Daido Steel has developed technology for neodymium magnets that ensures heat resistance without using dysprosium or terbium and has established a mass-production system. The global market is expected to continue expanding, while the risk of Japanese companies losing market share has also been mentioned.
Daido Steel has developed technology for neodymium magnets that achieves high heat resistance while reducing the use of rare earths and has commercialized the magnets for hybrid vehicles. Group company Daido Electronics has established a mass-production system.
The global neodymium magnet market is expected to continue growing and is projected to reach approximately US$23.7 billion (approximately ¥3.7 trillion) in 2032, driven by expanding demand for electric vehicles and wind turbines. Forecasts indicate that demand in 2025 will be approximately 1.8 times current levels.
Continued dependence on China for raw materials remains a supply risk for neodymium magnets. The impact of conventional technology, which uses dysprosium and terbium as additional materials to improve heat resistance, has also been cited. Japanese companies account for approximately 15% of the global market, while Chinese companies are said to account for more than 80%.