What factors affect the price of NdFeB magnets?Neodymium magnets, as the currently best-performing permanent magnets, have applications in numerous fields. In electric vehicles and wind turbines, high-efficiency motors or generators often rely on neodymium magnets to ensure performance. However, due to the high and unstable price of neodymium magnets, the manufacturers that purchase them face significant challenges in cost control. In some large-scale wind power generation equipment, the price fluctuations of neodymium magnets can even greatly affect the budget and benefits of the entire project.

This article will start from the raw material prices of neodymium magnets and analyze which main raw materials specifically affect the price of neodymium magnets.

The main raw materials affecting the price of NdFeB magnets

1.Praseodymium Neodymium Alloy

Praseodymium-neodymium alloy is the most important raw material in the production of neodymium magnets. The usage of praseodymium-neodymium alloy in each kilogram of neodymium magnets is approximately 20% to 30%. Due to its low output and high market demand, its current price is as high as 465,000 yuan per ton. In neodymium magnets with lower coercivity, such as N, M, and H series, its cost can account for 70% to 90% of the total raw material cost. However, as the coercivity further increases, the addition of other more expensive rare earths will also increase, and its impact on the total cost will decrease.

In the early stage of large-scale production of NdFeB magnets, manufacturers only used pure neodymium metal for production. But with the iteration of manufacturing technology and the accumulation of experience, manufacturers found that using praseodymium to replace neodymium in NdFeB magnets does not significantly reduce the performance of the magnets. In addition, the price of praseodymium-neodymium alloy is lower than that of pure neodymium metal, which provides manufacturers with an opportunity to save costs.

Therefore, manufacturers have turned to using praseodymium-neodymium alloy to produce NdFeB magnets. Since there is no need for expensive element separation treatment anymore, the material cost has also been reduced, and the addition of praseodymium also enhances the oxidation resistance and mechanical properties of the magnets.

2.Industrial pure iron

The commonly used models of industrial pure iron for the melting of neodymium magnet raw materials include YT0, YT01, etc. They have the characteristics of low carbon, low phosphorus, and low sulfur. High-purity pure iron can improve the magnetic properties of neodymium magnets, as well as enhance their mechanical strength and corrosion resistance.

Although the usage of pure iron in each kilogram of neodymium magnets accounts for approximately 60% to 70%, due to the price of pure iron being only 4 to 5 yuan/kg, its influence is relatively small compared to the total price of neodymium magnets, which ranges from 100 to 500 yuan/kg.

3.Dysprosium

Metallic dysprosium (Dy) is employed as an additive in neodymium-iron-boron permanent magnets. Adding a small quantity of dysprosium to the magnet can significantly enhance its coercivity.

However, in actual production, manufacturers add cheaper Dysprosium-iron alloys for cost reasons. The dysprosium-iron alloy, consisting of dysprosium (Dy) and iron (Fe) elements, is commonly employed in high-performance magnets, particularly in applications where high-temperature stability is requisite.

Neodymium magnets of lower performance grades generally do not incorporate or add only a small amount of dysprosium-iron. The higher the coercivity requirement of the neodymium magnet, the greater the addition quantity of dysprosium-iron. In the raw materials of EH and AH grades, the cost of dysprosium even exceeds that of praseodymium-neodymium. This is the primary factor contributing to why the higher the coercivity, the more expensive the price of the neodymium magnet becomes.

4.Terbium

Terbium is also used as an additive, and its effect on enhancing coercivity is stronger than that of dysprosium, but its price is really too expensive. Only in grades SH and above will a small amount of terbium be used. Even an addition of only 1% will increase the cost of each kilogram of magnet by 65 yuan.

5.Cerium

Due to its huge output and relatively few application fields, the price of metallic cerium is as low as 25,000 yuan per ton, which is only 5% of the price of praseodymium-neodymium. In the manufacturing process of neodymium magnets, to reduce costs, metallic cerium can be appropriately added to replace part of the praseodymium-neodymium alloy. Based on the current price, for every 1% replacement of the praseodymium-neodymium alloy, the price of each kilogram of neodymium magnets can be reduced by 5 yuan.

Although significant progress has been made in the cerium-adding process at present, the addition of cerium still inevitably leads to a decrease in the remanence and coercivity of the magnet. Once the addition of cerium exceeds 12% to 14%, the performance of the neodymium magnet will deteriorate seriously. Therefore, metallic cerium is only partially added in N, M and H series neodymium magnets with lower performance requirements.

Other added materials

Apart from those additive materials that occupy a major position, neodymium magnets also incorporate a small amount of substances such as boron, aluminium, and copper to optimize their performance. However, the addition amount of these materials is quite limited and hardly has any impact on the price of neodymium magnets.  

The following are some raw materials used in the manufacture of neodymium magnets and their average prices in August 2024.

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