Do they require neodynium permanent magnets? AFAIK, there are generators (including big generators at hydroelectric power plants) which use electromagnets instead. The same applies to electric motors; there are some which use permanent magnets, and some (induction motors) which don't.
They don't either, it's just that PMG turbines are somewhat more preferred if you can build them. If you can't, nothing prevents you from building turbines with induction generators.