Neodymium is the twenty-seventh most abundant element in the crust of the earth, with a concentration of not more than 28 parts per million (ppm), primarily occurring in the following minerals:
- Monazite is a yellow or reddish-brown phosphate mineral containing rare-earth metals such as thorium (Th), cerium (Ce), and neodymium (Nd).
- Bastnaesite is also a source of rare earth minerals. It has a yellow-brown colour.
Quick Overview of Neodymium
✔️A brief overview of neodymium (Nd)
✔️Neodymium’s discovery and production
✔️Investing in neodymium
Price drivers of the price of neodymium
Uses and applications of neodymium
Conclusion
A brief overview of neodymium (Nd)
Neodymium is categorised as a rare earth element, also known as a rare earth metal, together with sixteen other chemical elements. Neodymium and fourteen of the other sixteen elements are classified into the group of lanthanides on the periodic table of elements, while the remaining two rare earth elements (REEs) – scandium (Sc) and yttrium (Y) – are considered transition metals.
Although not included in the lanthanide group of elements, scandium and yttrium are also regarded as rare earth elements because they are found in the same mineral deposits as the lanthanides, possessing the same chemical properties.
The term ‘rare earth’ is misleading because rare earth metals (elements) are in fact available in large quantities in the crust of the earth. However, they seldom occur in large concentrated and mineable deposits on their own, but rather in combination with other minerals, making them significantly valuable and strategic metals.
The group of lanthanides
The group of lanthanides comprises fifteen chemical elements, including the following elements with names referring to certain countries or regions in the world:
- Europium (Eu), a name deriving from the European continent.
- Scandium (Sc), deriving its name from ‘Scandia,’ an ancient name for Scandinavia.
- Holmium (Ho), referring to the Latin name for Stockholm, ‘Holmia.’
Cerium (Ce), which was discovered in 1803 and named after the asteroid, which derived its name from Ceres the Roman goddess of fertility, agriculture, and harvest, is the most abundant of the lanthanides.
Neodymium is the second most abundant of the rare earth elements and lanthanides, almost as abundant as copper.
Some common properties of lanthanides
- Their atomic numbers range from 57 to 71.
- They are reactive metals.
- Appear silvery-white.
- Relatively soft metals, with hardness increasing slightly with increasing atomic numbers.
- High melting and boiling points.
- They burn easily in the air.
- Strong reducing agents.
- Lanthanides react easily with most nonmetals.
Properties of neodymium
- The atomic symbol on the periodic table: Nd.
- Atomic number: 60, referring to the number of protons in the element’s nucleus which equals the number of protons.
- Melting point: 1 021 degrees Celsius (1 869 degrees Fahrenheit).
- Boiling point: 3 074 degrees Celsius (5 565.2 degrees Fahrenheit).
- Density: 7.01 grams (g) per cubic metre (cm3).
Other characteristics of neodymium
- A soft, malleable metal, meaning it can be shaped, bent, or extend by a hammer or by the pressure of rollers.
- Its appearance is bright silvery-white.
- When reacting with water and acids, it releases hydrogen gas. It reacts slowly with cold water, but quickly with hot water.
- It quickly oxides in the air, creating a yellowish coating. However, this layer does not protect the metal from further oxidation.
- Neodymium is considered to be moderately toxic.
- It is solid at room temperature.
The name neodymium means ‘new twin,’ derived from two Greek words, namely ‘neos’ for new, and ‘didymos’ for twin.
Neodymium’s discovery and production
The discovery of neodymium
In 1885, Carl Auer von Welsbach (1858 – 1929), an Austrian chemist and entrepreneur, analysed a metallic mixture, referred to as didymium and considered an element since its discovery in 1841.
Von Welsbach discovered that didymium was not an element but a mixture of two other elements. He decided to name the newly-discovered elements praseodymium and neodymium with the following meanings:
- Praseodymium, literally ‘green twin,’ originates from the Greek words prasios (meaning ‘green’) and didymos (meaning ‘twin’), due to the pale green salts it creates.
- Neodymium, literally ‘new twin,’ derives from the Greek neos (meaning ‘new’) and didymos (‘twin’).
Why did Von Welsbach choose to include the Greek word for twin (didymos) in the names of both of his discoveries and specifically referred to neodymium as ‘new twin?’
To answer this question, we have to step back in history to 1841, which was the year in which the Swedish chemist and surgeon, Carl Gustav Mosander (1797 – 1858) discovered a metallic mixture of rare elements, which he believed to be a new element, almost similar to lanthanum, which he had previously discovered in 1839. Hence, Mosander named it didymium, meaning ‘twin’ in Greek.
By including the word ‘twin’ in the names of both his discoveries, Von Welsbach honoured the groundwork of Mosander regarding the discovery of the two elements.
Although Von Welsbach discovered neodymium, he never isolated it in pure form because of the crude equipment available to chemists at that time. The first pure samples of neodymium were only produced in 1925.
Production of neodymium
Neodymium is primarily mined as part of a conglomerate with other rare earth metals (elements) in the monazite and bastnaesite (also spelled bastnäsite) mineral deposits.
After the mining process, the rare earth metals must be refined and separated into individual metals for their specific applications.
A variety of techniques are available to extract and refine neodymium, namely:
- Ion exchange and solvent extraction.
- By reducing anhydrous (containing zero water (H2O) molecules) neodymium chloride of fluoride with calcium.
Other techniques to extract the element are known and possible.
The following information regarding the global production and reserves of neodymium is obtained from an article (published on November 23, 2025) by Visual Capitalist.
As with many other elements, China tops the list of the global annual products of rare earth elements (REEs), producing 140 000 tonnes, followed by the USA (38 000 tonnes), Burma (30 000 tonnes), Australia (17 000 tonnes), and Madagascar (8 000 tonnes).
The reserves of REEs of the five countries mentioned above are as follows:
- China (44 000 000 tonnes)
- USA (1 500 000 tonnes)
- Burma (Data not available)
- Australia (4 100 000 tonnes)
- Madagascar (Data not available)
Noteworthy, the two countries which are second and third on the list of rare earth metals reserves, only produced 1 000 tonnes of REEs each: Vietnam (reserves of 22 000 000 tonnes) and Brazil (21 000 000 tonnes).
Number four on the list, Russia with reserves of 12 000 000 tonnes, produced 2 700 tonnes, while India, number five on the list with REEs reserves of 6 900 000, produced 3 000 tonnes.
Only six state-run companies in China have production quotas to mine rare earth metals, namely:
- China Minmetals Rare Earth Co
- Chinalco Rare Earth & Metals Co
- Guangdong Rising Nonferrous
- China Northern Rare Earth Group
- China Southern Rare Earth Group
- Xiamen Tungsten
Although possessing reserves of 1.5 million tonnes, the United States is largely dependent on China for rare earth metals. Mining.com pointed out that the ‘Mountain Pass mine in California, controlled by Materials Corp, is the only active rare earth mine in the United States.’
In South Africa, the Steenkampskraal mine comprises fifteen rare piles of earth, including approximately 15 630 tonnes of neodymium. Praseodymium and neodymium represent 74 percent of the total economic value of the reserves of rare earth metals at the mine.
Steenkampskraal mine, located 50 kilometres east of Bitterfontein in the Western Cape province of South Africa, has the highest grade of rare earth elements (REEs) in the world.
Investing in neodymium
Similar to other metals, rare earth metals, including neodymium, are commodities, meaning they are subject to the fluctuations in supply and demand that economic cycles bring. In the sense that commodity prices are always volatile, rare earths are no different from other commodities such as oil and gas.
There are few options available to invest in rare earth metals. A case in point is that it is not possible to buy physical rare earth metals. In addition, a few exchange-traded funds (ETFs) provide exposure to the metals.
The most direct way to get exposure to the rare earths industry is to invest in companies involved in the mining and exploration of rare earth metals. Examples of companies that focus on rare earth metals are, among others:
Traded on the Australian Securities Exchange (ASX)
- Alkane Resources
- Hastings Technology Metals
- Greenland Minerals and Energy
Traded on the Toronto Stock Exchange (TSX)
- Neo Performance Materials
Traded on the TSXV Venture Exchange, headquartered in Calgary, Alberta, Canada
- Namibia Critical Metals
- Search Minerals
Also, numerous such companies are located in China but are not publicly traded. Although, there are some that are accessible.
The names of more companies can be obtained from a regulated commodity broker. In fact, in order to invest in rare earth, you are required to use a commodity broker, as is the case when investing in other types of commodities.
Another method to trade rare earth metals is to invest in an exchange-traded fund such as the VanEck Rare Earth/Strategic Metals ETF (REMX®).
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Price drivers of the price of neodymium
One of the major factors involved in the price of rare-earth metals, including neodymium, is the dominance of China in the rare earth metals industry. The country plays a major role in the supply chain, producing 85 percent of the refined rare-earth in the world in 2025, enabling the Chinese government to control the global availability of these valuable metals.
Noteworthy, the share of China’s global production has plummeted from 92 percent in 2010 to less than 58 percent in 2025.
China’s tight control of the supply of these crucial metals forced countries around the world to diversify their supply source for rare earth metals.
Also, the important role rare earth metals, such as neodymium and praseodymium, play in technology, clean energy technologies, and in the transition to greener economies in countries, causes a significant increase in the demand for them.
For example, the growing demand for wind turbines to produce wind energy in the world expands the market for neodymium.
Uses and applications of neodymium
Neodymium and its compounds are used in a variety of ways, such as:
- Neodymium is the key and crucial component in the manufacturing of neodymium-iron-boron magnets also referred to as NIB magnets. These magnets are considered powerful permanent magnets which are most widely used in the electric motors of electric vehicles (EV) and hybrid vehicles (HEV).
In addition, NIB magnets are used in hard disk drives of computers, smartphones, medical devices, wind turbine generators, audio systems, and electronic automotive components, to name a few.
- Neodymium is also a component of didymium glass, which is used to manufacture specialised goggles for welders and glass blowers.
- Misch metal, which is used to make lighter flints, comprises about 18 to 20 percent neodymium.
- Some neodymium salts are used to colour enamels.
- Neodymium can be used to remove the green colour in the glass caused by iron contamination. Furthermore, it can be used to colour glass in several shades, ranging from pure violet to deep red and tones of warm grey.
- Some types of glass comprising neodymium are used in astronomical work to create sharp absorption bands in order to calibrate spectral lines.
- It is also used as a specific crystal in lasers which are widely used in military applications. They are also applied to treat skin cancers. In commercial applications, lasers are used to cut and weld steel.
In conclusion
Neodymium is classified as a rare earth metal. Not because of its scarcity in the earth’s crust, but because it is extremely valuable in clean energy technologies and difficult to be mined and refined.
Therefore, it is important to save the metal, using ways advocated by the American Chemical Society (ACS), of which the following suggestions are examples:
- By chemists
- ‘Design electronics with end-of-life recycling in mind.
- Develop recycling capability to recover REEs from permanent magnets.’
- By individuals
- ‘Think twice before upgrading or buying new electronics.
- Consider reuse and recycling options when discarding electronic waste.’
Note: This article does not constitute investment, financial, or trading advice. Please obtain the advice of a professional and regulated commodity broker before making trading and investment decisions.
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