Rare Earth Magnet | 21 Aug 2025

Source: FE

China has decided to lift restrictions on the export of rare earth magnets to India, providing a significant boost to sectors like automobiles, renewable energy, consumer electronics, defence, aerospace, and healthcare. 

Rare Earth Magnets  

• Definition: Rare earth magnets are the strongest type of permanent magnets commercially available, known for high magnetic strength and resistance to demagnetisation. 
• Composition: Made primarily from rare earth elements like neodymium, praseodymium, and dysprosium, often in alloys such as neodymium-iron-boron (NdFeB). 
• Applications: Crucial in miniaturised and energy-efficient devices where weight, space, and thermal resistance are key. Used in electric motors, sensors, speakers, and other high-performance components. 
  • Adoption has surged over the past 6–8 years due to their compact size, high effectiveness, and thermal resistance compared to traditional magnets. 
• Global Market: China accounts for ~70% of rare earth metals mining and nearly 90% of rare earth magnet production. 
• India’s Plans for Self-Reliance: India is facilitating short-term imports of rare earth magnets from non-China sources like Vietnam, Brazil, and Russia, while aiming to build a full domestic production chain within 3–5 years, supported by incentives and public-private partnerships.