Precautions
Neodymium metal dust is a combustion and explosion hazard. Neodymium compounds, as with all rare earth metals, are of low to moderate toxicity; however its toxicity has not been thoroughly investigated. Neodymium dust and salts are very irritating to the eyes and mucous membranes, and moderately irritating to skin. Breathing the dust can cause lung embolisms, and accumulated exposure damages the liver. Neodymium also acts as an anticoagulant, especially when given intravenously.
Neodymium magnets have been tested for medical uses such as magnetic braces and bone repair, but biocompatibility issues have prevented widespread application. Commercially available magnets made from neodymium are exceptionally strong, and can attract each other from large distances. If not handled carefully, they come together very quickly and forcefully, causing injuries. For example, there is at least one documented case of a person losing a fingertip when two magnets he was using snapped together from 50 cm away.
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