A report by McKinsey & Company predicts that as the energy transition accelerates, the market size for rare earth permanent magnets will triple by 2035, posing greater challenges for global supply.
Rare earth permanent magnets are currently the strongest magnets available on the market for use in electric motors and wind turbine generators. These magnets typically require four rare earth elements as raw materials: neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb). The first two are the main components, while the latter two are additives used in more essential applications to enhance performance.
McKinsey estimates that although permanent magnets account for only 30% of the total rare earth production, their share in the total value of the entire rare earth market is 80%.