What is the development of neodymium magnet prices?
Table of Contents
Price trend from 2021 to 2025
Various factors have led to a significant increase in the price of neodymium in recent years. Among other things, the following developments contributed to this price increase, particularly between 2021 and 2025:
Price trend Neodymium August 2024 – August 2025 (Source: tradingeconomics.com)
Current market trend (as of August 2025)
After the raw material price for neodymium reached a temporary peak in 2022 and then fell significantly until 2024, the market price has been rising sharply again since the beginning of 2025. The price of neodymium has increased by around 50% over the past twelve months. In addition, the US dollar has weakened against the Chinese RMB, further increasing import costs for raw materials. Furthermore, the logistics situation has not improved: Due to ongoing geopolitical tensions, many cargo ships continue to bypass the Cape of Good Hope, resulting in longer transit times and higher freight costs. Since April 2025, stricter export controls in China have also led to additional customs clearance costs, for example, due to mandatory material testing or documentation requirements. All of these factors are once again significantly driving up procurement costs for neodymium magnets.A sharp increase in demand for neodymium magnets
Demand has risen sharply in sectors such as electric vehicles and wind power, which require neodymium magnets in their products. These efforts, aimed towards energy transition, are partly responsible for the increased price of neodymium magnets.Rising transportation costs
The rerouting of numerous cargo ships around the Cape of Good Hope due to the ongoing security situation in the Red Sea has, for months, led to significantly longer shipping routes and reduced availability of shipping capacity. Combined with higher fuel prices and overall strong demand in global trade, this has resulted in noticeably increased transport costs for sea freight from Asia.
Price trend USD / CNY August 2024 – August 2025 (Source: tradingeconomics.com)
A rising RMB exchange rate compared to the USD
As is customary in international purchasing, our orders placed with Chinese manufacturers are settled in US dollars. However, since the Chinese currency RMB (RMB = Renminbi Yuan) has developed significantly stronger against the US dollar in the course of the rapid recovery of the Chinese economy after the first lockdown in 2020, higher raw material costs increased further due to the additional currency impact. In recent years, the US dollar recovered against the RMB, which levelled out the currency effect. Since the onset of the tariff dispute between the USA and China and the rise of protectionism, however, the US dollar has once again come under slight pressure. At present, this has not yet had a significant impact on procurement prices – but the situation must continue to be monitored closely.You can find more detailed information on the price increase, for example, in these online articles:
- DW (23.06.2025) – How China wields rare earths as a strategic weapon
- CNN Business (05.06.2025) – EU sounds alarm to China over rare earth export controls
- CNN Business (20.05.2025) – China isn’t getting rid of its controls over rare earths, despite trade truce with US
- The New York Times (21.03.2025) – Why the Shipping Industry Isn’t Rushing Back to the Red Sea
The situation in May 2025
Since April 2025, new Chinese export restrictions on rare earths have been significantly impacting global supply chains. These regulations particularly affect metals that are essential for magnets with special performance characteristics—such as increased temperature resistance or mechanical stability.
Since April 2025, new Chinese export restrictions on rare earths have been significantly impacting global supply chains. These regulations particularly affect metals that are essential for magnets with special performance characteristics—such as increased temperature resistance or mechanical stability.
The immediate effects: delayed delivery times, limited availability of certain types of magnets (e.g., high-temperature-resistant magnets), as well as rising costs due to additional customs procedures and material testing.
Our purchasing team is working closely with manufacturers and logistics providers to minimise the negative impact of these new regulations as much as possible.
You can find detailed information about the export controls and their consequences on our FAQ page Export restrictions on rare earths from China – impact on magnet supply.
Implications for supermagnete and for you as a customer
We do strive to keep any upward price adjustments as moderate as possible and to immediately pass on any reductions in price. Even in this difficult economic situation, we are doing everything we can to offer you the best possible prices:- We continue to buy large volumes per magnet so that you can benefit from the economics of scale.
- Through constant monitoring of the three cost drivers - raw material price, transportation costs and exchange rate - we purchase at the optimal price for you under the given circumstances.
The situation in June 2022
The raw material price situation has still not improved. After the price for one tonne of neodymium briefly fell to about 1,1 million RMB, it has levelled off again at the consistently high amount of 1,2 million RMB. This still corresponds to a threefold increase compared to 2020.
As written in our last update from February 2022, we increased our purchasing volumes early on to counteract potential delivery delays.
With over 50 million magnets, our inventory is currently at an all-time high.
We can compensate well for the emerging problems due to the two-month lockdown in Shanghai and have very good delivery capabilities for almost all products.
Occasionally, certain items may be briefly sold out as a result of disproportionate sales. But here, too, our forecasting tools come into force early and trigger the necessary reorders from our Chinese manufacturers. The first effects of the Shanghai lockdown are expected to be felt at the end of July and will last for several weeks. However, thanks to our proactive inventory planning, we can face them with composure.
Occasionally, certain items may be briefly sold out as a result of disproportionate sales. But here, too, our forecasting tools come into force early and trigger the necessary reorders from our Chinese manufacturers. The first effects of the Shanghai lockdown are expected to be felt at the end of July and will last for several weeks. However, thanks to our proactive inventory planning, we can face them with composure.
The situation in February 2022
At 1,285 million RMB/tonne, the neodymium price has currently reached its highest level in the last ten years. After the price had remained at a fairly constant level between 2013 and the middle of 2020, it has risen by almost 250% since the outbreak of the pandemic. Although it is difficult to predict the future trend, we do not see any major relief in the intermediate term due to the increased global demand for neodymium, but rather further low-level price increases.
International logistics chains also remain strained, so that container prices continue to linger at an elevated plateau due to a mismatch of supply and demand.
Our purchasing team coordinates our deliveries on a daily basis and, if necessary, we split our bulk deliveries into several containers so that the magnets reach our warehouse and your place as early as possible.
With regard to the potential negative effect of the Olympic Games in Beijing on the procurement process, we have already taken precautionary steps and significantly increased our procurement volumes.
The situation in October 2021
The price increase for neodymium has continued unabated and reached an interim peak in 2021 at the end of October. Aside from increased demand, a major reason can be seen in the fact that, due to the Dual Control of Energy Consumption policy to achieve energy and ecological goals, the energy supply of companies is curtailed and thus production output is reduced.
In addition, there are still significant bottlenecks concerning ocean freight.
Many cargo ships reach their destination ports too late, and loading and unloading the ships take more time than usual.
In addition, the increased demand for consumer goods is leading to a shortage of shipping containers and this is expected to continue until the spring of 2022.
We are closely monitoring these developments and, as a result, ordered large quantities of magnets early on.
We are in constant contact with our logistics service providers to ensure the goods arrive as quickly as possible and to be able to deliver large orders within a reasonable time.
The situation in July 2021
After the price for neodymium had decreased in the meantime, raw material costs rose again significantly since the beginning of July 2021. In addition, the new COVID-19 outbreak in Yantian in June 2021 put even more strain on the capacities of the surrounding ports, so that the freight costs for a 40-foot container increased four- to sevenfold within a year. Thanks to long-term logistics cooperation, we can fall back on reserved container capacities so that product availability is guaranteed under the current conditions.
The situation in March 2021
The raw material neodymium is the key factor for neodymium magnets in terms of costs. The sharp price increase for neodymium and other rare earth metals needed for the manufacture of neodymium magnets therefore affects the prices of our raw magnets and pot magnets. We have to take this development into account and increase the prices of our neodymium magnets.
The raw material neodymium is the key factor for neodymium magnets in terms of costs. The sharp price increase for neodymium and other rare earth metals needed for the manufacture of neodymium magnets therefore affects the prices of our raw magnets and pot magnets. We have to take this development into account and increase the prices of our neodymium magnets.
