Why Are Rare Earth Magnets Important to the Global Economy?
From powering electric vehicles to creating wind turbines, rare earth magnets are integral to the global economy. Thanks to their magnetic strength and energy-producing capabilities, they are ideal for products that require a high energy-to-weight ratio. This also means that rare earth magnets are important to the global supply chain. These processed minerals can be used all over the world to create revolutionary outputs. Due to these reasons, the rare earth magnet industry is important to the global economy, but it can also pose a risk.
Overview of Rare Earth Magnets
Rare earth magnets are strong permanent magnets that contain alloys of rare earth elements. They have strong energy-producing capabilities relative to their weight, which makes them ideal in many industries, including electronics, automobiles, and more. Contrary to its name, rare earth magnets are called “rare” because it is very unlikely to find them in a pure form; however, you can actually find their deposits all over the world. Because of its advantageous properties, wide range of uses, and abundance, the rare earth magnet industry is rapidly growing. According to Global Market Insights, rare earth minerals will monopolize 25% of the minerals produced.How This Industry Poses a Risk
The rare earth magnet market is important to the global economy, but it can also pose a risk. Countries all over the world are heavily reliant on China for rare earth magnets. China produces more than 80% of global output, which gives them strategic advantages, such as favorable tax regulations and being a cost leader. If the United States and other countries are heavily reliant on China for rare earth magnets, we could experience supply chain disruptions that could create bottlenecks in advancing technology. With market forecasts predicting a demand increase within the next decade, reducing reliance is important to the global economy. To combat this problem, the United States is currently building infrastructure to establish independence.Rare Earth Magnets Could Promote Economic Growth
Within the last decade, we’ve seen many initiatives toward clean, green, and low-carbon energy, as well as a global shift toward electric vehicles and automation. These initiatives would not be possible without rare earth magnets, which is why rare earth magnets are heavily used now and will continue to be used in the future. Looking closely at types of rare earth magnets, neodymium and samarium cobalt magnets have and will continue to be key components to many revolutionary and upcoming industries, including: Neodymium Magnets- Electric and autonomous vehicles
- Generators
- Wind turbines
- Medical technology
- Electronics (phones, computers, etc.)
- Wireless charging
- Aerospace (satellite communications, radar and sonar systems, fluid rates)
- Medical devices
- Pumps
- Motors
- Machinery
- Automation
- Aerospace (air compressors, speed sensors, and regulators and pumps)