The study by KIMS suggests that by controlling the microstructure of the magnet atoms, a third of the rare earth content can be replaced by cerium while maintaining magnetic properties equivalent to 42M grade NdFeB magnets.

Neodymium and mixed neodymium-praseodymium (NdPr) are the main rare earths used in NdFeB magnets, which allow for improved operating efficiency and miniaturisation across applications including toys, air conditioners, wind turbines, electric vehicles (EVs), and military technologies. Demand for NdPr is set to accelerate in line with growth in EVs, as higher efficiency electric motors using NdFeB magnets allow for cost savings (or improved driving range) on the battery side of the vehicle.

Mine supply of rare earths comes as a full package of the 14 lanthanides and growth in neodymium demand in EVs is causing an existing surplus of cheaper and more abundant cerium to extend further, while neodymium supply is moving into a deficit. Cerium can substitute for some of the neodymium in NdFeB magnets, but this deteriorates the magnetic properties and removes the required efficiency advantages. Nevertheless, Ce-NdFeB magnets have already gained significant market share in less critical applications, such as toys, as the market for neodymium has tightened.

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