Magnet Rare Earths: Neodymium, Praseodymium, Dysprosium and Terbium
Magnet rare earths are the four elements that make NdFeB permanent magnets work: neodymium and praseodymium for strength, dysprosium and terbium for heat resistance. They account for most of the value of rare earth production, drive the revenue of most rare earth companies, and are the main reason governments now treat rare earths as strategic.
| Element | Role in magnets | Main sources | China export status |
|---|---|---|---|
| Neodymium (Nd) | Main rare earth in NdFeB magnets; provides magnetic strength | Bastnaesite and monazite ores; Bayan Obo, Mountain Pass and Mt Weld are major deposits | No element-specific export licence |
| Praseodymium (Pr) | Substitutes for part of the neodymium; sold together as NdPr | Bastnaesite and monazite ores, co-produced with neodymium | No element-specific export licence |
| Dysprosium (Dy) | Small additions keep magnets strong at high temperatures | Ionic adsorption clays in southern China and Myanmar; xenotime and other heavy rare earth ores | Export licence required (since April 2025) |
| Terbium (Tb) | Does the same job as dysprosium at lower loadings, at a higher price | Ionic adsorption clays in southern China and Myanmar; small amounts from other ores | Export licence required (since April 2025) |
Magnet Rare Earth Prices
Annual averages, not spot prices. The dashed segment and hollow marker show the USGS estimate for the latest year. Source: USGS Mineral Commodity Summaries 2026 and 2025, Rare Earths.
Praseodymium trades mostly with neodymium as NdPr oxide, so its price tracks neodymium. Full price history and the data table are on the price charts page.
Where Magnet Rare Earth Demand Comes From
- Electric vehicles. Most EV traction motors use NdFeB magnets.
- Wind turbines. Direct-drive and some geared turbines use large permanent magnet generators.
- Industrial motors, robotics and electronics. Efficient motors, drones, robots, speakers and hard drives use NdFeB magnets.
- Defense. Guidance systems, actuators and other defense equipment rely on rare earth magnets.
How to Get Exposure
Investors usually get magnet rare earth exposure through NdPr producers such as MP Materials and Lynas, heavy rare earth separators such as Lynas and Energy Fuels, magnet makers, or a rare earth ETF. Each element page lists the companies with exposure to that element.
Magnet Rare Earths FAQ
What are the magnet rare earths?
The magnet rare earths are neodymium, praseodymium, dysprosium and terbium. Neodymium and praseodymium provide the strength of NdFeB permanent magnets, and dysprosium and terbium keep them working at high temperatures.
Why are magnet rare earths the focus for investors?
Magnet rare earths are the focus for investors because they account for most of the value of rare earth production and are needed for EV motors, wind turbines and defense systems. Their supply is concentrated in China, which has made them a policy priority for Western governments.
How much rare earth is in an electric vehicle?
A typical electric vehicle with a permanent magnet motor contains around one to two kilograms of NdFeB magnets, of which roughly a third is rare earths by weight. The exact amount varies by motor design.