Permanent Magnets
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Rare earth permanent magnets are the strongest commercial magnets and the largest global use of rare earths. The two main types are neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo). China makes about 94% of them, according to the Congressional Research Service, and rules due in 2027 will restrict Chinese-origin magnets in US defense contracts and require recycled-content disclosure in the EU. Plans for capacity outside China reached nearly 80,000 tonnes a year for 2030 by January 2026, according to Adamas Intelligence.
nearly 80,000 t
a year of announced ex-China NdFeB magnet capacity targeted for 2030, as of January 2026
Source: Adamas Intelligence
about 40%
of a permanent magnet's cost is rare earths
1 Jan 2027
date from which US defense contractors cannot supply covered magnets with mined, refined or separated stages in China, Russia, Iran or North Korea
Source: 10 U.S.C. 4872
What are the main types of rare earth magnet?
The two commercial families differ in their rare earths and their best use. The table summarises what the sources state.
| Type | Rare earths used | What the sources say | Where to read more |
|---|---|---|---|
| Neodymium-iron-boron (NdFeB) | Neodymium and praseodymium; dysprosium and terbium added for heat resistance | Covered by the US defense procurement rule on Chinese-origin material and by the EU rules on recycled content of permanent magnets | Rare earth magnets, magnet rare earths |
| Samarium-cobalt (SmCo) | Samarium with cobalt | Used in high-temperature environments such as aerospace, according to Lynas, which began producing samarium oxide in March 2026; covered by the same US defense rule as NdFeB | Magnet rare earths, aerospace and defense |
Sources: Lynas quarterly report to 31 March 2026, 10 U.S.C. 4872 and the pages linked.
Which dates matter for magnets in 2026-2027?
| Date | Event | Source |
|---|---|---|
| April 2025 | China begins licensing exports of samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium | USGS |
| December 2025 | MP Materials begins making NdFeB magnets at its Independence plant in Texas | MP Materials |
| September 2026 | Neo Performance Materials begins commercial magnet shipments from its Estonian plant | Fastmarkets |
| 10 November 2026 | Suspension of China's October 2025 rare earth controls expires, unless extended | Global Trade Alert |
| 1 January 2027 | US defense rule on Chinese-origin magnets, tungsten and tantalum extends to mining, refining and separation | 10 U.S.C. 4872 |
| 24 May 2027 | EU disclosure of recycled rare earth content in products with magnets above 0.2 kg starts (or two years after the delegated act, if later) | Regulation 2024/1252 |
| 31 December 2031 | Deadline for EU minimum recycled-content shares for magnets | Regulation 2024/1252 |
Who makes magnets outside China?
A handful of plants are starting up. Neo Performance Materials began commercial shipments from its Estonian plant on 14 September 2026 with first-phase capacity of about 2,000 tonnes a year, and eVAC opened a plant in Sumter, South Carolina in July 2026 with nameplate capacity of about 2,000 tonnes a year. MP Materials began making magnets in December 2025 and has said its combined US magnet capacity would reach 10,000 tonnes a year with its planned 10X facility. The full list is on the magnet makers page. Adamas Intelligence warns that heavy rare earth supply and metal-making capacity are likely near-term bottlenecks for these plants.
Frequently asked questions
What are rare earth permanent magnets?
Rare earth permanent magnets are the strongest commercial magnets. The two main types are neodymium-iron-boron, which uses neodymium and praseodymium with dysprosium and terbium, and samarium-cobalt, which uses samarium.
Who makes most rare earth magnets?
China makes most rare earth magnets, about 94% according to the Congressional Research Service. Plants outside China include Neo Performance Materials in Estonia, eVAC in South Carolina and MP Materials in Texas.
What is the 2027 rule on Chinese magnets in US defense contracts?
From 1 January 2027, US defense contractors may not supply covered magnets, tungsten and tantalum if any mining, refining or separation stage took place in China, Russia, Iran or North Korea, under 10 U.S.C. 4872, subject to limited exceptions and waivers.
How much of a magnet's cost is rare earths?
Rare earths are about 40% of a permanent magnet's cost according to the IEA, even though they are under 1% of a vehicle's value.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
- Congressional Research Service: Rare Earth Elements and U.S. Supply Chains (IF13171, 12 June 2026)
- Adamas Intelligence: Rare Earth Magnet Market Outlook, top predictions for 2026
- USGS Mineral Commodity Summaries 2026: Rare earths
- 10 U.S.C. 4872: Acquisition of sensitive materials from non-allied foreign nations
- Regulation (EU) 2024/1252, Article 29
- Fastmarkets: Neo begins commercial shipments from Estonia rare earth magnet plant (17 September 2026)
- VACUUMSCHMELZE: eVAC Magnetics opening ceremony in Sumter (16 July 2026)
- Global Mining Review: report on the IEA Global Critical Minerals Outlook 2026
- Lynas Rare Earths: Quarterly report for the period ended 31 March 2026
