[News] From Rare Earth-Free Magnets to New Supply Chains: The Push to Break China’s Grip Accelerates

China’s tighter rare earth export restrictions are accelerating efforts to reduce dependence on the country’s supply chain. According to The Wall Street Journal, companies are pursuing a range of alternatives, from rare earth-free magnets and magnet-free electric motors to new magnet designs that reduce reliance on scarce heavy rare earths while maintaining comparable performance.

Industry Explores Alternatives to Rare Earths

Among them is Niron Magnetics, which produces rare earth-free magnets from iron and nitrogen. The company is expanding beyond its Minneapolis pilot plant with a larger facility in nearby Sartell and aims to reach annual output of 1,500 tons by 2028. The magnets are expected to see their first commercial application later this year in high-end speakers produced by a European manufacturer, according to The Wall Street Journal.

Meanwhile, as the report notes, ZF Friedrichshafen, headquartered in Germany, has developed a magnet-free EV motor that could reduce dependence on rare earth materials. Unlike conventional magnet-free designs, which tend to be larger, ZF’s I2SM motor uses induction to power the rotor without brushes, resulting in a smaller and lighter design. The company says the technology is ready for mass production and could be adopted in commercial EVs within a few years.

The report also highlights efforts by Daido Steel to reduce reliance on scarce heavy rare earths. The company has developed a permanent magnet that uses only more abundant light rare earths while delivering performance comparable to conventional magnets. The technology is used in applications ranging from semiconductor manufacturing equipment and MRI scanners to automotive power steering systems and electric windows, and has already been adopted by Honda in some hybrid vehicle motors.

Supply Chain Diversification Gains Momentum

The response has extended beyond new technologies to supply-chain localization. According to Reuters, in June, USA Rare Earth secured access to up to US$1.6 billion in CHIPS Act funding to support the development of a domestic rare earth supply chain. The company also announced plans to invest US$1.2 billion in a South Carolina facility focused on rare earth metals and magnet production, highlighting growing efforts to build non-Chinese sources of critical materials.

Governments are also taking steps to reduce supply-chain concentration. Reuters notes that the European Commission in June said it was considering rules that would require companies in sensitive sectors to diversify sourcing and reduce dependence on single suppliers, particularly in critical minerals supply chains.

Read more

• [News] China’s Rare Earth Compound Exports Fell 17% in Value; Alternative Supply Chains Gain Momentum
  
• [News] MLCC Giant Murata Reportedly to Decouple China Rare Earth Supply in 3 Years as Risks Rise

(Photo credit: GRINM Advanced Materials)