Neodymium: the Elephant in the Room

by B.S.D Mistry

There has been a news story doing the rounds for about a year now concerning the sources and usage of Neodymium in green technology products. Neodymium is a rare earth element, which when combined in an alloy with iron and boron forms the strongest known type of permanent magnet. The fact that the magnet flux in this material is so strong means that for a relatively light weight, you get a powerful magnet.

As a result, this relatively unknown material has become ubiquitous in hard drives, computers and now green technology hybrid vehicles. The vehicles use these magnets in their DC servomotors. Wind turbines use the magnets in their generators.

Rare earth elements and minerals were mined in the US and Australia until the early 90′s when China started exporting the minerals in abundance and flooded the market. Nearly all mines outside of China have ceased operation and China now controls over 90% of the world’s supply, of which the exported quantity has now fallen by about 40% since 2002. Whilst global demand is booming, last year china exported 31,000 tonnes, only a quarter of global demand.

China now has the technical know-how to produce Neodymium Iron Boron magnets. With exports falling and China green technology manufacturing experiencing a domestic boom, the writing is on the wall: if you use rare earth magnets in your products, then it’s advantage to China-based manufacturers. At least, until foreign mines re-open.

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Further Reading:  China Out to Dominate in Electric Cars, From Dependence on Oil to Chinese Neodymium, Concern as China C;amps Down on Rare Earth Exports, Japan Asks China to Relax on Rare Earth Exports, EENews.net