In addition to hot-pressed magnet and high abundant rare earth permanent magnet, anisotropic bonded magnet is also regarded as a solution to fill the (BH)max gap between isotropic bonded Neodymium magnet and sintered Neodymium magnet. Anisotropic NdFeB powder is the foundation of anisotropic bonded magnet production.

Anisotropic NdFeB powder can be manufactured by either HDDR process or crushing hot-pressed magnet. HDDR NdFeB powder has more stringent requirements on the hydrogen pressure and temperature parameters during HDDR treatment. Japanese magnet enterprise Aichi Steel pioneered the development of HDDR powder and introduced relevant anisotropic bonded magnet to the market. Chinese powder manufacturers also made certain progress in this area. Magnequench is the only manufacturer to produce anisotropic NdFeB powder by crushing hot-pressed magnet. Magnetic properties and thermal stability of their product are roughly the same as HDDR NdFeB powder.