Rare Earths Applications in Magnets
What is a magnet?
Magnet is the main component in electrical products that produce a magnetic field. A magnetic field is invisible but is responsible for a force that pulls on other ferromagnetic materials, such as iron, and attracts or repels other magnets.
Rare Earths and their applications in Magnets
The magnets sector is the world largest end-use sector for rare earths, accounting for around 24% of the total rare earths consumption. We expect that demand for magnets will grow relatively higher compared to other rare earths’ end-use sectors in the coming years. The magnets sector will be mainly driven by digital technology and clean energy products.
Neomagnets (NdFeB), which is the most commonly used type of rare earths magnet, has replaced other types of magnets in various applications in modern electrical products that require strong permanent magnets. Due to their superior magnetic flux density, NdFeB magnets are in high demand for small and large motors and generators, for instance, disc drives in computers, windows in automobiles, electric cars, wind turbine generators etc.
Wind energy hugely relies on permanent magnets, and one tonne of Nd is required for every five permanent magnet motor installed. There are some concerns that due to high rare earths prices, the green technology sectors will be exploring alternatives to avoid the high cost of production and supply disruption in rare earths. However, we understand that substitutions for NdFeB are currently available, though they will prove more expensive in the long run.
The future of hybrid and electric vehicles indirectly depends on the rare earths. We understand that the global hybrid and electric vehicles penetration rate will show some growth in the coming years which will support the consumption of the rare earth. Hybrid and Electrical vehicles require 15kg of La2O3, 1-1.5 kg of Nd2O3, and 0.1 kg of Dy2O3.
Commodity Inside estimates that magnets consume 22.4% of Pr, 69.6% of Nd, 0.8% of Sm, 2% of Gd, 0.2% of Tb and 5% of Dy. There is also a risk that some of these rare earths will be undersupplied in the long run sending prices to a high plateau.
There are two components within hybrid vehicles: one is the nickel-metal hydride battery, which uses lanthanum metal, and the other use permanent rare earth magnets, which primarily use neodymium. It is expected that the battery side of the hybrid vehicle is likely going to change to lithium-ion in the long term. However, until the lithium-ion technology is fully developed, the nickel-metal hydride batteries will be indispensable.
Moreover, one thing that cannot change in electric vehicles or hybrid vehicles, and that is the use of permanent rare earths magnet.
Despite high prices of some of the rare earths used in magnets, demand for magnets is expected to be driven by high use in electronics and clean energy products.
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