Rare Earth Uses

Some of the uses for the SMM products.

Wind Turbines
Magnets for Electric Vehicles
Solar Panels
Earphones and Speakers
Cameras and Catalytic Converters
Missile Guidance and Defense
Smart Phones and Computers
Cordless Power Tools

2 The global neodymium market size was valued at US$2.07 billion in 2021 and is expected to expand at a CAGR of 15% to 2030

“Information courtesy of SRMC”

Neodymium, praseodymium and dysprosium make up 13% to 14% of the mass of the rare earths in the mine and about 85% of the economic value.

Batteries

Nickel-metal hydride (Ni-MH) batteries use cerium, lanthanum, and neodymium to improve efficiency and durability. They power mobile phones, laptops, cameras, and other portable devices.

These batteries are also vital for hybrid and electric vehicles, medical devices, and backup systems. Rare earths remain critical for performance, supporting cleaner transport, renewable integration, and sustainable energy storage solutions.

Catalysts

Rare earths are essential in Fluid Catalytic Cracking (FCC), converting heavy oils into gasoline and distillates. Lanthanum dominates use, with cerium and neodymium supporting catalyst performance.

Cerium also reduces NOx and SOx emissions in FCC additives and enables carbon monoxide oxidation in vehicle catalytic converters. Demand in refining remains strong, though automotive use may decline as electric vehicles expand.

Phosphors

Europium and terbium are vital in phosphors used for lighting and display technologies. They produce efficient, stable luminescence for televisions, computer monitors, and advanced lighting systems.

Although phosphors account for only about 7% of rare earth demand by volume, their high cost makes them significant by value. Their role in electronic displays and efficient lighting remains indispensable.

Glass

Cerium is widely used in glass manufacturing. It filters ultraviolet light, improving durability and protection in optical and industrial glass applications.

It is also used in polishing powders that exploit its unique chemical and mechanical properties. These allow precision finishing of lenses, screens, and scientific glass, making cerium vital to both performance and processing functions.

Fuel Cells

Rare earths are central to fuel cell technology, a promising clean energy source for vehicles and power generation.

In solid oxide fuel cells (SOFCs), rare earths are essential for separator stacks, with no substitutes available. They enhance durability and conductivity, enabling reliable energy conversion and supporting global efforts to expand sustainable, low-emission power solutions.

Metal Alloys

Rare earths strengthen superalloys used in turbines, generators, and aerospace components. This sector accounts for 15–20% of global demand.

They also form part of nickel-metal hydride batteries, driving demand for lanthanum and related elements. Rare earth alloys provide durability and high-temperature resistance, ensuring their importance in advanced engineering, power systems, and energy storage technologies.

The rare earths used in magnetic applications account for about 85% of the value in the ore.

Hybrid and Electric Vehicles

Hybrid and electric vehicles rely heavily on neodymium magnets. In 2020, six to ten million hybrids were produced, each using around two kilograms of magnets.

Total neodymium demand for vehicle magnets reached 15,000–20,000 tons that year. These materials are critical for motors, steering, braking, and sensors, making rare earths central to electrified transport systems.

Wind Turbines

Wind turbines require large volumes of neodymium magnets. Hybrid designs use about 200 kilograms per megawatt, while direct-drive turbines need 500–600 kilograms.

Replacing a 500 MW coal plant with wind would require 275 tons of magnets. In 2020, turbine demand for neodymium was around 10,000 tons, highlighting its importance to renewable energy generation.

Air Conditioners

Air conditioning is a rapidly expanding sector for rare earths. Neodymium magnets increase system efficiency by about 20%, reducing energy consumption.

In 2020, global demand for neodymium magnets in this industry exceeded 5,000 tons. With urban growth and rising cooling needs, air conditioning represents a growing market for efficient, rare earth-based technologies worldwide.

Acoustic Transducers

Neodymium magnets are essential in acoustic systems. Over two billion mobile phones use them in speakers and vibration motors, while vehicles require more than 300 million speakers annually.

Headphones, earbuds, and other audio products also depend on these magnets. Together, acoustic applications consume more than 5,000 tons of neodymium each year, supporting communication and consumer audio industries.

Wind turbine generators contain up to one ton of neodymium per megawatt of electricity generation capacity.