Ex-China rare earths magnet producers move to secure supplies of raw materials

Key takeaways:

• Western producers accelerate efforts to secure rare earth magnets amid China export controls
• Key deals signed for NdFeB magnet and critical raw materials sourcing outside China. This reflects the importance of rare earth magnets production in today’s market.
• New rare earth magnet partnerships aim to strengthen global supply chain resilience

Rare earths permanent magnet producers outside China have accelerated their drive to secure the critical raw materials required to underpin rare earth magnets production. They have done this through recent deals and milestone agreements, Fastmarkets understands.

Junior critical minerals producer Australian Strategic Materials (ASM) announced in July that it had achieved its first commercial sale of heavy rare earths metals. It shipped 2 kg lots of terbium and dysprosium metals to Magnequench, the magnet-making subsidiary of specialty materials company Neo Performance Materials.

Global push to secure rare earth magnets intensifies

And Korean biotech and rare earths magnet company JS Link recently signed a Memorandum of Understanding (MoU) with rare earths producer Lynas Rare Earths. It made this announcement in August.

That MoU will see the companies cooperate on securing rare earths raw materials for Neodymium Iron Boron (NdFeB) permanent magnets. Furthermore, they plan to establish a 3,000 tonnes per year permanent magnet plant near the Lynas Rare Earths facility at Kuantan on the east coast of Peninsular Malaysia.

New partnerships aim to strengthen production outside China

The rush in upstream dealmaking has been matched by a similar drive downstream. This week, US rare earths magnet manufacturer Noveon Magnetics announced it had signed a multi-year supply agreement to provide NdFeB magnets to automotive manufacturer General Motors. This agreement highlights the growing importance of rare earth magnets for the automotive industry.

Western rare earth magnet consumers have been scrambling to secure supplies of critical magnets. This came after China introduced export controls on several heavy and medium rare earths, as well as the magnets that contain them.

The potential for a supply shock is daunting for market participants across the supply chain. This is true for high-temperature rare earths permanent magnets and other sectors where the materials are essential.

To reflect the changing landscape, Fastmarkets has announced the expansion of its European heavy rare earths pricing suite to track market developments. From August 7, price assessments will be published for yttrium oxide 99.999%, dysprosium oxide 99.5% and terbium oxide 99.99%.

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