EV Magnet Market
EV Magnet Market by Magnet Type (NdFeB, SmCo, AINiCo, Ferrite), By Vehicle Type (Passenger EVs, Electric Buses & Trucks), by Power Rating, Application, and Region - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The EV magnet market is projected to grow from USD 5.3 billion in 2025 to USD 9.5 billion by 2030, at a CAGR of 12.4% from 2025 to 2030. This growth is driven by the rapid expansion of global electric vehicle production, increasing penetration of battery electric and hybrid vehicles, and rising demand for high-performance permanent magnets, particularly neodymium-iron-boron (NdFeB), in traction motors. As automakers focus on improving motor efficiency, torque density, and vehicle range, the adoption of permanent magnet synchronous motors (PMSMs) continues to rise across passenger EVs, electric buses, and light commercial vehicles. Government incentives supporting vehicle electrification, advancements in 800V vehicle architectures, and growing investments in EV manufacturing capacity across Asia Pacific, North America, and Europe are accelerating magnet demand. The increasing integration of magnet-based control and sensing systems in EV drivetrains and battery management systems further contributes to value growth. However, supply chain risks related to rare-earth material availability and price volatility remain key factors influencing market dynamics during the forecast period.
KEY TAKEAWAYS
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By RegionAsia Pacific dominated the EV magnet market, with a share of 79.4%, in terms of value in 2024.
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By Magnet TypeBy magnet type, the ferrite segment is projected to grow at the highest CAGR of 12.5% during the forecast period.
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By Vehicle TypeBy vehicle type, the passenger electric vehicles segment dominated the EV magnet market with a share of 90.2% in terms of value in 2024.
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By Power RatingBy power rating, the low-power motors (<60 kW) segment is expected to register the highest CAGR during the forecast period.
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By ApplicationBy application, the control & sensing systems segment is expected to register the highest CAGR during the forecast period.
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Competitive Landscape-Key PlayersProterial, Ltd., Arnold Magnetic Technologies, TDK Corporation, Yantai Dongxing Magnetic Materials Inc., and Shin-Etsu Chemical Co., Ltd are star players in the EV magnet market, given their broad industry coverage and strong operational & financial strength.
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Competitive Landscape- StartupsHangzhou Permanent Magnet Group., Ltd., JPMF Guangdong Co., Ltd, and Thomas & Skinner, Inc. have distinguished themselves among startups and SMEs due to their well-developed marketing channels and extensive funding to build their product portfolios.
The EV magnet market is experiencing strong growth, driven by rising global electric vehicle production and demand for high-efficiency traction motors across passenger EVs, electric buses, hybrid vehicles, and light commercial vehicles. Continuous advancements in permanent magnet materials, particularly neodymium-iron-boron (NdFeB) and samarium cobalt (SmCo), along with improvements in motor design and thermal management technologies, have enhanced power density, torque performance, and overall drivetrain efficiency, expanding the use of EV-grade magnets in propulsion, auxiliary motors, and control systems. This demand is further reinforced by rapid electrification trends, including government incentives for zero-emission vehicles, expansion of EV manufacturing capacity, and growing adoption of advanced motor architectures such as permanent magnet synchronous motors (PMSMs). At the same time, increasing integration of magnet-based control and sensing systems, development of high-voltage (400V–800V) platforms, and investments in localized rare-earth supply chains are driving sustained growth of the EV magnet market globally.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
Shifts in EV adoption trends, vehicle electrification rates, and powertrain technology developments directly influence OEM production volumes and revenue. Any slowdown or disruption in EV sales reduces demand for traction motors and related components. This change affects procurement from EV magnet suppliers and ultimately influences the revenue performance of EV magnet manufacturers.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Rising EV production and higher magnet intensity in PMSM traction motors
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Growth of high-power and dual-motor EV platforms
Level
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Rare earth price volatility and supply concentration
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Adoption of rare-earth-free motor technologies
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Magnet recycling and rare-earth-light technologies
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Increasing electrification of commercial EV fleets
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Supply chain localization outside China
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Thermal stability requirements in 800V+ systems
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rising EV production and higher magnet intensity in PMSM traction motors
The rapid scale-up of global EV production, particularly battery electric vehicles with permanent magnet synchronous motors (PMSMs), is directly increasing demand for high-performance NdFeB magnets. Additionally, dual-motor configurations and higher torque-density requirements are raising magnet content per vehicle.
Restraint: Rare earth price volatility and supply concentration
The market remains highly dependent on rare earth elements such as neodymium and dysprosium, whose prices are volatile and geographically concentrated, creating supply risks and cost uncertainty for OEMs and magnet manufacturers.
Opportunity: Magnet recycling and rare-earth-light technologies
Advances in magnet recycling, grain boundary diffusion technology, and reduced heavy rare earth formulations are improving material efficiency and reducing dependence on critical raw materials.
Challenge: Supply chain localization outside China
Establishing localized rare-earth processing and magnet manufacturing capacity outside China, while maintaining cost competitiveness, technical performance, and scale, remains a significant structural challenge.
EV MAGNET MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Permanent magnets integrated in electric bus and passenger EV propulsion systems | High power output, improved energy efficiency, and reliable performance in heavy-duty applications |
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High-performance NdFeB permanent magnets used in traction motors for battery electric vehicles | Higher torque density, improved driving range, enhanced motor efficiency, and compact drivetrain design |
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Magnet-based motor systems in hybrid and plug-in hybrid vehicles | Optimized fuel efficiency, reduced rare-earth dependency (advanced magnet designs), and improved thermal stability |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The EV magnet market ecosystem comprises four interconnected layers: raw material suppliers, magnet manufacturers, distributors/OEMs, and end users. Raw material suppliers, including Lynas, Alkane Resources, Northern Minerals, and China Northern Rare Earth Group, provide critical rare-earth elements such as neodymium and praseodymium. Magnet manufacturers, such as Proterial (formerly Hitachi Metals), TDK, Shin-Etsu, Arnold Magnetic Technologies, Electron Energy Corporation, Adams Magnetic Products, Tengam Engineering, Galaxy Magnets, and Niron Magnetics, process these materials into high-performance permanent magnets. Distributors and automotive OEMs, including Mercedes-Benz, BYD, Tesla, Rivian, Volkswagen, and General Motors, integrate these magnets into EV traction motors and drivetrain systems. End users primarily include EV manufacturers and component suppliers that use magnets for propulsion, control, and sensing applications, forming a vertically integrated supply chain driven by global electrification trends.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
EV magnets Market, by Magnet Type
NdFeB magnets held the largest share of the EV magnet market in 2024, primarily due to their superior magnetic energy density (BHmax), high coercivity, and ability to deliver compact, high-torque traction motor performance. Their widespread adoption in permanent magnet synchronous motors (PMSMs), the dominant motor type in battery electric and hybrid vehicles, continues to drive volume consumption. Additionally, the increasing penetration of dual-motor AWD systems, higher-power-rated platforms, and 800V architectures has further strengthened demand for high-grade NdFeB magnets with enhanced thermal stability and heavy rare-earth optimization.
EV magnets Market, by Vehicle Type
In terms of value, the electric buses & trucks segment accounted for the second-largest share of the overall EV magnet market in 2024, driven by significantly higher magnet content per vehicle. Electric buses typically use high-power traction motors (200–350+ kW) that require large volumes of high-coercivity NdFeB magnets to support sustained torque output and heavy-duty operating cycles. Government-backed fleet electrification programs in China, Europe, and select North American cities, along with increasing adoption of long-range and high-capacity battery buses and electric trucks, further amplified magnet demand in this segment, resulting in a higher average revenue contribution per unit.
EV magnets Market, by Power Rating
In terms of value, the low-power motors segment accounted for the largest share of the overall EV magnet market in 2024, driven by high production volumes of electric passenger cars, two-wheelers, and hybrid vehicles that use compact, efficient motor systems. These motors require permanent magnets for applications such as traction support, electric power steering, pumps, and auxiliary systems. The growing adoption of affordable EV models and urban mobility solutions significantly increased demand for low-power motor configurations, thereby supporting higher consumption of NdFeB magnets in this segment.
EV magnets Market, by Application
Among applications, the electric motor cores & drive motors segment accounted for the largest share of the overall EV magnet market in 2024, driven by the dominant use of permanent magnets in traction motor assemblies. As the core propulsion component of EVs, drive motors require high-energy-density NdFeB magnets to deliver optimal torque, efficiency, and a compact design. Increased production of PMSM-based drivetrains, along with the rising adoption of integrated e-axle systems and dual-motor configurations, significantly elevated magnet consumption in this application, reinforcing its leading market position.
REGION
Asia Pacific to be fastest-growing EV magnet market during forecast period
The Asia Pacific region is projected to be the fastest-growing in the EV magnet market during the forecast period, driven by its dominant position in global electric-vehicle production and rare-earth magnet manufacturing. Countries such as China, India, Japan, and South Korea lead in EV manufacturing capacity, battery production, and permanent-magnet supply, creating a vertically integrated ecosystem that supports large-scale demand for high-performance NdFeB magnets. China, in particular, accounts for the majority of global rare-earth processing and magnet production, providing cost advantages and supply security to regional OEMs. Additionally, strong government incentives, public-transport electrification programs, rapid expansion of EV charging infrastructure, and increasing adoption of electric two- and three-wheelers in emerging economies such as India and Southeast Asia are further accelerating regional market growth.
EV MAGNET MARKET: COMPANY EVALUATION MATRIX
In the EV magnet market, Proterial, Ltd. (Star) leads with a strong market share and extensive product footprint, driven by vertically integrated operations and strategic partnerships for its EV magnet portfolio. BUNTING (Emerging Leader) is gaining visibility for its specialized EV magnet portfolio and advanced manufacturing technologies. While Proterial, Ltd. dominates through scale and a diverse portfolio, BUNTING shows significant potential to move toward the leaders’ quadrant as demand for EV magnets continues to rise.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Proterial Ltd. (Japan)
- TDK Corporation (Japan)
- Shin-Etsu Chemical Co., Ltd. (Japan)
- Vacuumschmelze GmbH & Co. KG (Germany)
- JL Mag Rare-Earth Co., Ltd. (China)
- Beijing Zhong Ke San Huan High-Tech Co., Ltd. (China)
- Ningbo Yunsheng Co., Ltd. (China)
- Arnold Magnetic Technologies (US)
- Yantai Dongxing Magnetic Materials Inc. (China)
- Baotou Tianhe Magnetic Technology Co., Ltd. (China)
- Adams Magnetic Products, LLC (US)
- Bunting Magnetics Co. (US)
- Magnequench International, LLC. (Singapore)
- Goudsmit Magnetics (Netherlands)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 3.9 BN |
| Market Size in 2030 (Value) | USD 9.5 BN |
| Growth Rate | CAGR of 12.4% from 2025 to 2030 |
| Years Considered | 2022–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Billion), Volume (Kiloton) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
WHAT IS IN IT FOR YOU: EV MAGNET MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| Raw Material Suppliers (Rare earth oxides - Nd, Pr, Dy, Tb; alloy producers; magnet recyclers) |
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| Magnet Manufacturers & Fabricators |
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| OEMs & Tier-1 Suppliers (E-Drive & Motor Manufacturers) |
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| End-use Industries (Passenger EVs, LCEVs, Buses, Heavy-Duty EVs) |
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RECENT DEVELOPMENTS
- June 2025 : TDK Corporation signed a Memorandum of Understanding (MOU) with Siemens Gamesa Renewable Energy for the supply of permanent magnets for wind turbines. This collaboration was observed by Japan’s Ministry of Economy, Trade and Industry (METI) and is part of a broader initiative to build a wind turbine supply chain.
- June 2025 : Electron Energy Corporation, along with two major rare earth magnet companies, Dexter Magnetic Technologies and Magnetic Component Engineering, has rebranded as Permag, leading the world in the procurement, design, and manufacture of rare earth magnets. These companies will continue to operate under their current names, providing new levels of synergy to deliver better value to customers and the overall market.
- May 2024 : Bunting Magnetics Co. acquired TD Wright, Inc., a manufacturer of magnetic printer cylinders. This acquisition aims to expand Bunting’s product range in the printing sector.
Table of Contents
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Methodology
The study involves two major activities to estimate the current market size for the EV magnet market. Exhaustive secondary research was conducted to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include financial statements of companies offering EV magnets and information from various trade, business, and professional associations. Secondary research was used to obtain critical information about the industry’s value chain, the total pool of key players, market classification, and segmentation by industry trends down to the bottom-most level and by regional markets. The secondary data was collected and analyzed to determine the overall size of the EV magnet market, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after gathering information on the EV magnet market through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries in North America, Europe, the Asia-Pacific region, the Middle East & Africa, and Latin America. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included industry experts such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors from business development, marketing, and product development/innovation teams, and related key executives from EV magnet industry vendors; system integrators; component providers; distributors; and key opinion leaders.
Interviews were conducted to gather insights such as market statistics, revenue data for products and services, market breakdowns, market size estimates, market forecasts, and data triangulation. Primary research also helped in understanding the various trends related to magnet type, vehicle type, power rating, application, and region.
Stakeholders on the demand side, such as CIOs, CTOs, CSOs, and installation teams of customers/end users who use EV magnet, were interviewed to understand the buyer’s perspective on suppliers, products, component providers, current usage of EV magnet, and the future outlook of their business, which will affect the overall market.
The following is the breakdown of primary respondents:
Market Size Estimation
The research methodology used to estimate the size of the EV magnet market includes the following details. The market size was estimated from the demand side. It was upsized based on procurement and modernization activities for EV magnets across different applications at the regional level. These procurements provide information on the aspects of the EV magnet industry for each application. For each application, all possible segments of the EV magnet market were integrated and mapped.
Data Triangulation
After arriving at the overall market size through the market size estimation process described above, the total market was divided into several segments and subsegments. The data triangulation and market breakdown procedures described below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by analyzing factors and trends from both the demand and supply sides. In addition, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
The EV magnet market refers to the global market for permanent magnets specifically designed and manufactured for use in electric-vehicle propulsion systems. These magnets are primarily Neodymium Iron Boron (NdFeB) and, in select applications, Samarium Cobalt (SmCo). They are integrated into traction motors, such as permanent magnet synchronous motors (PMSMs), to enable high torque density, compact motor design, improved energy efficiency, and extended driving range.
The market encompasses the production, processing, and supply of rare-earth magnetic materials; magnet fabrication (sintering, bonding, coating, and precision machining); and their integration into electric drivetrains across passenger EVs, light commercial EVs, and electric buses. It also covers advancements in heavy rare-earth optimization, magnet recycling, and localized manufacturing to strengthen supply chain security and support large-scale EV electrification globally.
Key Stakeholders
- EV Magnet Manufacturers
- Government and Research Organizations
- National and Local Government Organizations
- Institutional Investors
Report Objectives
- To define, describe, and forecast the EV magnet market size in terms of volume and value
- To provide detailed information regarding the key factors, such as drivers, restraints, opportunities, and challenges influencing market growth
- To analyze and project the global EV magnet market by magnet type, by vehicle type, power rating, application, and region
- To forecast the market size concerning main regions (along with country-level data), namely, Europe, North America, Asia Pacific, Middle East & Africa, Latin America, and to analyze the significant region-specific trends
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions of the submarkets to the overall market
- To analyze market opportunities and the competitive landscape for stakeholders and market leaders
- To assess recent market developments and competitive strategies, such as agreements, contracts, acquisitions, and product developments/product launches, to draw the competitive landscape
- To strategically profile the key market players and comprehensively analyze their core competencies
Available customizations:
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the EV magnet market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company’s market
Key Questions Addressed by the Report
Which are the major companies in the EV magnet market?
Major companies in the EV magnet market include Proterial (formerly Hitachi Metals), TDK Corporation, Shin-Etsu Chemical, VACUUMSCHMELZE, Arnold Magnetic Technologies, and Ningbo Yunsheng.
Which end users in the EV magnet market are likely to exhibit the highest CAGR during the forecast period?
Electric vehicle manufacturers (automotive OEMs) are expected to exhibit the highest CAGR in the EV magnet market during the forecast period.
Which offerings in the EV magnet market are likely to drive growth over the coming years?
High-performance permanent magnets such as neodymium-iron-boron (NdFeB) magnets are likely to drive growth in the EV magnet market over the coming years.
What are the drivers and opportunities for the EV magnet market?
The EV magnet market is driven by rapid EV adoption, demand for high-efficiency motors, and supportive government policies, creating opportunities for advanced magnet technologies and supply expansion.
What are the restraints and challenges for the players in the EV magnet market?
Key restraints and challenges in the EV magnet market include rare-earth material supply constraints, price volatility, and geopolitical dependence on limited rare-earth sources.
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Growth opportunities and latent adjacency in EV Magnet Market