top of page


Four-fold increase since 2020; another 10-fold increase expected by 2035

In 2022, Adamas Intelligence data indicates that $3.8 billion worth of magnet rare earth oxides, namely NdPr, Dy and Tb oxides, were consumed globally in NdFeB alloys for energy-transition-related applications, including EV traction motors and wind power generators.

With demand and prices soaring in recent years, the total value of rare earth oxides consumed for the energy transition each year quadrupled between 2020 and 2022. By 2035, with demand and prices expected to continue rising, Adamas projects the value of consumption will increase another 10-fold.


NdPr oxide to benefit most but the rising tide will float all boats

By oxide, NdPr consumption value is expected to see the greatest rise over the forecast period, increasing 11-fold by 2035, underpinned by strong demand growth across all applications, rising prices, and ongoing thrifting of heavy rare earth concentrations in high grade NdFeB magnets and the consequential bolstering of NdPr concentrations.

Conversely, Dy and Tb oxide consumption value is expected to increase at a slightly slower pace, rising 7- to 9-fold over the forecast period as supply scarcity and technical innovations fuel an incremental reduction in Dy and Tb use per unit of magnet.



Rare earth supply is dominated by Chinese producers which accounted for approximately 84% of global supply in 2022. Total dependence on Chinese domestic supply has been reducing with increased external supply from Malaysia, USA, Russia, Vietnam, and India. Official Chinese rare earth production in 2022 was 161,000 tonnes of total rare earth oxide (TREO), equating to 40,000 tonnes of NdPr oxide with the total global supply at 65,000 tonnes. To meet projected demand in 2032, global supply for NdPr oxide needs to expand by 61,000 tonnes. ​Continued implementation of Chinese Government policy and environmental regulation will restrict future domestic supply. When coupled with projected strong demand for NdPr oxide, China will, ‘under clear policy’, seek additional supply outside the mainland to support their Made in China 2025 strategy. To meet projected demand over the next decade, additional supply is expected to be developed in Australia and North America, and China’s grip on global supply is expected to reduce by 2030.



Rare earths remain critical in various applications with future demand expected to remain strong driven by the clean energy economy through e-mobility and wind power. Global consumption of rare earths reached 164,000 tonnes of TREO in 2022 and is forecast to increase to 231,000 tonnes by 2032. China will continue to dominate global markets, strengthen its supply chain and increase the use of rare earths in e-mobility with expected strong growth for NdPr oxide in Neodymium Iron Boron (NdFeB) magnets used in electric vehicle (EV) traction motors. ​Rare earths used in NdFeB magnets represent the single largest segment by application, accounting for 45%. The use of NdFeB magnets in the automotive, wind turbines and factory automation sectors are the biggest growth applications for NdPr oxide demand. The growth in NdFeB magnets since 2005 is attributed to increased use in the automotive industry, in particular electric drivetrains and electric power steering used in battery, plug-in hybrid and hybrid EVs. Passenger EVs have grown from 450,000 in 2015 to almost 10 million units in 2022 with forecast worldwide expansion of EVs predicted to grow to 34 million in 2030. Global consumption of sintered NdFeB magnets in 2022 was 184,000 tonnes. NdFeB magnet consumption is forecast to grow by 5.8% per annum in the foreseeable future with demand reaching 322,000 tonnes in 2032. Use of NdFeB magnets in EVs is forecast to account for 32% of total demand by 2032.

bottom of page