EU Critical Raw Materials Act designates rare earth elements for permanent magnets (Nd, Pr, Tb, Dy, Gd, Sm, Ce) as strategic raw materials; establishes a framework for recycled-content disclosure and potential minimum recycled-content requirements.
EUR-Lex
4 Apr 2025
China Announcement No. 18: export controls on listed REE items
MOFCOM/GAC add export controls on specified rare-earth metals, oxides, compounds, permanent magnet materials (incl. NdFeB magnets containing Dy/Tb), and rare-earth targets.
Ministry of Commerce of the People's Republic of China
9 Oct 2025
China Announcement No. 61: extraterritorial controls with 0.1% value ratio
Introduces export-control requirements for rare-earth items produced outside China if they incorporate China-origin controlled inputs above a 0.1% value ratio; includes scrutiny for advanced semiconductor end-uses (≤14 nm logic, ≥256-layer memory).
Ministry of Commerce of the People's Republic of China
7 Nov 2025
China Announcement No. 70: suspension of October second-wave controls
Suspends implementation of multiple 2025 announcements (including Announcements 57 and 61/62) until 10 November 2026; April 2025 controls (Announcement 18) remain referenced as in effect.
Ministry of Commerce of the People's Republic of China
24 May 2026 (deadline)
EU CRMA: delegated act on magnet recycled-content calculation
European Commission deadline to adopt a delegated act establishing rules for calculation/verification of neodymium (and other listed elements) recovered from post-consumer waste in permanent magnets.
EUR-Lex
24 May 2027 (deadline)
EU CRMA: disclosure obligation for permanent magnets > 0.2 kg
Covered products with permanent magnets above 0.2 kg total weight must publicly disclose the share of neodymium recovered from post-consumer waste. Reporting must be made available on a free-access website.
EUR-Lex
31 Dec 2031 (latest)
EU CRMA: potential minimum recycled-content acts
By this date at the latest, the Commission may adopt delegated acts establishing minimum shares of listed rare earths (including neodymium) recovered from post-consumer waste in permanent magnets.
EUR-Lex
▸Reference Data
Deep dive
Reference Data
Full indicator tables, methodology notes, and sources
Key Indicators (Full Table)
China share of global NdFeB magnet production
92% (2020)
Global
China share of global rare-earth mining
58% (2020)
Global
China share of separation/refining
~90% (2019)
Global
Historical REE recycling rate (up to 2011)
<1% of REEs recycled
Global
Non-China separation plants (as of 2019)
4 plants (Malaysia, France, India, Estonia)
Global (ex-China)
DFARS scope expansion for covered NdFeB magnets
From 2027-01-01: extends to 'mined, refined, separated, melted, or produced'
United States (defence procurement)
EU disclosure obligation threshold (permanent magnets)
>0.2 kg magnet total weight per product; recycled Nd share to be made public from 2027-05-24
European Union
Notes: figures are quoted as reported by the cited sources; definitions (e.g. "net import reliance") can vary by methodology.
Frequently Asked Questions
▸What is neodymium and why is it called a 'rare earth'?
Neodymium is element Nd (atomic number 60) in the lanthanide series. 'Rare earth elements' commonly refers to the 15 lanthanides plus scandium and yttrium—a grouping based on chemical similarity rather than actual scarcity in the Earth's crust.
▸What is the single most important industrial use of neodymium?
Strong permanent magnets made from Nd–Fe–B alloys (NdFeB) are the dominant use. These are the strongest commercially available permanent magnets and are indispensable in EV traction motors, direct-drive wind turbines, and a wide range of electronic devices.
▸Why are magnets a supply-chain chokepoint rather than the ore?
Downstream stages are more geographically concentrated than mining. A U.S. DOE assessment reports China's share rises from 58% of rare-earth mining (2020) to 92% of global NdFeB magnet production (2020)—the chokepoint is in processing, not extraction.
▸What does '4N' or '5N' purity mean for neodymium?
Per Ames Laboratory, '4N' means 99.99% purity (approximately 100 ppm impurities) and '5N' means 99.999% (approximately 10 ppm). Declared purity depends on which impurities were actually tested; rare-earth purities may also be reported on a TREM (Total Rare Earth Metal) basis, which is not the same as absolute purity.
▸What is 'secondary neodymium'?
Neodymium recovered from post-consumer waste—primarily end-of-life permanent magnets embedded in products and vehicles. EU Regulation (EU) 2024/1252 explicitly requires disclosure of recycled neodymium content in permanent magnets in certain products.
▸Are rare earths recycled at scale today?
Historically, fewer than 1% of rare earth elements were recycled globally (up to 2011, per Binnemans et al.). Collection and technical barriers remain significant. EU CRMA disclosure rules are intended to improve data visibility and eventually mandate minimum recycled-content shares.
▸How does regulation treat neodymium in permanent magnets?
EU CRMA (2024) designates rare earths for permanent magnets as strategic raw materials and mandates recycled-content disclosure for covered products. China's export-control regime targets NdFeB magnets containing Dy/Tb and rare-earth compounds (April 2025 controls remain in effect; October 2025 expanded controls are suspended until November 2026). U.S. DFARS restricts defence procurement of covered magnets from specified nations, with scope expanding from January 2027.
▸Can neodymium in EV motors be substituted?
Substitution is difficult. DOE states it is 'difficult throughout the supply chain due to the unique characteristics and technical advantages of rare-earth magnets.' Alternative motor topologies (induction, switched-reluctance) can reduce neodymium content but typically trade performance, efficiency, or system-design constraints. Ferrite and SmCo magnets offer lower performance alternatives.
Sources
[DOE-2022]Rare Earth Permanent Magnets: Supply Chain Deep Dive Assessment (Feb 2022) — U.S. Department of Energy
[BIS-232]Section 232 Investigation Record: NdFeB Magnets – Report Appendices — U.S. Department of Commerce / Bureau of Industry and Security
[MOFCOM-18]MOFCOM/GAC Announcement No. 18 (4 Apr 2025) – REE export controls — Ministry of Commerce of the People's Republic of China
[MOFCOM-61]MOFCOM/GAC Announcement No. 61 (9 Oct 2025) – Extraterritorial controls — Ministry of Commerce of the People's Republic of China
[MOFCOM-70]MOFCOM/GAC Announcement No. 70 (7 Nov 2025) – Suspension of October controls — Ministry of Commerce of the People's Republic of China
[DFARS-2024]DFARS 252.225-7052: Restriction on Acquisition of Certain Magnets, Tantalum, and Tungsten — Federal Register / acquisition.gov
[BINNEMANS-2013]Recycling of rare earths: a critical review — Journal of Cleaner Production
Widely cited statement that <1% of REEs were recycled up to 2011.
[AMES-LAB]Materials Preparation Center FAQ: purity 'nines' and rare-earth purity reporting — Ames Laboratory (U.S. DOE National Laboratory)
[HK-TID-61]HK TID Trade Circular: MOFCOM Announcement 61 with item list attachments — Trade and Industry Department, Hong Kong
Need a Neodymium briefing?
We support procurement, compliance, and strategy teams with fact-based market intelligence. Not investment advice.