How is it that this is only now a public issue. Understand our entire electrical universe created a century ago was a work around to deal with lousy iron permanent magnets. Then along came neodymium magnets that do not fail. And for twenty years we have sat on our hands.
The whole electrical industrial complex needs to be freshly reengneered top to bottom and replaced. The savings will be immense.
We have had them in Washing machine motors for twenty years already. Canada is now mining the stuff and surely we are processing it somewhere.
Securing neodymium is a strategic imperative for America
The almost complete US reliance on a single foreign supplier, China, for rare-earth magnets is a glaring vulnerability
by Sunny Cheung September 5, 2025
Neodymium magnets. Photo: Keneng Hardware
https://asiatimes.com/2025/09/securing-neodymium-is-a-strategic-imperative-for-america/
This article, originally published by Pacific Forum, is republished with permission.
Tesla CEO Elon Musk told investors in April that the production of its Optimus humanoid robots had been affected by China’s export restrictions of rare earth magnets. That admission marks the clearest signal yet that China’s export controls on heavy rare-earth magnets are hitting high-tech US industries—and fast.
The term “rare-earth magnets” typically refers to two classes: neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo). Of the two, NdFeB is the backbone of everyday consumer products. These magnets offer remarkable magnetic strength. The magnetic force of rare-earth magnets can be up to 15 times that of traditional ferromagnets of the same size.
These properties make NdFeB magnets uniquely suited for applications requiring compact, high-torque electric motors, such as robotics, electric vehicles, and advanced aerospace systems. Each Tesla Optimus robot, for example, contains dozens of motors, each embedded with high-performance NdFeB components – at least 3.5 kilograms of the material per unit.
Neodymium-based magnets are usually composed of approximately 30% rare earth elements (primarily neodymium), about 69% iron, and roughly 1% boron. Heavy rare-earth elements are essential for enhancing high-temperature performance and stability. Even minimal additions allow these magnets to retain strength near boiling point temperatures, making them irreplaceable in confined, high-heat environments.
NdFeB magnets are thus foundational to a wide range of high-tech and industrial systems.In the electronics sector, they enable fast and accurate data processing in hard drives, power speakers and vibration motors in smartphones.
In industrial manufacturing, NdFeB magnets are central to high-efficiency motors, generators, and magnetic couplings, with an annual demand of 20,000–30,000 tons – rivaling even the automotive sector.
Wind power also relies heavily on NdFeB-based permanent magnet synchronous generators, with a single turbine consuming several hundred kilograms of the material.
In medical technology, NdFeB magnets provide the high field strength needed for MRI imaging.
China recognized the strategic importance of NdFeB magnets years ago. In 2016, the Ministry of Industry and Information Technology, along with other central agencies, designated high-performance magnet as a “key strategic material” in the New Materials Industry Development Guide. High performance NdFeB magnet was specifically mentioned in 2021 when the material was again prioritized in the Key New Materials First Batch Application Demonstration Guide.
These directives provided the foundation for a comprehensive industrial policy focused on research, development, and scaled production of high-performance magnets.
By 2022, China had produced over 230,000 tons of sintered NdFeB magnets. However, only 64,000 tons met high-performance thresholds, underscoring the push not just for quantity but also quality.
Industry leaders such as JL MAG and Ningbo Yunsheng are at the forefront of this growth. JL MAG, one of the biggest rare-earth magnet producers in China, expanded from 23,000 tons in early 2024 and aims to reach 40,000 tons by 2025. Ningbo Yunsheng is developing an additional 15,000-ton smart manufacturing facility in Baotou, one of China’s rare-earth hubs.
National and provincial policies further reinforce this trajectory. The 2022-2030 Carbon Neutrality Implementation Plan prioritizes rare-earth-based motors in EVs, wind turbines, hydrogen systems, and robotics. Local initiatives in Sichuan and Zhejiang promote R&D in high-end applications and support the development of magnets that minimize or eliminate heavy rare earths.
Meanwhile, the United States is playing catch-up. MP Materials, the only significant rare-earth mining and processing firm in the US, achieved record production of 1,300 tons of NdPr oxide. However, compared to China’s estimated 300,000-ton production by 2024, the scale gap remains daunting.
The US government has recently responded with strategic investments. The Department of Defense committed $400 million to support domestic magnet production, establishing long-term purchase agreements and price floors to stabilize the market.
Apple also pledged $500 million to purchase rare-earth magnets from MP Materials, starting in 2027.
However, these efforts, while promising, are still years away from significantly reducing US dependence on Chinese supply chains.
This is more than a trade imbalance; it is a national security risk. Rare-earth magnets are central to everything from drones to missile guidance systems. The fact that the United States, despite its technological prowess, relies almost entirely on a single foreign supplier for such a critical input is a glaring vulnerability.
China’s leverage is more than theoretical. In April 2025, it halted exports of heavy rare earths and associated magnets as a retaliatory measure against new US tariffs. Companies like Tesla are already reporting disruptions. Each robotic joint that goes unbuilt due to a lack of rare-earth magnets underscores the real-world impact of these supply constraints.
The risk is systemic. China currently controls over 90% of the global production of heavy rare-earth magnets. Japan produces the remainder but still depends on Chinese raw materials. And while recent trade negotiations appear to have loosened some restrictions, the precedent is clear: China can, and will, use export controls as weapons and leverages when it suits its interests.
The United States must act decisively. Scaling domestic production is essential but insufficient on its own. The US must also collaborate with allies like Japan to establish a strategic reserve for rare-earth magnets.
At the same time, it can explore new initiatives such as investing in rare-earth material recycling and accelerating research and development into magnet alternatives and heavy rare-earth-free designs. Policymakers must elevate this issue within national industrial strategy, not treat it as a niche technical concern.
Warnings from the US tech industry should not be seen as a one-off inconvenience for a high-tech billionaire but as a harbinger of broader vulnerability across industries that will define the 21st century. Whether in AI-driven robotics, autonomous systems or next-generation defense platforms, rare-earth magnets are foundational in today’s physical world. The time to secure their supply is now.
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