Permanent Magnet Manufacturers

Permanent magnets, particularly neodymium-iron-boron (NdFeB) magnets, are indispensable components in electric vehicle traction motors, direct-drive wind turbines, military guidance systems, industrial robotics, and consumer electronics. The manufacturing of these magnets represents one of the most concentrated and strategically sensitive segments of the critical minerals value chain. China dominates global permanent magnet production, accounting for approximately 90 percent of sintered NdFeB magnet output. This concentration, combined with the fact that magnets require processed rare earth metals as inputs, creates a double dependency that has made permanent magnet supply chains a top priority for Western industrial policy.

Chinese Magnet Manufacturers

China's permanent magnet industry is anchored by several large-scale producers that have achieved global dominance through vertical integration, scale economies, and preferential access to domestically processed rare earth metals and alloys. JL MAG Rare-Earth Co., based in Ganzhou, Jiangxi Province, is one of the world's largest NdFeB magnet producers, supplying automotive, wind energy, and industrial customers globally. The company's proximity to southern China's rare earth processing infrastructure gives it cost advantages that Western competitors struggle to match. Zhong Ke San Huan High-Tech, affiliated with the Chinese Academy of Sciences, is another major producer with a focus on high-performance magnets for automotive and electronics applications.

Ningbo Yunsheng, TDG Holding (formerly Tianyuan Group), Beijing Zhong Ke San Huan, and Innuovo Magnetics are among the other significant Chinese producers. Collectively, Chinese magnet manufacturers benefit from a complete domestic supply chain that spans rare earth mining, separation, metals production, alloy manufacturing, and magnet sintering. This vertical integration enables rapid response to customer specifications and competitive pricing that has made it difficult for producers in other countries to gain market share. China has also occasionally restricted rare earth exports, raising the prospect that downstream magnet production could be weaponized as a geopolitical tool.

Japanese Magnet Companies

Japan was the birthplace of NdFeB magnet technology, invented by Masato Sagawa at Sumitomo Special Metals (now part of Proterial, formerly Hitachi Metals) in 1982. Proterial remains a leading producer of high-grade NdFeB magnets, particularly for automotive and precision applications. The company holds foundational patents (now largely expired) and continues to invest in advanced magnet grades that use less dysprosium and terbium, reducing dependence on heavy rare earths where Chinese control is most acute. TDK Corporation, another Japanese electronics giant, produces NdFeB magnets through its subsidiary and supplies major automotive and consumer electronics customers. Shin-Etsu Chemical operates rare earth magnet production through its subsidiary Shin-Etsu Rare Earths, and has invested in upstream rare earth separation capacity in Vietnam to secure raw material supply outside of China.

European and North American Producers

Permanent magnet manufacturing capacity in Europe and North America is limited but growing in response to strategic concerns. Vacuumschmelze (VAC), a German company, produces NdFeB and samarium-cobalt (SmCo) magnets for automotive, aerospace, and industrial applications. VAC was acquired by a Chinese investor in 2018, raising national security concerns in Germany that led to enhanced foreign investment screening for critical technology sectors. Less Common Metals (LCM) in the United Kingdom produces rare earth alloys and magnets, primarily for aerospace and defense applications. In North America, Arnold Magnetic Technologies manufactures SmCo and NdFeB magnets at facilities in the United States, serving defense and aerospace customers.

New entrants are emerging with government support. USA Rare Earth LLC is developing a fully integrated rare earth magnet production facility in Stillwater, Oklahoma, aiming to produce NdFeB magnets from domestic raw materials. MP Materials, which operates the Mountain Pass rare earth mine in California, has announced plans to produce NdFeB magnets at a facility in Fort Worth, Texas, representing the first large-scale magnet manufacturing operation in the United States. Neo Performance Materials, headquartered in Toronto, manufactures rare earth-based magnets and magnetic powders at facilities in China, Thailand, and Germany, and is expanding capacity in Estonia. These initiatives represent the early stages of rebuilding Western permanent magnet manufacturing capability.

Samarium-Cobalt Magnet Producers

While NdFeB magnets dominate the market by volume, samarium-cobalt (SmCo) magnets retain an important niche in applications requiring high-temperature stability, corrosion resistance, and consistent performance in extreme environments. SmCo magnets are widely used in aerospace, defense, and satellite systems. Major producers include Proterial in Japan, Arnold Magnetic Technologies in the United States, and Vacuumschmelze in Germany. The SmCo magnet supply chain depends on both samarium, a rare earth element, and cobalt, creating a dual supply chain dependency. SmCo magnets are typically more expensive than NdFeB magnets but offer superior performance in specific operating conditions, making them irreplaceable in certain defense and space applications.

Strategic Significance and Outlook

The strategic importance of permanent magnets extends beyond their commercial applications. Modern military systems, from precision-guided munitions to fighter jet actuators and submarine propulsion, rely on high-performance rare earth magnets. The concentration of magnet manufacturing in China creates a vulnerability that defense planners in the United States, European Union, and allied nations have identified as a critical national security concern. Government programs including the U.S. Department of Defense Industrial Base Analysis and Sustainment program, the EU Critical Raw Materials Act, and Japan's economic security legislation are channeling funding toward domestic magnet manufacturing capacity. As demand grows for EVs and wind energy, the race to build diversified magnet supply chains outside China is intensifying across both the private sector and government-supported initiatives. For background on the rare earth magnets themselves, see rare earth magnets.