NdFeB magnets—made from neodymium, iron, and boron—are the strongest permanent magnets used in technologies like EV motors, wind turbines, speakers, and hard drives. They are critical for Europe’s green and digital transition.
Why NdFeB Magnets Matter
- Power essential clean-tech and digital technologies
- Contain rare earth elements that are hard to replace
- Demand is rising rapidly across industries
Dominance in the Value Chain
China controls almost the entire NdFeB supply chain:
- Rare earth mining
- Refining and processing
- Magnet manufacturing
This creates major risks for Europe:
- Supply disruptions due to export restrictions
- Loss of industrial sovereignty
- Higher long-term costs for manufacturers
Many companies still choose:
- Cheaper Chinese imports
- Short-term cost savings over long-term security
This behaviour strengthens China’s grip and increases EU vulnerability.
A stronger pathway includes:
- Recycling electronics to recover rare earth elements
- Scaling recycling capacity, which lowers individual firm risk
- Collective industry demand, even in small shares
The EU Critical Raw Materials Act (CRMA) is a step forward, but:
- Recycling targets remain weak
- Scaling domestic processing is slow
- Industry action is still essential
What Industry Must Do
- Source part of NdFeB needs from recycled materials
- Support EU-based recovery and refining
- Build resilient, circular supply chains
Europe’s reliance on external suppliers for NdFeB magnets represents not just a supply chain challenge but a broader strategic vulnerability. By prioritising recycled materials, strengthening circular systems, and reducing dependence on foreign imports, industry players can help build a more resilient and secure magnet supply for the future. The decisions made today will determine Europe’s technological and economic independence in the years ahead — and acting early will be essential to staying competitive in a rapidly shifting global landscape.
