Germany’s well-established electronics industry, encompassing both manufacturing and R&D of electronic components and devices, is driving a growing demand for permanent magnets. As the use of electronic devices continues to grow, so does the demand for high-performance magnetic materials. According to Germany Trade and Invest GmbH, the country's electrical and digital sector experienced a 13.4% year-on-year increase in August 2022. Additionally, data from Statistisches Bundesamt projects that revenue from the production of electric motors, generators, and transformers in Germany will reach approximately US$19.5 billion by 2025. This growth in the electrical and electronics sector is directly contributing to the increased demand for permanent magnets.
Germany’s automotive industry, one of the largest in Europe, is also undergoing significant transformation with a strong shift toward electric mobility. The rise in electric vehicle (EV) production has sharply increased the need for high-efficiency permanent magnets used in EV motors. In support of this transition, Germany’s Federal Office for Economic Affairs and Export Control (BAFA) approved subsidies for the purchase of 2 million electric vehicles as of September 2023, backed by an investment of US$10 billion. This initiative further reinforces the rising demand for permanent magnets in the country’s automotive sector.
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