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Neodymium is essential for the production of electric cars, but the rare earth metal is mostly mined in China. A German company has now developed an alternative solution. The first prototypes are in the test phase.
Hodenhagen – Around one million electric cars were registered in Germany at the beginning of 2023. Each of these vehicles requires rare metals, also known as rare earths, to power its vehicles. One of the most important metals for electric motors is the magnetic metal neodymium, which is found almost exclusively in China mined and processed. Neodymium metals are among the strongest in the world and are characterized by their high performance. A company from Hodenhagen in Lower Saxony has now developed an alternative to neodymium magnet motors that could reduce Germany’s dependence on China. A first prototype is already in the test phase.
A machine selects raw materials with high rare earth content in a mine in Bayan Obo, in northern China. © IMAGO
The rare earth business – China holds a monopoly of around 95 percent
The rare earth business is extremely profitable. According to the Federal Statistical Office, around 5,300 tons of rare earths worth 49.3 million euros were imported into Germany in 2022. Rare earths include chemical elements of the 3rd subgroup of the periodic table or the lanthanides, including metals such as scandium, which is used for alloys, lanthanum for PTC thermistors and neodymium for electric motors. Apart from electromagnets, the neodymium magnet is the strongest in the world and is therefore indispensable for the production of electric cars. However, neodymium is usually only found in small amounts in nature in combination with other minerals and has to be processed into magnets in a complex process. Most of the deposits are in China.
Around 95 percent of the neodymium available worldwide comes from there. Other rare earth metals such as terbium, which is used in semiconductors, and praseodymium, which is used in headphones, are also mainly mined in China. These metals are of great importance not only for electric motors, but also for wind turbines. In 2022, according to the Federal Statistical Office, 65.9 percent of the rare earths imported into Germany came from China. The metal neodymium, together with other rare earths such as lanthanum and samarium, which is used for stepper motors, came 75.4 percent from China, with a value of 13.9 million euros. According to the Handelsblatt China holds 62 percent of the global market share in rare earth mining, more than 92 percent in refining, and about 94 percent in the production of high-performance magnets.
Alternative to neodymium magnets – German company launches first prototypes
Due to the dependence on China, many companies are looking for alternatives to neodymium magnets for the production of electric motors. The German company Veekim has had initial success in this area. Instead of neodymium, it uses weaker ferrite magnets made of iron oxide. Despite this change, Veekim founder Peter Siegle explains: “Our motors are ten to 30 percent cheaper and yet just as powerful.” After three years of development work and investments of eight million euros, the company is now testing prototypes. Veekim is currently working with two of the ten largest automobile companies in Germany, as the Handelsblatt reported.
However, an expert in functional materials emphasizes in the report that neodymium-iron-boron magnets are significantly superior to ferrite magnets in terms of their properties. However, the same performance can be achieved through clever design. Whether production on an industrial scale is possible remains questionable.
In addition to the project in Hodenhagen, there are already other initiatives. The German supplier ZF is working on a motor that does not require any magnets at all. In the USA, attempts are being made to improve weaker and less rare magnets. BMW is testing the series use of wheel hub motors that do not require the sought-after magnetic metals.
Demand for rare earth metals will rise sharply – EU directive counteracts dependence on China
Alternative solutions are urgently needed as the demand for rare earths will increase sharply in the future. According to forecasts by the European Union Demand will increase sixfold by 2030 and even sevenfold by 2050. Demand for lithium is expected to increase twelvefold. In order to reduce this dependence on a single country such as China, the EU’s Critical Raw Material Act stipulates that a maximum of 65 percent of the EU’s annual consumption can be covered by a single third country. This should help to avoid dependence on a single supplier country.
