Magnets 2026: neodymium +47% and new UH/EH grades
2026 moved the rare earth market to a different price level, but the jump came earlier than is usually written. According to Trading Economics quotes, neodymium stood at CNY 787,500 per tonne on 12 January 2026 and CNY 1,065,000 on 10 February — 35 percent higher in under a month. The peak came on 27 February: CNY 1,155,000 per tonne. May brought a correction, from CNY 1,045,000 on 6 May to CNY 935,000 on 29 May, and on 7 September 2026 the quote stands at CNY 955,000. Year on year it is still expensive: CNY 546,000 in May 2025 against CNY 945,000 in May 2026, 73 percent more. Such extreme volatility requires engineers and purchasing managers to change their strategies immediately. In response to the market chaos, Asian factories are implementing advanced coating methods (GBD) and extreme temperature grades (UH, EH), which drastically reduce the mass of raw material used. As DHIT, we import these solutions directly from our Chinese factory to warehouses in Poland, ensuring the continuity of the supply chain.
Mounting without drilling
Neodymium prices 2021-2026: Trading Economics quotes
To understand the scale of the change it is worth looking at the whole chart, not at a single month. This was not slow, predictable growth: neodymium fell from CNY 765,000 per tonne in September 2021 to CNY 457,500 in June 2024, and only then turned upwards. All values in the table come from one source — the Trading Economics chart, read on 7 September 2026.
| Quote date | Neodymium price (CNY/t) | Market context |
|---|---|---|
| 06.09.2021 | 765,000 | The oldest point available on the Trading Economics chart. |
| 17.06.2024 | 457,500 | Bottom of the cycle. For the three preceding years prices were falling, not rising. |
| 12.05.2025 | 546,000 | Rebound driven by EV and data centre demand. |
| 27.02.2026 | 1,155,000 | Peak of the whole cycle. Against CNY 787,500 on 12 January that is +47% in six weeks. |
It was not only neodymium that rose. Heavy rare earth elements (HREE) — dysprosium (Dy) and terbium (Tb), used for temperature stabilisation of magnets — moved up in the same cycle. We do not have quotes for them from a source as transparent as the one for neodymium, so we give no percentage; the direction still matters, because these elements drive the cost of UH and EH grade magnets.
What is grain boundary diffusion (GBD) and how does it save budgets?
- Why does it work? GBD increases coercivity (resistance to demagnetization at high temperatures) by 30%, using 50-70% less expensive dysprosium in the process.
- Where does DHIT get these magnets from? Our factory located in China produces SH, UH and EH grade magnets successfully using GBD technology. The finished goods go to our warehouse in Poland, which allows us to offer them at competitive rates despite stock market turbulence.
Miniaturization: practical examples and real savings
Switching to higher energy grades (e.g. from N38 to N55) combined with GBD technology allows engineers to reduce the dimensions of the magnet, which yields colossal financial savings at current prices.
- Dimensions (old vs new): The former N38 (MW 22x10 mm) magnet can now be replaced by an N55 (MW 15x8 mm) magnet with identical attractive force.
- Weight reduction: A change from 50 grams to just 30 grams per piece.
- Material savings: Around 40% on each produced motor.
- Profit in PLN: At a price of 840 PLN per kilogram, saving 40% of mass on one ton of magnets means a profit of about 336,000 PLN for the company's wallet.
Impact of the price shock on key industries
Humanoid robotics
A humanoid of this class uses 2–4 kg of NdFeB magnets spread over several dozen actuators; for Optimus, around 3.5 kg is quoted. At the production scale planned in the hundreds of thousands of units, this is one of the main drivers of global demand.
Automotive EV (electric vehicles)
A standard EV motor requires approx. 2-3 kg of magnets (SH/UH grades). Premium manufacturers (Tesla, BMW, Audi) pass the cost on to the customer (a markup of approx. +400 EUR to the car price), while smaller brands have to cut margins or switch to induction motors without magnets.
Commercial drones (DJI and others)
They require extreme miniaturization. Switching to EH grade magnets allows drones to operate in hot climates without the risk of losing thrust, while simultaneously reducing the weight of the rotors.
Medicine and wind turbines
Half-ton rotors in offshore wind turbines mean hundreds of kilograms of neodymium. In turn, in medicine (pumps, implants, MRI), the UH grade magnet guarantees decades of stability, which is critical for patient safety.
Case study
A guide for purchasing managers (B2B)
When price charts go vertically up, emotions are the worst advisor. During a raw material boom, it is easy to make mistakes and act under stress. Many buyers yield to pressure, executing panic purchases at the very peak, abandoning their original plan. The key to surviving in such an unstable market is iron discipline and sticking to a long-term strategy.
- When to buy? Execute orders in a contract model (quarterly), averaging the price. Do not block all your capital at the peak.
- How to negotiate? Ask for a quote on two variants: the current magnet and a smaller equivalent with GBD UH grade technology.
- Hedging (risk protection): Order from suppliers like DHIT. Thanks to our direct connection with our factory in China and a huge buffer warehouse in Poland, we are able to freeze the price for a specific production batch in advance.
Forecasts for the second half (H2) of 2026
Optimistic scenario: The launch of new refining lines outside China (e.g. facilities in Australia and the USA) and the stabilization of supply chains may trigger a correction and a 20-30% price drop relative to historical maximums from May.
Pessimistic scenario: If mass production of humanoid robots exceeds the one million unit mark faster than estimated, the market will experience a severe supply deficit, blocking access to UH/EH grades for smaller entities.
Expert commentary
"The current crisis is teaching the industry humility. This is not the time to wait for prices to fall back to 2024 levels – that train has already left. The companies that win this race are the ones that immediately redesign their devices alongside their suppliers, focusing on miniaturization and GBD technology. Material savings are the only true cost optimization today."
— expert in imports and magnetic technologies, DHIT Sp. z o.o.
FAQ – questions and answers
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niedziela 2026-05-10T12:00:00