NdFeB permanent magnet material is the core manufacturing material of permanent magnet drive motor for new energy vehicles. The drive motor of new energy vehicles is divided into DC permanent magnet motor and AC synchronous permanent magnet motor. Due to high energy efficiency, small size, safety and reliability, DC permanent magnet motor is suitable for use in scenarios where the speed changes frequently, and its technical requirements are relatively low. At present, it is the main type of driving motor for electric vehicles; High performance AC synchronous permanent magnet motor can quickly penetrate the market by virtue of its excellent comprehensive performance, large power and torque. The two together account for about 95% of the current drive motor of new energy vehicles.

New energy vehicles are an important industry that is strongly supported and developed by all countries in the world. In 2021, the global total sales of new energy vehicles will be 6.75 million, with a year-on-year growth of 108%. Some countries have issued a timetable for banning the sale of fuel vehicles and new energy vehicle subsidy policies and development goals. In recent years, China has gradually attached importance to the development of the new energy vehicle industry, actively promoted the popularization of new energy vehicles, and accelerated the pace of replacing traditional vehicles. The Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Science and Technology issued the Medium and Long Term Development Plan for the Automotive Industry in April 2017, proposing to accelerate the technology research and development in the fields of new energy vehicle drive motors and control systems, increase the promotion and application of new energy vehicles, and improve the penetration rate of new energy vehicles, By 2025, new energy vehicles will account for more than 20% of automobile production and sales. Under the guidance and encouragement of macro policies, China's new energy vehicle industry shows a trend of rapid development. According to the data of the China Automobile Association, the production and sales of new energy vehicles in China will reach 3.545 million and 3.521 million respectively in 2021, with a year-on-year growth of 157%.

At present, there is still a gap between China's per capita car ownership and that of developed countries, which has brought huge potential demand for the development of new energy vehicles in China in the future. According to the calculation of Guolian Securities, by 2025, China's new energy vehicle drive motor market space will reach 36.138 billion yuan, and the CAGR in five years will be 54.6%. The permanent magnet drive motor of new energy vehicles will become an important downstream increment of permanent magnet materials.