Why it matters
- Neodymium magnets have no drop-in substitute for compact, high-torque motors.
- China refines about 90 percent of the world's neodymium and restricted rare earth exports in 2025.
- Prices outside China run well above Chinese domestic prices because refined supply is so scarce.
Used in
EV motorsWind turbinesHard drivesGuided munitions
Supply
Mined in China, Australia, the United States, and Myanmar. Separation, refining, and magnet making are concentrated almost entirely in China.
Demand
Electric vehicles, wind turbines, robotics, consumer electronics, and defense systems.
Role in the portfolio
Growth allocation. Western governments are funding new supply chains, and prices outside China are set by scarcity of refined product.
Scorecard
Scarcity60
Industrial demand95
Supply concentration95
Liquidity45
Team view, not market data.