China's Market Demand For NdFeB Neodymium Magnet

1. New energy vehicles (motor and battery)

Since 2015, China's new energy vehicle production has continued to grow rapidly, with an average annual growth rate of about 38%. From January to September this year, the production reached 735,000 vehicles, with an annual target of 1 million vehicles. It is estimated that 7635 tons of NdFeB neodymium magmets will be consumed, accounting for 5% of China's total NdFeB production. It is planned to double by 2020 and produce 2 million new energy vehicles annually, which consumes about 15,960 tons of NdFeB neodymium magmets, accounting for 9.4% of China's total NdFeB production.

2. Industrial robot (permanent magnet synchronous servo motor)

According to statistics, China's industrial robot production from January to September 2018 is 108,300 units, a year-on-year increase of 9.3%, it is estimated that the annual production will be nearly 150,000 units, which will consume 4,500 tons of NdFeB neodymium magmets, accounting for about 2.9 percent of China's NdFeB production. From 2018 to 2020, the annual growth rate of industrial robots in China is expected to be about 20%. By 2020, the annual production of industrial robots will be nearly 230,000, which will consume 6,900 tons of NdFeB neodymium magmets, accounting for 4.1% of China's NdFeB production.

3. Energy-saving elevator (permanent magnet synchronous tractor)

Influenced by factors such as real estate and trade wars, China's elevator production has slowed down this year. According to statistics, China's elevator production in 2018 will be about 816,000 units, an year-on-year increase of 3%. Among them, about 750,000 vertical elevators need to consume 3,000 tons of NdFeB neodymium magmets, accounting for about 1.9% of China's NdFeB production. It is estimated that by 2020, about 800,000 units will need to consume 3,200 tons of NdFeB neodymium magmets.

4. Variable-frequency air conditioner (rare earth permanent magnet variable frequency compressor)

According to the data of the National Bureau of Statistics, China's air conditioner production is 160 million units in 2018, with an estimated annual production of nearly 200 million units. Among them, the variable-frequency air conditioners account for about 55%, while the variable-frequency air conditioners using NdFeB permanent magnet materials account for about half of the variable-frequency air conditioners, nearly 55 million units, which consumes about 6600 tons of NdFeB, accounting for about 4.3% of China's NdFeB production. It is expected to reach units 70 million in 2020, which will consume 8,400 tons of NdFeB neodymium magmets, accounting for 4.9% of China's NdFeB production.

In short, the establishment of the strategic position of rare earth permanent magnet materials will further promote the development of China's rare earth permanent magnet materials industry, and the huge market demand will make the application of rare earth permanent magnet materials in the downstream field have great room for growth.