Market

Enabling Advanced Technologies

Permanent magnet REE will continue to be used in many of the daily products we have come to rely on in our lives, such as our household goods, computers, smartphones and speakers. However, there are also exciting new markets emerging that are primed for exponential growth, particularly robotics and advanced air mobility. Both sectors use significant amounts of REE permanent magnets in order to provide power, efficiency and functionality benefits.

Robotics

The world could be seen to be on the cusp of a robotics revolution, fuelled by years of innovation, cost reductions and expanding applications that promise to redefine industries and societies.

Industrial robots are already a growing feature driving automation in factories across the world. However, it is the market for humanoid robots, designed to mimic human appearance and capabilities, that is poised to lead a transformative technological shift as technology continues to advance and production continues to scale rapidly.

Demand for robots is being driven by the desire for increased automation and efficiency, labour shortages, demographic shifts towards aging populations that need assistance and personal care, and the potential for use across sectors as diverse as retail, defence and space.

Elon Musk has famously predicted that there will be 10 billion humanoid robots by 2040, potentially exceeding the human population. Adamas Intelligence notes that other commentators have predicted up to 100 billion robots by 2040, reflecting a world where robots are integral to daily life and work.

Currently, the global market for humanoid robots is valued at around $3 billion in 2024. Goldman Sachs projects a $38 billion market by 2035, while Morgan Stanley estimates potential for $357 billion by 2040.

The energy efficiency, torque, power density and smooth torque curve of REPM are important factors for robotics, driving a low substitution risk. REPM intensity can range from 5 to 15kg depending on the type of robot, but it is predicted that the robots of tomorrow will use even higher amounts of rare earth motors in order to facilitate ever more sophisticated movement.

Industrial and consumer robotics are estimated to represent 1% of REPM demand in 2023 but as technology advances, it is expected that growth rates will accelerate, and analysts are forecasting that REPM demand for robotics could surpass that of EVs over the long term.

NdFeB Magnet Demand

Advanced Air Mobility

Advanced air mobility is another relatively new market poised for rapid growth. The sector includes recreational and commercial drones, with technical advances allowing for increasing payloads and corresponding applications.

In addition to the growing consumer drone market, commercial drones are already in use for delivery services. According to McKinsey, 2022 saw more than 2,000 commercial drone deliveries take place daily across the globe. According to Gartner, global retail deliveries by drones will top 1 million per annum by 2026, with that figure rising exponentially in the years to come.

Advanced air mobility also encompasses electric vertical take-off and landing (“eVTOL”) technology, being aircraft that use electric power to hover, propel, take off and land vertically. This technology is expected to allow low-cost commercial flights, such as airport transfers, to launch in the coming years.

Emerging eVTOL technology requires higher power output per kg for motors, which is expected to correspond to higher magnet REE intensity than passenger EVs, which could become a material driver of demand in the next decade as prices come down, applications expand and sales rise.