NEODYMIUM (ND)
VERY HIGH RISK
Overview
A rare earth metal that forms the most powerful permanent magnets known. Neodymium-iron-boron (NdFeB) magnets are foundational to precision guidance systems, advanced electric motors, aerospace actuators, and high-performance industrial systems.
Strategic importance
NdFeB magnets are the strongest permanent magnets known. Used in Tomahawk guidance fins, F-35 actuators, advanced radar signal processing units, electric aircraft propulsion systems, drones, and precision missile systems. Modern electrification and advanced defense manufacturing are deeply dependent on neodymium magnet supply chains.
Risk score
85/100
Primary use cases
Global supply chain map
Key stats
Known reserves~20–30M tons estimated contained. Global production is primarily tied to broader REE mining output. China accounts for ~85–90% of refining; export controls create indirect exposure through Chinese REE and magnet supply chains.
# of producing countries4
Global production (2023)—
China share of refining—
Export controls—
Producing countries
Defense & flow
Defense capability exposure
| Capability area | Exposure level | Score |
|---|---|---|
| Missile Guidance Systems | CRITICAL | 5 |
| Radar & ISR Systems | HIGH | 4 |
| Drone & Autonomous Systems | CRITICAL | 5 |
| Aerospace Propulsion & Actuation | CRITICAL | 5 |
| Electronic Warfare Systems | HIGH | 4 |
| EV & Industrial Motors | CRITICAL | 5 |
Strategic impact
Neodymium is foundational to the permanent magnet systems that power precision-guided weapons, drones, aerospace actuators, radar systems, and advanced industrial motors. A disruption in neodymium refining or NdFeB magnet manufacturing would create cascading impacts across missile production, aerospace manufacturing, electric propulsion systems, and strategic energy infrastructure. The highest-risk vulnerability is not mining itself, but the near-total concentration of magnet manufacturing capacity in China.
Supply chain control
China
Controlled through REE separation and permanent magnet supply chains.
Risk indicators
- NdFeB magnets manufactured almost exclusively in China
- U.S. has zero domestic NdFeB magnet manufacturing at scale
- Combines raw material dominance with manufacturing lock-in
Risk & challenge analysis
NdFeB magnets are manufactured almost exclusively in China, combining raw material dominance with downstream manufacturing lock-in. Even when rare earth ore is mined outside China, it is often processed or converted into magnets within Chinese-controlled supply chains. DoD-critical systems including missile fins, electric aircraft, targeting systems, radar actuators, and autonomous platforms remain heavily dependent on this ecosystem.
Strategic insight
The United States currently lacks domestic NdFeB magnet manufacturing capacity at meaningful industrial scale despite recent DoD and private-sector investment initiatives. Building a resilient allied magnet ecosystem will likely require years of coordinated mining, refining, magnet production, and defense procurement alignment.
Value chain — key companies
UPSTREAM
Extraction & mining
- MP Materials
- Lynas
MIDSTREAM
Refining & processing
- JL MAG
- Zhong Ke San Huan
- VAC
DOWNSTREAM
Manufacturing & end use
- Tesla
- BYD
- Defense contractors
- EV manufacturers
◎
Key chokepoint
Permanent magnets
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