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Neodymium, unlike other rare earth elements, is more resistant to corrosion. The pink oxide layer peels off easily. As a metal, it is flammable and irritating. Its unique properties also determine its main use: it is highly magnetic.
Neodymium is primarily used in the production of extremely powerful neodymium-iron-boron magnets. In the high-tech industry, they are used wherever strong magnets with a small volume are required: in wind turbines with high-performance electric motors, in microphones, or in smartphone speakers.
Magnets made of neodymium offer significantly higher performance than conventional magnets, for example in generators in wind power plants. Since the weight of the drives plays a significant role in wind turbines, the demand for neodymium is definitely highest here.
Neodymium is hugely important for many future technologies, and its importance is constantly growing. For example, neodymium magnets are used in the elevators at One World Trade Center in New York. Experts predict that global demand for neodymium will continue to grow steadily.
Why could neodymium be an interesting investment?
- Neodymium is ideal as a basis for alternative investment in rare earth elements. Holders of raw materials with medium- and long-term prospects are particularly benefiting from growing demand from industry. In the near future, demand will exceed supply. Since neodymium production is concentrated almost exclusively in China, supply disruptions and price increases are to be expected.
- The capacity of wind power plants in Europe will almost double by 2030.
- Electric cars will account for two-thirds of global car sales by 2030.
- Annual global demand for neodymium is projected to increase from 7,001 tons in 2020 to a maximum of 76,843 tons in 2050.
- The global military drone market is expected to grow to $33.6 billion by 2034, representing an average annual growth rate of just under 8%.
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*The goods are located in a customs warehouse in Germany – delivery of goods not subject to VAT in Poland in accordance with Article 22(1) of the VAT Act. The agreement is concluded from the date of payment for a period of 1 year. It is not possible to physically collect the Goods from the Free Warehouse. Mennica Skarbowa guarantees the possibility of selling the Goods at market price.