News: US Launches $12 Billion "VOLT" Project, Partners with Poland To Build New Rare Earth Magnet Supply Chain
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In February 2026, the global rare earth magnet industry witnessed a major strategic move that could reshape the geopolitical supply chain landscape. The Trump administration officially launched the "VOLT" project on February 2, a $12 billion ambitious plan with the core objective of freeing the United States from dependence on China in the processing of rare earth elements (REEs) and building an independent, secure strategic supply chain. As a key part of this strategy, the United States made a specific cooperation proposal to Poland, aiming to establish Poland as its key strategic partner in Europe to jointly address China's dominance in the global rare earth market, particularly in downstream magnet manufacturing.
The backdrop of this project is China's control of approximately 60% of global rare earth mining and, more critically, up to 90% of rare earth processing capacity. This monopoly has been leveraged as a geopolitical tool on multiple occasions in the past. For instance, export restrictions to Japan in 2010 caused rare earth prices to soar by 500%, and similar measures in 2024 led to a 20-30% increase in the price of neodymium, a key raw material for NdFeB magnets. Consequently, the "VOLT" project is seen as the culmination of Western efforts to seek alternatives, with its funds focused on building strategic reserves of rare earths, investing in processing facilities both domestically and in allied countries, and promoting technological innovation to reduce dependence on specific rare earth elements.
According to industry forecasts from a direct distributor of NdFeB magnets, these geopolitical and investment actions are expected to have a direct impact on the price and availability of NdFeB magnets starting in 2026. Predictive models indicate that as project investments gradually materialize, the average price range for NdFeB magnets in 2026 is projected to be 95−110perkilogram∗∗,potentiallyfallingtoarangeof∗∗95−110perkilogram∗∗,potentiallyfallingtoarangeof∗∗85-100 per kilogram by 2027 due to the release of new production capacity and supply chain diversification. Although prices may see a slight short-term increase due to investment momentum, the diversification of the supply chain is expected to lead to more stable market availability and smoother price fluctuations in the medium to long term.
This event epitomizes the global magnetic materials market's entry into a "transformative decade of growth". Market research reports predict that driven by the dual forces of the global energy transition and the expansion of the AI-integrated robotics industry, the global magnetic materials market is shifting from a commodity-based landscape to a strategic resource frontier. Its market size is projected to grow from 39.01billionin2026toover39.01billionin2026toover90 billion by 2036. The electrification of mobility is a primary driver, with annual consumption of NdFeB magnets forecasted to surge from 2,800 tons in 2024 to nearly 25,000 tons annually by 2036, as annual EV sales approach 30 million units. Concurrently, the adoption of direct-drive offshore wind turbines (a single 16 MW unit can require up to 12 tons of NdFeB magnets) will also position the energy sector as a critical pillar of market stability.
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