The main application of high-performance neodymium iron boron magnetic materials in traditional cars is electric power steering (EPS), which plays a crucial role in vehicle stability, comfort, and safety. Automotive power steering systems can be basically divided into three categories, namely mechanical hydraulic power steering system (HPS), electronic hydraulic power steering system (EHPS), and electric power steering system.

The development of EPS steering system in China's automotive industry is slightly later than that of developed countries in Europe and America. In recent years, the penetration rate of EPS in China's passenger car market has rapidly increased, reaching 96.2% by 2020. However, the commercial vehicle steering system is still mainly composed of HPS and EHPS. Although HPS and EHPS have lower costs, they consume a lot of energy and are prone to damage. Therefore, with the increasingly strict requirements for energy conservation and emission reduction, they will gradually be replaced by EPS in the future.

The automotive market in Europe and America has reached a mature stage, with EPS penetration rates ranging from 85% to 90%. Therefore, there is still room for improvement in the EPS penetration rate of the domestic automotive market in the future, driving the growth of demand for high-performance neodymium iron boron.

In 2021, the automotive market began to recover, with China's automobile production reaching 26.057 million units, an increase of 3.5% year-on-year; The sales volume was 26.248 million units, an increase of 3.9% year-on-year. It is expected that China's automobile production will continue to grow at a compound annual growth rate of 4% from 2022 to 2025. According to the calculation that each EPS system requires 0.25kg of high-performance neodymium iron boron magnetic material, the global demand for high-performance neodymium iron boron in the traditional automotive industry will exceed 21000 tons by 2025.