Tesla's Optimus Faces Neodymium-Boron Supply Challenges for Humanoid Robot Production

During the launch of the second generation of Tesla's Optimus, Elon Musk emphasized the importance of cost control, aiming to reduce the price per unit to below $20,000. A report by Bernstein highlighted the critical role of neodymium-boron in the production of humanoid robots, noting that each robot requires high-power density motors for its 40 to 50 servo joints.

Neodymium-boron is essential for motor performance, but high temperatures pose a significant challenge as standard materials can demagnetize. To enhance performance, rare earth elements like dysprosium and terbium are added, but these are scarce and expensive. If humanoid robots reach mass production levels of one million units, the annual demand for neodymium-boron could surge to 35,000 to 40,000 tons, equivalent to the magnetic material needs of 12 to 15 million electric vehicles.

China dominates the global rare earth supply chain, controlling 59% of mining and 94% of permanent magnet production. As export controls tighten, particularly on heavy rare earths, international manufacturers face compliance risks, even when establishing processing facilities outside China. No further timeline was disclosed at the time of publication.