Britain may resume domestic production of super-rare earth magnets for new energy cars and wind turbines with government backing to reduce reliance on China and meet key carbon reduction targets, two sources familiar with the matter said.
A feasibility study funded by the British government outlining steps that must be taken to restart production of rare earth magnets in the country will be published on Nov 5 local time, the sources said.
At present, the 26th United Nations Climate Change Conference (COP26) is being held in Glasgow, UK, after the UK unveiled its latest "net zero emission strategy", which plans to end the sale of new gasoline and diesel cars by 2030 and achieve the goal of carbon zero emissions by 2050.
Rare earth magnet is a kind of strong permanent magnet composed of rare earth alloy. The related research began in 1970s and 1980s. Among permanent magnets, rare earth magnets can generate the largest magnetic field, far more than Al-nickel-cobalt magnets or ferrite magnets.
Britain's rare-earth magnet industry is understood to have disappeared in the 1990s, largely because it was unable to compete with China. But with demand surging, the government wants to ensure adequate supplies.
Last month, the British government set out plans for a net-zero carbon strategy, including spending 850 million pounds to support the rollout of new-energy electric vehicles and their supply chains.
Sources who have seen the forthcoming feasibility report said the study outlined how to build the plant by 2024 and eventually produce magnets powerful enough to supply about 1 million electric vehicles a year.
"We want to reverse the trend of all such manufacturing moving to the Far East and revive the glory days of British manufacturing," one of the sources said. Neodymium magnets (also called neodymium magnets) are the most common rare earth magnets, and China and Japan are the world's largest producers of neodymium magnets.
The British government's commercial department declined to comment on details of the possible magnet plant as the feasibility study has not yet been officially published, the report said. "The government continues to work with investors through our Automotive Transformation Fund (ATF) to take forward plans to build a globally competitive electric vehicle supply chain in the UK," a spokesperson said in an emailed response.
British rare earth producer LCM wrote and put together the feasibility study and is considering finding a partner to build the plant, the sources said. LCM is one of a handful of companies outside China that turn rare earth raw materials into special compounds needed to produce rare earth permanent magnets.
Rare earth magnets made from neodymium, a rare earth element, are used in 90 percent of electric vehicles and are widely regarded as the most efficient way to provide power, Reuters said. Electric cars using these rare-earth magnets require less battery power and can go longer on each charge than electric cars using regular magnets.
For now, many carmakers will need rare earth magnets as they ramp up production of electric vehicles in the UK. The American automaker Ford said last month that it would invest as much as 230 million pounds, or $1.90 billion, in a plant in Britain from mid-2024 to produce about 250,000 electric vehicles a year.
The European Union says it expects demand for rare-earth magnets in Europe to increase tenfold by 2050 as automakers ramp up production of electric vehicles and countries shift to wind power.
On September 30, the European Union announced a 1.7 billion euro (about 12.68 billion yuan) investment plan for the rare earth industry, calling on EU member states and manufacturers to support the mining and processing of rare earth through subsidies and sales quotas, so as to reduce the EU's dependence on China's rare earth exports.
Sources say the level of government support is crucial so that Britain can compete with China. China is the world's leading producer and exporter of rare earths and currently controls about 90 percent of the global supply.
The Reuters story concludes by noting that the UK's strategy mirrors similar efforts by the European Union and the United States to build domestic industries for raw materials, rare earth processing and rare earth magnets.
