The Europe Rare Earth Magnet for EV Motor market size was valued at US$ 1.58 billion in 2024 and is projected to reach US$ 3.28 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 12.9% during the forecast period (2024–2030). This growth is fueled by rapid EV adoption, stringent environmental regulations, and technological advancements in permanent magnet motors.
As Europe accelerates its transition to electric mobility, the demand for high-performance rare earth magnets—critical components in EV motors—is surging. These magnets enable superior torque density and energy efficiency, making them indispensable for modern electric drivetrains. In this blog, we profile the Top 10 Companies in the Europe Rare Earth Magnet for EV Motor Industry—key suppliers driving innovation and supply chain resilience.
1. Vacuumsschmelze GmbH & Co. KG (VAC)
Headquarters: Hanau, Germany
Key Offering: Sintered NdFeB Magnets, Bonded Magnets
VAC dominates Europe’s rare earth magnet production, specializing in NdFeB magnets for EV traction motors. The company supplies major automakers including BMW, Mercedes-Benz, and Volkswagen with its vertically integrated manufacturing capabilities.
Key Advantages:
- 36% market share in European automotive applications
- Strategic joint ventures with Renault for localized supply
- Pioneering high-temperature resistant magnets for 800V EV systems
Download FREE Sample Report: Europe Rare Earth Magnet for EV Motor Market – View in Detailed Research Report
2. Umicore
Headquarters: Brussels, Belgium
Key Offering: Recycled Rare Earth Materials
Umicore leads Europe’s circular economy for rare earth elements through its advanced recycling technologies. The company provides sustainable magnet alloys while reducing dependence on primary mining operations.
Sustainability Leadership:
- 85% rare earth recovery rate from end-of-life products
- Partnerships with 14 European OEMs for recycled content programs
3. Arnold Magnetic Technologies
Headquarters: Sheffield, UK
Key Offering: Precision Sintered NdFeB Magnets
Arnold Magnetic Technologies specializes in high-precision magnets for premium EV applications. The company’s ISO/TS 16949-certified operations ensure automotive-grade quality standards.
Market Position:
- Leading UK supplier with 22% year-over-year growth
- Specialized solutions for performance and commercial EVs
4. SG Magnets
Headquarters: Mérignies, France
Key Offering: Custom Magnet Assemblies
SG Magnets excels in complex magnet geometries for axial flux motors, with proprietary coatings that enhance durability in demanding EV operating conditions.
Engineering Capabilities:
- ±0.01mm tolerance control precision
- 15 patents in magnet segmentation technology
Download FREE Sample Report: Europe Rare Earth Magnet for EV Motor Market – View in Detailed Research Report
5. Lynas Rare Earths Ltd.
European Operations: La Rochelle, France
Key Offering: High-Purity NdPr Metal
Lynas operates Europe’s sole rare earth separation facility, supplying 20% of the continent’s magnet raw materials with expansion projects underway.
Capacity Expansion:
- 500-ton/year NdPr production increase
- Long-term supply agreements with 7 European manufacturers
6. Hitachi Metals (TDK Corporation)
European Headquarters: Düsseldorf, Germany
Key Offering: NEOREC Series Magnets
TDK’s Hitachi Metals division produces advanced NdFeB magnets with minimized dysprosium content, enabling cost reductions for mass-market EV applications.
Technical Edge:
- 15% lighter solutions than industry standard
- Supplies 15+ European EV platform projects
7. Shin-Etsu Chemical
European Base: Berlin, Germany
Key Offering: High-Energy Density Magnets
Shin-Etsu Chemical manufactures NdFeB magnets with industry-leading energy products (≥52MGOe), crucial for next-gen EV motor torque density requirements.
Investment Plans:
- €120 million German facility expansion
- 40% European production increase by 2026
8. Beijing Zhong Ke San Huan (ZKS)
European Subsidiary: Budapest, Hungary
Key Offering: Cost-Optimized Sintered NdFeB
ZKS has established itself as a competitive Chinese supplier to Europe’s EV market through its strategic Hungarian manufacturing presence.
European Footprint:
- 5,000-ton annual production capacity
- Full IATF 16949 certification for automotive quality
Download FREE Sample Report: Europe Rare Earth Magnet for EV Motor Market – View in Detailed Research Report
9. Thomas & Skinner
European Operations: UK
Key Offering: Bonded NdFeB Magnets
Thomas & Skinner specializes in bonded rare earth magnets for EV auxiliary systems, offering net-shape manufacturing that eliminates machining waste.
Quality Assurance:
- ±0.5% magnetic consistency across production batches
- Custom solutions for space-constrained applications
10. Molycorp Magnequench
European Facilities: Estonia & Germany
Key Offering: MQP Bonded Magnet Powders
Molycorp Magnequench supplies critical raw materials for Europe’s bonded magnet producers, supporting hybrid EV motor development.
Material Innovation:
- 30% higher energy density anisotropic powders
- Formulation expertise for custom motor designs
Get Full Report Here: Europe Rare Earth Magnet for EV Motor Market – View in Detailed Research Report
Market Outlook: Electrification Through Advanced Magnet Solutions
The European rare earth magnet sector is undergoing significant transformation as automakers balance performance demands with sustainable supply chains. Direct drive motors, accounting for 72% of demand, continue to drive material innovation.
Critical Market Trends:
- Germany maintains 44% market share through automotive leadership
- 14.8% CAGR in premium EV segment magnet demand
- EU regulations incentivizing local production under Critical Raw Materials Act
- 18-22% cost reductions from dysprosium-free magnet development
Get Full Report Here: Europe Rare Earth Magnet for EV Motor Market – View in Detailed Research Report
The companies profiled represent the technological backbone of Europe’s electric vehicle revolution, combining material science expertise with sustainable production capabilities.
