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Neodymium magnets are powerful permanent magnets composed of the elements neodymium, boron and iron. These magnets have the highest known energy product for their mass. They consist of an intermetallic phase in a tertragonal crystal structure and their normal chemical composition is Nd2Fe14B. Although they rank as superior permanent magnets, they begin to lose their magnetism at temperatures above 80 degrees Celsius, so they are not suited to high-temperature applications. At 312 degree Celsius, they lose their magnetism altogether. In addition, they are highly susceptible to corrosion. These attributes, however, have not stopped neodymium-iron-boron from becoming the material of choice for many functions. Initially used in Japan for a wide range of electronic equipment, neodymium magnets are now found in computer hard drives, headphones, compact high-force magnetic assemblies and Halbach arrays. They are also used in medical equipment, such as magnetic resonance imagers, and acoustics.

One of the most appealing characteristics of neodymium magnets is their relatively low cost. Neodymium is the third most abundant rare-earth element, and is far more prevalent than samarium, the prime component of the samarium-cobalt magnets that neodymium magnets have largely replaced. They also tend to allow for reductions in size and have good resistance to external demagnetization fields. Although hard and brittle, neodymium-iron-boron can successfully undergo certain machining processes.

Care should be taken when handling neodymium magnets. Due to their powerful magnetic properties, they can destroy magnetic strips (credit cards) and various computer accessories and components. They are also highly subject to breakage and susceptible to excessive temperatures. Neodymium magnets have only been in use since their discovery in 1984, and scientists continue to search for new ways to increase their power.