Rare-earth elements such as neodymium, praseodimio, disposio, and terbium are critical raw materials for high-performance NdFeB (neodimio-hierro-boro) imanes permanentes. Neodymium and praseodymium are primarily used to form the main phase responsible for high magnetic properties, while dysprosium and terbium are employed to boost the coercivity of certain high-temperature grade magnets.
The growth of sectors such as new energy vehicles, energía eólica, robótica, energy-efficient home appliances, and industrial motors continues to drive up the demand for rare-earth materials used in magnets. Data from the International Energy Agency (IEA) indicates that demand for these rare-earth elements has doubled since 2015 and is projected to grow by approximately another third by 2030 under current policy conditions.
Against a backdrop of rising global demand, concentrated resource distribution, and fluctuating raw material prices and supply-demand dynamics, permanent magnet enterprises must continuously strengthen their capabilities in raw material security, technological innovation, and supply chain management.
I. What are the impacts of fluctuations in raw material supply?
Primero, changes in the supply-demand balance for raw materials can lead to price volatility. Concerns regarding supply stability may prompt enterprises to increase purchasing or inventory levels, thereby further amplifying short-term price fluctuations.
Second, raw material delivery lead times may become unstable. Para high-coercivity magnets requiring heavy rare earths like dysprosium and terbium, supply delays directly impact batching, fundición, and customer delivery schedules.
Third, customers may raise their requirements regarding material traceability and supply chain compliance. Clients in the automotive, energía eólica, and high-end industrial sectors are increasingly focused not only on magnet performance but also on raw material sourcing, responsabilidad ambiental, export compliance, and the ability to ensure a continuous supply.
II. Functions of Various Mitigation Strategies
| Response strategy | Primary purpose | Important consideration |
| Diversified raw material supply | Reduce dependence on one source | Purity and batch stability must be validated |
| Long-term procurement agreements | Stabilize part of the supply and cost | Contracts cannot eliminate all market risks |
| Grain-boundary diffusion | Reduce overall heavy rare earth additions | Requires suitable products and controlled processing |
| Alternative magnetic materials | Diversify material demand | Actual application performance must be maintained |
| Magnetic circuit optimization | Reduce magnet volume and overdesign | Requires system-level simulation and verification |
| Scrap magnet recycling | Create a secondary rare earth source | Collection, dismantling, and economics remain challenges |
| Strategic inventory | Buffer short-term interruptions | Requires capital and creates price exposure |
III. Establishing a Diversified Raw Material Supply System
Permanent magnet manufacturers should avoid relying entirely on a single supplier for critical raw materials. For key rare-earth metals, alloys, and other essential auxiliary materials, a system comprising both primary and backup suppliers should be established.
Sin embargo, supply diversification is not merely about increasing the number of suppliers. Raw materials from different sources may vary in oxygen, carbon, and trace impurity levels; even if the nominal grade is identical, these differences can affect sintering, grain boundary structure, and final magnetic properties.
Por lo tanto, before switching raw material sources, it is essential to conduct compositional analysis, small-batch smelting, magnetic property testing, and reliability verification; direct substitution without process validation is not advisable.
IV. Reducing Heavy Rare-Earth Usage through Technology
Traditional high-temperature NdFeB magnets often achieve higher intrinsic coercivity by incorporating dysprosium or terbium into the alloy matrix; sin embargo, this increases heavy rare-earth consumption and may slightly reduce remanence.
Grain boundary diffusion technology selectively introduces heavy rare-earth elements into the magnet’s surface and grain boundary regions, creating a protective structure where demagnetization resistance is most needed. This approach allows for meeting coercivity requirements while reducing the total amount of heavy rare-earth elements added.
Además, optimizing grain size, rare-earth-rich phase distribution, sintering protocols, and heat treatment processes can also improve coercivity. Sin embargo, these methods rely on consistent control of powder characteristics, contenido de oxígeno, and microstructure.
V. Avoiding Magnet Over-engineering
When selecting products, customers sometimes opt for grades with very high magnetic properties simply to gain a sense of security. Sin embargo, the highest grade is not necessarily the most suitable solution. Material selection should be determined based on actual operating temperatures, reverse magnetic fields, permeability, corrosive environments, and permissible losses. Optimizing magnetic circuits, air gaps, and magnet dimensions through finite element analysis can sometimes reduce magnet volume or lower grade requirements while maintaining system performance.
For magnetic assemblies, effective magnetic flux utilization can also be improved by optimizing magnetically permeable components, magnetization directions, and segmentation methods. Compared to simply upgrading magnet grades, system-level optimization is generally more conducive to controlling resource consumption and costs.
VI. Developing Alternative Magnetic Materials
Different applications have varying requirements for magnetic properties. While high-power-density motors may require sintered NdFeB, ferritas, injection-molded magnets, or other materials can be used for certain home appliances, altavoces, sensores, y motores auxiliares.
Samario-hierro-nitrógeno (Falso) shows potential in the fields of injection-molded and bonded magnets; Samario-Cobalto (Smco) is suitable for applications requiring high-temperature resistance and corrosion resistance; ferrites are low-cost and relatively abundant, making them suitable for products where installation space permits and magnetic performance requirements are moderate.
Material substitution must be validated regarding magnetic circuits, temperature, and service life; selection should not be based solely on unit price.
VII. Increasing the Recycling Rate of Used Magnets
Scrap, grinding swarf, and substandard products are generated during permanent magnet production, while discarded motors, turbinas eólicas, and electronic equipment also contain recyclable magnets.
Production waste with clear composition and low contamination is suitable for direct regeneration, whereas mixed, oxidized, or heavily contaminated waste can be processed via hydrometallurgy to recover rare-earth elements.
Actualmente, raw materials for rare-earth recovery primarily come from manufacturing losses; the recovery of permanent magnets from end-of-life products is constrained by collection rates and economic viability.
Future efforts should focus on magnet identification, design for disassembly, and material traceability to ensure that magnets can be accurately identified and centrally recycled after products reach the end of their service life.
VIII. Upgrading from Procurement Risk Management to Supply Chain Management
Enhancing the security of raw material supplies cannot rely solely on inventory management. Enterprises also need to establish mechanisms for raw material price monitoring, supply risk classification, alternative material validation, customer demand forecasting, and recycling.
Our business operations encompass magnetic materials, magnetic assemblies, magnetic material processing equipment, rare-earth resource partnerships, as well as motor and scrap magnet recycling. This business structure—spanning raw materials, manufacturing, applications, and recycling—facilitates the coordination of information and resources across different stages of the value chain.
For the permanent magnet industry, a more robust approach involves simultaneously pursuing supply diversification, heavy rare-earth reduction, magnetic circuit optimization, alternative materials, and closed-loop recycling. Only by adopting such a combined strategy can enterprises enhance their operational resilience in the face of fluctuations in raw material supply and demand and changes in the external environment, thereby ensuring stable production and customer delivery.
