Neodymium magnet was firstly developed in 1982 by General Motors and Sumitomo Special Metals^[1][2][3]. GM focused on the development of melt-spun nanocrystalline Nd2Fe14B magnets, while Sumitomo developed full-density sintered Nd2Fe14B magnets.Chinese manufacturers have become a dominant force in neodymium magnet production, based on their control of much of the world's sources of rare earth mines.The United States Department of Energy has identified a need to find substitutes for rare earth metals in permanent magnet technology, and has begun funding such research.

Neodymium magnet is the most widely used^[4] type of rare-earth magnet, is a permanent magnet made from an alloy. There are two principal neodymium magnet manufacturing methods. The first is classical powder metallurgy or sintered magnet process^[5]. Sintered Nd-magnets are prepared by the raw materials being melted in a furnace, cast into a mold and cooled to form ingots.The second is rapid solidification or bonded magnet process. The ingots are pulverized and milled; the powder is then sintered into dense blocks. Lastly, the blocks are then heat-treated, cut to shape, surface treated and magnetized.

Due to its higher remanence, much higher coercivity and energy product, greater strength^[6] which allow the use of smaller, lighter magnets for a given application, neodymium magnets have replaced alnico and ferrite magnets in many of the myriad applications in modern technology where strong permanent magnets are required, such as motors in cordless tools, hard disk drives and magnetic fasteners. In addition, the greater strength of neodymium magnets has inspired new applications in areas where magnets were not used before, such as magnetic jewelry clasps, children's magnetic building sets (and other neodymium magnet toys) and as part of the closing mechanism of modern sport parachute equipment.

[1]Lucas, Jacques; Lucas, Pierre; Le Mercier, Thierry; et al. (2014). Rare Earths: Science, Technology, Production and Use. Elsevier. pp. 224–225. ISBN 978-0444627445.

[2]M. Sagawa; S. Fujimura; N. Togawa; H. Yamamoto; Y. Matsuura (1984). "New material for permanent magnets on a base of Nd and Fe (invited)". Journal of Applied Physics. 55 (6): 2083. doi:10.1063/1.333572.

[3]J. J. Croat; J. F. Herbst; R. W. Lee; F. E. Pinkerton (1984). "Pr‐Fe and Nd‐Fe‐based materials: A new class of high‐performance permanent magnets (invited)". Journal of Applied Physics. 55 (6): 2078. doi:10.1063/1.333571.

[4]"What is a Strong Magnet?". The Magnetic Matters Blog. Adams Magnetic Products. October 5, 2012. Retrieved October 12, 2012.

[5]"Manufacturing Process of Sintered Neodymium Magnets". American Applied Materials Corporation. Archived from the original on 2015-05-26.

[6]As hybrid cars gobble rare metals, shortage looms, Reuters, August 31, 2009.a