High-performance NdFeB magnets for audio equipment

by Vianie Li & Cecile de Veyra

China, which has the world’s largest reserve of rare-earth elements, is as expected also their top producer. REEs have assumed greater importance due to the worldwide sustainability trend, being the key materials in the manufacture of NdFeB magnets used in wind turbines and electric vehicle engines. They remain widely used throughout the electronics industry as well, particularly in consumer electronic devices such as smartphones, hard disk drives and audio products.

With such abundant resources and a near-monopoly on their supply, the country ranks first in the production of NdFeB magnets. Its share of global shipments is more than 90 percent, according to China Industry Information Net. However, in terms of output for the high-performance category, especially those for EVs and wind turbines, only about 50 percent comes from China, according to a report by Damien Ma and Joshua Henderson on MacroPolo. “Japan and Germany account for the remaining high-performance magnets market, with Japan’s Hitachi Metals owning most of the patents for advanced sintered NdFeB magnets.”

To achieve equally high volume and quality levels, most Chinese manufacturers are planning to gradually shift their R&D and production emphasis to midrange and high-end magnets in the coming years. This is after experiencing intense competition from an oversupply in the low-end segment in recent years.

Besides the green energy market, one other sector Chinese suppliers are targeting is audio equipment. Magnets are widely used in headphones, speakers and microphones. Ferrite or ceramic types, mostly in grades of Y25, Y30 and Y35, are mainstream for their low costs, especially in applications with no space limitations.

In devices with size and weight constraints but needing more magnetic energy per ounce, such as headphones and earbuds, NdFeB magnets have been growing in popularity even if they are more expensive. This is because they are the strongest available on the market yet are thin and light. “The sound clarity and basic performance of the headphones with neodymium magnets are eight times that of the headphones with ferrite magnets,” according to US company Stanford Magnets. These components also enable greater sensitivity and sound output at less power.

Sintered neodymium magnets are found in some midrange and high-end audio products and are expected to dominate these segments in the coming years. Currently used are grades of N35 to N50. This may extend to grades N52 or as high as N54 for next releases of more advanced devices.

China’s ascendancy

Production of NdFeB magnets in China has been on an upward trend since the 1990s. In 2001, output surpassed that of global leader Japan. Between 2010 and 2019, this rose by 118 percent or at average 9.06 percent CAGR, according to Stanford Magnets.

Based on information from the Association of China Rare Earth Industry, the country’s turnout reached 157,000 tons in 2018, 163,500 tons in 2019, and 171,700 and 183,700 tons in 2020 and 2021 despite the supply chain disruptions from the pandemic. This year, the anticipated volume is 194,700 tons or an increase of nearly 6 percent YoY.

The industry association is also predicting an uptick in China’s production of high-performance neodymium magnets, which was 26,000 tons in 2021 and will hit 29,000 tons by end-2022.

Suppliers interviewed by Global Sources attribute this growth to widening adoption not only in consumer electronics, EVs and the new energy sector but also in medical devices and robotics. Ningbo Yuansheng Magnet Co. Ltd, which increased its output by 20 percent in 2021, will maintain this rate this year, anticipating a 10 percent boost in exports. It allocates one third of total volume produced to overseas markets.

Chinese companies send 30 to 80 percent of their neodymium magnets abroad, mainly to Europe, the Asia-Pacific region and North America. They are confident shipments will continue to rise by 5 percent through 2023.

About 200 companies make up the NdFeB magnet manufacturing pool in China, with a collective annual capacity of 400,000 to 500,000 tons.

Of the domestic enterprises, only 7.5 percent have the capability to produce more than 3,000 tons every year, while the rest fall below 1,500 tons, according to China Information Industry Net. The top 25 manufacturers account for 58 percent of China’s total volume. The first five are Zhong Ke San Huan, Innuovo Magnetics, Tianhe Magnets, Ningbo Yunsheng and Beijing Magnets.

Foreign companies operating in China include Hitachi Metals, Shin-Etsu Chemical, TDK and VAC. They focus on high-performance neodymium magnets.

Up to 40 percent of these manufacturers are found in Zhejiang, Jiangsu and Shanghai, according to China Information Industry Net. The majority are in Ningbo and Hengdian, both in Zhejiang. Others are scattered across the Bohai Bay Rim Economic Region, Shanxi, Baotou, Ganzhou and Shandong.

Competition is stiff in this product category, so few new players are expected to venture into manufacturing. There is also a possibility that small enterprises will drop out in the coming years.