Neodymium
Neodymium’s powerful magnetic attributes are vital for strategic sustainable technological advancements
Neodymium
Neodymium is a rare earth element (REE) mostly found in monazite and bastnaesite ores. Neodymium is a key component for the strongest permanent magnets, notably the neodymium-iron-boron (NdFeB) magnet which are indispensable in the motors of wind turbines and many electronic products. With the transition to green energy, demand for neodymium and other REEs continues to rise.
The main reserves of neodymium are in China, which is by far the world’s largest producer. Demand for neodymium is expected to grow by as much as 300% in the next decade – this, along with strategic concerns over China’s supply chain dominance, can be expected to drive the development of new extraction projects.
Current neodymium operations have a low exposure to ESG risks because of the mineral’s obscurity and the REEs are often addressed as a group in the media. However, scrutiny over the environmental impacts of REE mining in China is likely to increase alongside the implementation of critical mineral policies in key jurisdictions.
Main uses and applications
Neodymium is a soft, silverly-white, ductile, sightly malleable and reactive material with a fast oxidation rate when exposed to air and moisture. It has moderate toxicity and is highly combustible. Neodymium has very strong electropositive properties.
Its principal industrial applications are in permanent magnets, particularly when mixed with alloys, such as iron and boron – creating one of the strongest magnets on earth (NdFeB). These permanent magnets are widely used in electric motors and generators, with applications in renewable energies (wind turbines, electric generators), e-mobility (electric/hybrid cars, batteries) and electronics (computer, hard discs, head/earphones, microphones). Additionally, due to its varied and unique properties, neodymium has several applications in the ceramic and glass industries. It is used in glass dyes, light bulbs, crystals, welding goggles and filters, due to its colourful compounds in violet shades. It can be found in several types of laser devices.i
Supply Chain Risk
TDi Sustainability's data rates Neodymium's association with the following issues as high or very high:
Country Governance Risks
Neodymium's association with countries experiencing: