Rare Earth Magnet Value Chain: Who Makes NdFeB Magnets
The rare earth magnet value chain turns separated oxides into the NdFeB magnets inside EV motors, wind turbines and electronics. China dominates every stage, with around 90% of magnet production according to the IEA, but plants in the US, Europe and Japan are expanding. For how the magnets themselves work, see NdFeB magnets explained.
| Stage | Products | Main producers |
|---|---|---|
| Separated oxide | NdPr oxide, dysprosium and terbium oxide | Lynas, MP Materials, Chinese separators |
| Metal and alloy | NdPr metal; NdFeB and DyFe alloys | Mostly China; MP Materials, Neo (Thailand), Korean Metals Plant |
| Magnet | Sintered or bonded NdFeB magnets | Mostly China; Japanese makers; Neo (Estonia), VAC, MP Materials, USA Rare Earth |
| Motor or generator | EV traction motors, wind generators, industrial motors | Carmakers, motor suppliers, turbine makers |
Bottlenecks Outside China
- Metal and alloy making is the thinnest link: a magnet plant outside China may still depend on Chinese metal.
- Heavy rare earths for high-temperature grades come mainly from China and Myanmar, with Lynas the main non-China source.
- Customer qualification for automotive and defense magnets takes time, so new plants ramp up slowly.
- Cost. Non-China magnets have generally cost more, which is why government offtakes and price floors matter.
New Magnet Capacity Outside China
MP Materials makes magnets in Fort Worth, Texas and is building a larger plant backed by the US Department of Defense. Neo Performance Materials began commercial production in Narva, Estonia in 2026. VAC operates a plant in South Carolina supplying General Motors, and USA Rare Earth commissioned its first line in Stillwater, Oklahoma in 2026. Listed companies are compared on the magnet stocks page.
Magnet Value Chain FAQ
Who makes rare earth magnets?
China makes most rare earth magnets, around 90% according to the IEA. Outside China, Japanese companies such as Shin-Etsu, TDK and Proterial, and newer plants run by Neo Performance Materials, VAC, MP Materials and USA Rare Earth, also make NdFeB magnets.
What is the rare earth magnet value chain?
The rare earth magnet value chain runs from separated oxides, to metals and alloys, to sintered or bonded NdFeB magnets, and finally to motors and generators in vehicles, turbines and machines.
Why is building magnet capacity outside China difficult?
Building magnet capacity outside China is difficult because it needs a non-China supply of metals and alloys, specialist equipment and know-how, and customers willing to qualify a new supplier, which in the automotive industry can take years.