Used primarily in the preparation of neodymium oxide (via calcination) for manufacturing powerful neodymium-iron-boron (NdFeB) permanent magnets, which are essential in high-performance motors, generators, and electronic devices such as headphones, speakers, and hard disk drives. Also employed in specialized glass and ceramic coloring, where it provides distinct purple to red hues and helps counteract unwanted green tints from iron impurities. Due to neodymium oxide's selective light absorption properties, it is used in optical applications like special lenses and glasses for filtering specific wavelengths, such as in laser devices or radiation protection eyewear. Plays a role in the purification and separation of rare earth elements due to its low solubility, facilitating precipitation processes. Additionally, investigated for use in certain catalytic applications, luminescent materials, and materials science research to develop new compounds with specific magnetic or optical properties.