Most of the world's commercial neodymium is mined in China, as is the case with many other rare-earth metals.

Neodymium compounds were first commercially used as glass dyes in 1927 and remain a popular additive. The color of neodymium compounds comes from the Nd³⁺ ion and is often a reddish-purple. This color changes with the type of lighting because of the interaction of the sharp light absorption