Nikkei Asia reports a surge in rare earths metal prices due to a soaring demand and tensions between the U.S. and China. China is the biggest rare earths producer in the world. The magnetic alloy praseodymium neodymium doubled in price from last June, now hovering at just over $117,000 USD per ton with no reversal of this trend in sight.
AEC NdFeB (neodymium-iron-boron) permanent magnets are made from Praseodymium and neodymium, and are used in everything from speakers and electric vehicle motors to medical devices and precision munitions.
“Demand for rare earths is rising and will continue to rise sharply for several reasons,” said Bill Klaus, president of AEC Magnetics, headquartered in Cincinnati, Ohio, U.S.A. “The demand and popularity of green technology is fueling the need for neodymium dioxide, which is a key material in electric vehicles and wind turbines. The world’s appetite for electronics is creating bigger demand for NdFeB magnets, which perform key functions in smartphones, handheld devices and computers, whose usage spiked, and then continued to rise, during the pandemic.” Shanghai Metal Market backs up Klaus’s assessment, reporting a 21-percent to nearly 50-percent increase in demand for these rare earth elements.
China is the only country with a complete supply chain for rare earths from mining to refining to processing. It has withheld, or controlled, rare earths exports in the past, as it has in its exports of more commonly known metals such as tin, copper, aluminum and steel. Tin, for instance, has almost doubled in price.
“AEC Magnetics has enjoyed a terrific relationship with its China suppliers for decades. We’ve developed great sources and they serve our customers well. We cannot, however, change the geopolitical pressures, but do strive to inform and alert our customers so they can take steps in their procurement process to eliminate or at least ease any price and availability issues.”
Klaus says some steps customers may take to save money and time include advancing orders, ordering in bulk and taking advantage of AEC Magnetics’ free blanket order process. “Advancing orders ensures you lock in at current prices. We do not know, nor can we control, what the permanent magnetics market will be like one quarter from now. Buying in bulk is always cheaper, call and ask what our price-break points are. This is a great way to save money. And, especially for those customers who anticipate future orders, we offer blanket order service as a courtesy. Buy in bulk now, lock in today’s price, and we will release the number of magnets you want and ship them on your schedule.” Klaus encourages customers to call him with questions. “Don’t mess around searching the internet. I’ve been designing creating and selling magnetic solutions for 40 years. Pick up the phone and call me directly, I’ll help you.”