As China tightens its supply of rare earth materials, foreign companies are speeding up their research and development of alternative products, according to a report by The Wall Street Journal on Tuesday, June 2.
Three representative foreign companies have expressed that they have found countermeasures and are committed to reducing their reliance on China-dominated key minerals.
Niron Magnetics, a US startup company, manufactures magnets that do not require the use of any rare earth materials, with its basic materials being only iron and nitrogen.
Established after receiving funding from the US Department of Energy in 2013, Niron Magnetics aims to commercialize this technology. At that time, the Chinese government restricted rare earth exports to Japan citing the Diaoyu Islands dispute, showcasing the potential threat of China’s rare earth control to the global community. This prompted the US government to invest in finding reliable alternatives for rare earth magnets.
The company’s pilot plant in Minneapolis can produce several tons of magnets annually, and they have recently started constructing a much larger facility in nearby Sartell.
CEO Jonathan Rowntree hopes that by 2028, the annual production capacity of the facility can reach 1,500 tons. Rowntree revealed that the first commercial product using Niron magnets is expected to be launched later this year, a high-end speaker produced by a European manufacturer.
He anticipates that with the rapid development of applications such as robotics and AI hardware, the demand for magnets across various industries will soar.
“In the next 10 years, the global demand for magnets needs to triple. However, existing rare earth reserves are not even enough to double this growth. We are facing a crisis. We need a reliable, secure supply of magnets,” he told Hua Daily.
German company ZF Friedrichshafen has developed an electric motor for automobiles that does not use any magnets. The company produces high-tech components for cars and trucks.
Car manufacturers including BMW and Renault have also developed electric motors with similar working principles that utilize carbon graphite brushes sliding on the rotor for power. However, the size of these motors is typically larger compared to regular electric vehicle motors.
Otmar Scharrer, Senior Vice President of ZF Friedrichshafen’s E-Mobility division, told Hua Daily, “This significantly reduces supply chain risks.”
ZF Friedrichshafen has stated that they are ready to mass-produce this motor for new car models. Analysts believe that within a few years, these motors could be used in electric vehicles.
Due to Beijing’s control over global rare earths, especially in heavy rare earth elements, which are mainly mined in China and scarce elsewhere, China also dominates in rare earth extraction and processing.
Magnets containing neodymium and other rare earth elements tend to overheat in high-tech and high-temperature environments such as car engines, leading to a loss of magnetism. Therefore, the solution was to add a certain amount of “heavy” rare earth elements like dysprosium and terbium to ensure magnetic performance under high temperatures.
Following the 2010 wake-up call, engineers at Daido Steel in Japan began researching whether magnets containing only “light” rare earth elements could be manufactured. These rare earth elements have richer reserves and are also mined in places like Australia.
So far, the company has successfully developed light rare earth magnets that do not contain heavy rare earth elements but have performance comparable to standard permanent magnets.
Reportedly, Japanese car manufacturer Honda is using these heavy rare-earth-free magnets in the electric motors of some of its hybrid vehicles.