Samarium (Sm): The High-Temperature Magnet REE

Samarium is a light rare earth with dual applications: samarium-cobalt (SmCo) magnets for high-temperature aerospace applications and catalytic applications. While SmCo magnets are technically superior to NdFeB at elevated temperatures, the market is much smaller (niche aerospace focus). Sm demand is moderate and stable but not growth-oriented.

Key Points

Supply & Production

• Global Sm production: ~2,500 tonnes/year
• Co-produced with LREE from bastnaesite mining
• China: 60-70% of separation capacity
• Not supply-constrained like Dy or Tb

SmCo Magnets (60-70% of Sm demand)

• Samarium-cobalt permanent magnets: 2:17 and 2:27 phases
• Operating temperature range: -200 to +300°C (vs. NdFeB: -40 to +150°C)
• Used in aerospace turbine motors, downhole oilfield tools
• Cobalt is expensive; limits market penetration vs. NdFeB

Catalysts (25-35%)

• Sm compounds in catalytic converters and petrochemical cracking
• Steady demand aligned with vehicle and refining cycles

Market Dynamics

• Pricing: Sm oxide ~$5-15/kg (moderate)
• Demand growth: Low (+0-2% annually); mature market
• Cyclicality: Tied to aerospace and vehicle production

Investment Thesis

• Sm is a stable but low-growth REE
• SmCo niche is profitable but small
• Better suited for integrated REE producers bundling multiple elements

Key Takeaways

• Samarium is LREE with niche magnet (SmCo) application
• Supply is adequate; not supply-constrained
• Demand is stable but not growth-oriented
• Invest as bundled exposure within integrated REE producers