Rare Earth Permanent Magnet Supply Chain and Technology Advances Overview

"Rare earth permanent magnets (REPM) have become virtually indispensible in hundreds of applications including aerospace, automotive, electronics, energy, medical and military. An understanding of REPMs is important since they are key drivers of demand for the overall rare earth sector. Rare earth permanent magnets stand out due to their superior magnetic properties of high induction and coercive force. We will discuss the past, current and future of the permanent magnet market and supply chain. We will summarize present and potential new nanocomposite and lower content or non rare earth magnet technologies and customer options which may mitigate rare earth usage.INTRODUCTIONRare earth permanent magnets are ubiquitous and often unseen critical components in many civilian, green energy and military technologies. They have become imbedded in applications such as hybrid electric vehicles, computer hard drives, direct-drive high power wind generators, audio speakers, motors, energy conversion systems, most weapons systems and hundreds of other uses. Several rare earth elements including neodymium, samarium, dysprosium, praseodymium, terbium and gadolinium are essential ingredients in production of the highest performance magnets available in the world today. They have enabled vast miniaturization and the significant increase in power density in hundreds of applications.China has become the dominant source of rare earth elements over the last two decades. Today, nearly 100 percent of the world’s rare earth metals and more than 95 percent of the rare earth oxides come from China. China’s near worldwide monopoly on the production of downstream materials such as rare earth oxides, metals and magnets severely impacts the supply chain in this growing global market. The past decade has seen an unmistakable trend toward increased dominance in raw material production and manufacturing by China, and a steep decline in U.S. production capabilities, most notably in the neodymium iron boron (Nd-Fe-B) market where there is currently no domestic production. This Chinese dominance is further demonstrated with over 65 percent of hard ferrite and roughly half of aluminum nickel cobalt (Alnico) and samarium cobalt (Sm-Co) production in that nation (Figure 1). In addition, China has imposed export quotas and export taxes of up to 25 percent for rare earth elements, arguably in violation of their covenants made with their protocol of accession to the Word Trade Organization. These export quotas have been decreasing steadily over the last several years in spite of rising global demand and were slashed by 72 percent in July 2010 (Bradsher, 2010) causing many recent news stories."