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Fact check: What rare earth minerals are used in magnet production?
Executive Summary
The core rare earth minerals used in commercial permanent magnet production are neodymium (Nd), praseodymium (Pr), dysprosium (Dy), terbium (Tb), samarium (Sm) and, to a lesser extent in some formulations, cerium (Ce) and other lanthanides; these elements appear repeatedly across industry and government reporting as the materials that provide the high magnetic strength and high-temperature performance demanded by EV motors, wind turbines, electronics and defense systems [1] [2] [3] [4]. Recent market and industrial developments through 2025 emphasize rising demand and price volatility for Nd–Pr oxides and accelerating projects to produce Dy and Tb outside China, reflecting strategic efforts to secure both light rare earths for magnetic strength and heavy rare earths for temperature resilience [5] [6] [7] [8].
1. Why neodymium-praseodymium dominate the magnet conversation — and prices are following the metal
Commercial high-performance NdFeB (neodymium-iron-boron) magnets rely primarily on neodymium and praseodymium to deliver magnetic flux and elemental substitution flexibility; industry reporting and price-tracking through 2025 show sharp increases in Nd–Pr prices driven by export controls, supply concentration and electrification demand, with weekly and year-to-date surges cited in September 2025 and strong 2025 YTD gains on praseodymium specifically [5] [9]. Government and energy agencies identifying neodymium and praseodymium as critical inputs for permanent magnets underline their centrality in downstream applications like EV motors and wind turbine generators, and commercial analyses note their placement among the light rare earth elements most consumed in NdFeB production [2] [10]. These sources together indicate market signals and policy moves are elevating Nd–Pr as the single most consequential commodity pair in magnet supply chains [1] [5].
2. Heavy rare earths dysprosium and terbium: essential for heat and longevity in motors
Dysprosium and terbium are repeatedly identified in 2025 reporting as the heavy rare earths added to NdFeB alloys to maintain coercivity and magnetic performance at elevated temperatures, making them vital for EV traction motors and aerospace or defense platforms where heat tolerance matters; industry plant announcements and pilot separations in the U.S. and Australia signal efforts to bring Dy and Tb refining capacity online to reduce reliance on incumbent suppliers [3] [6] [7]. Project updates and corporate releases from mid‑ to late‑2025 report successful production of high‑purity dysprosium oxide and planned terbium output, and commentary frames these moves as strategic because Dy and Tb supply is comparatively tighter and more geopolitically sensitive than bulk Nd–Pr supply [6] [11] [12]. The evidence shows heavy rare earth availability is a choke point for high-temperature magnet applications, prompting industrial investment and policy attention [3].
3. Samarium and alternative magnet chemistries: military needs and diversification
Samarium, used in samarium-cobalt (SmCo) magnets, is highlighted in 2025 analyses as central to certain defense applications due to heat resistance and stability, with reporting pointing to Chinese dominance in samarium production and domestic efforts in the U.S. to expand SmCo magnet manufacturing to meet aerospace and defense requirements [8] [13]. This body of reporting frames samarium-based magnets as less volume-oriented than NdFeB but strategically indispensable where temperature resilience and corrosive-environment performance outweigh cost—conditions common in missiles, fighter jets and specialized industrial equipment [8]. Corporate investment in samarium magnet capacity is portrayed as a policy-aligned industrial response to supply concentration and underscores diversification strategies that pair raw‑material projects with downstream magnet manufacturing [13].
4. Broader lanthanides, cerium and supply-chain context: more than just magnets
Technical lists of the 17 rare earth elements and supply‑chain analyses emphasize that while Nd, Pr, Dy, Tb and Sm are the magnet-critical elements, other lanthanides like cerium and lanthanum feature in broader refining streams and can influence economics and processing decisions; market reports note that rare earth separation, purification and downstream alloying determine which specific oxides reach magnet makers, and policy changes or export controls can ripple across the entire group [14] [15] [4]. Analysts and factsheets from 2018 through 2025 frame rare earths as a basket of interdependent materials where mining, separation and end-use manufacturing are tightly coupled, and shifts in any stage change price signals and investment incentives for both light and heavy rare earths [14] [15].
5. What the different sources agree on — and where interpretations diverge
Across corporate press releases, market trackers and government or industry reports through 2025 there is agreement that neodymium and praseodymium are the backbone of high‑strength magnets and dysprosium/terbium are needed for high‑temperature performance, and that samarium remains important for niche, high‑spec military magnets [1] [2] [6] [8]. Divergence appears mainly in emphasis and framing: market sources focus on price volatility and immediate supply risk for Nd–Pr [5] [9], industrial project updates emphasize new capacity for Dy and Tb as a strategic response [6] [7], while geopolitical analyses stress systemic concentration and the need for downstream manufacturing resilience [4] [15]. The combined record through 2025 shows technical consensus on which elements matter for magnets, paired with differing outlooks on how quickly new production and processing will alter supply dynamics [5] [11] [4].