This anhydrous compound is a mauve-colored solid that rapidly absorbs water on exposure to air to form a purple-colored hexahydrate, NdCl3·6H2O.

Neodymium(III) chloride is produced from minerals monazite and bastnäsite using a complex multistage extraction process.

The chloride has several important applications as an intermediate chemical for production of neodymium metal and neodymium-based lasers and optical fibers.

The resulting hydrate, like many other neodymium salts, has the interesting property that it appears different colors under fluorescent light- In the chloride's case, light yellow (see picture).

[5] NdCl3 is a soft paramagnetic solid, which turns ferromagnetic at very low temperature of 0.5 K.[6] Its electrical conductivity is about 240 S/m and heat capacity is ~100 J/(mol·K).

The process is however easier for neodymium than for other lanthanides because of its relatively high content in the mineral – up to 16% by weight, which is the third highest after cerium and lanthanum.

[10] Many synthesis varieties exist and one can be simplified as follows: The crushed mineral is treated with hot concentrated sulfuric acid to produce water-soluble sulfates of rare earths.

The rare earth ions are then selectively washed out by suitable complexing agent, such as ammonium citrate or nitrilotracetate.

[9] This process normally yields Nd2O3; the oxide is difficult to directly convert to elemental neodymium, which is often the goal of the whole technological procedure.

However, modifying titanium oxide with neodymium(III) chloride allows catalysis under visible illumination, such as sun light.

In comparison with traditional chromium based corrosion inhibitors, NdCl3 and other rare-earth salts are environment friendly and much less toxic to humans and animals.

In particular, NdCl3 has been incorporated into organic molecules, such as DNA, which could be then easily traced using a fluorescence microscope during various physical and chemical reactions.

The LD50 (dose at which there is 50% mortality) for animals is about 3.7 g per kg of body weight (mouse, oral), 0.15 g/kg (rabbit, intravenous injection).