Supply and demand

How much do we need and how much do we have in the UK?

The demand for rare earth permanent magnets (REPM) is projected to rise significantly to support key decarbonisation technologies, including wind turbines and electric vehicles.
Met4Tech has estimated the REPM requirements necessary to achieve the UK's wind energy targets and net-zero transport goals. Their analysis indicates that between 7,000 and 20,000 tonnes of REPM will be needed annually until 2050 to meet the demand for these technologies1.

Most of the REE in UK products are mined in China and Myanmar, and processed and manufactured in China2. There are a few active mines outside China, notably Mount Weld, Australia, and many deposits around the World that could potentially be developed into mines, thus aiding sustainable development for their communities and countries and helping secure the supply chain.

Additionally, the UK is experiencing a substantial accumulation of material stocks (see graph below), which could be harnessed as feedstock to enable the growth of recycling initiatives and other circular economy strategies. This approach would enhance resource efficiency and contribute to a more sustainable supply chain2.

Rare Earth Permanent Magnet stocks:

What are the associated externalities (ESG challenges)?

REE magnet supply chains have little transparency, it is difficult to know whether magnets contain primary or secondary REE and from where they are sourced, processed and manufactured.
REE mines can have high ESG standards, just like any other mine, but mining and processing of REE has a poor environmental, social and governance (ESG) reputation. This is mainly because of lack of concern for the environment and working conditions in previous years in mines and factories in China3, and now in Myanmar that is currently supplying REE to China.
Cracking (dissolution) of REE minerals and separation of REE from each other into products for onwards manufacturing are chemical-intensive processes and REE minerals often host minor amounts of the radioactive elements, Th and U, that cause concern.
There is a balance problem between certain REE that are often in oversupply (e.g. La, Ce) to ensure that the less abundant, but in high demand, REE (e.g. Nd, Pr, Dy) are produced in sufficient quantities4. New applications for REE in oversupply, would help improve total REE production stability5.

There are several mine-site responsible mining schemes that companies can use to demonstrate high ESG standards. Product passport schemes would help with supply chain assurance. Environmental and social supply chain impacts can be quantified using life cycle assessment6,7 thus helping companies to choose preferred suppliers.

Recycling also needs to adhere to high ESG standards, but less thought has been given to this to date.
Various international committees are considering standards for responsible sourcing of REE, including BSI, ISO8.

Rare earth (terbium) ore held in partially closed hand.

Researcher sat looking into a microscope in the Deep Digital Visualisation Suite at Penryn

How much of the value chain do we have in the UK?

There is no primary REE production and very limited geological potential for REE mining. There are several UK companies exploring and developing REE ore deposits overseas.
The UK is home to one of the few REE alloy manufacturers outside of China, and it has, therefore, an active role in the global REE supply chain and the production of REE alloys.

The UK has no suitable rare earth permanent magnet (REPM) production, but there are UK actors involved in the distribution of REPM.

The UK has an active role in motor and car manufacture and therefore demand for REPM is significant.
The UK recycling capacity of REE permanent magnets is in development.

Female miner smiling in front of large piece of machinery

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1. Wan-Ting Hsu, Evi Petavratzi, Markus Zils, Stefán Einarsson, Esmaeil Khedmati Morasae, Oliver Lysaght, Peter Hopkinson. Mapping the flows and stocks of permanent magnets rare earth elements for powering a circular economy in the UK, Sustainable Production and Consumption, Volume 47, 2024, Pages 37-46, ISSN 2352-5509, https://doi.org/10.1016/j.spc.2024.03.027

2. Lee, R , Ahuja, J,& Cavoski, A 2024, 'Geopolitics of Access to Critical Minerals Necessary to Support Energy Transition', Global Energy Law and Sustainability, vol. 5, no. 2, pp. 163-181. https://doi.org/10.3366/gels.2024.0122

3. Ali, S. H. (2014). Social and Environmental Impact of the Rare Earth Industries. Resources, 3, 123-134. https://doi.org/10.3390/resources3010123

4. Goodenough, K.M., Wall, F. & Merriman, D. (2018) The Rare Earth Elements: Demand, Global Resources, and Challenges for Resourcing Future Generations. Nat Resour Res 27, 201–216. https://doi.org/10.1007/s11053-017-9336-5

5. Sims, Z.C., Kesler, M.S., Henderson, H.B. et al. (2022) How Cerium and Lanthanum as Coproducts Promote Stable Rare Earth Production and New Alloys. J. Sustain. Metall. 8, 1225–1234. https://doi.org/10.1007/s40831-022-00562-4

6. e.g. ‘Mine MT’ project funded by the IUK CLIMATES programme https://www.ukri.org/news/projects-secure-6-6m-to-strengthen-uk-supply-of-critical-materials/

7. Wall F., Rollat A., Pell R.S. (2017) Responsible Sourcing of Critical Metals, Elements, 13:313-318, https://doi.org/10.2138/gselements.13.5.313

8. BSI, ISO – International Workshop Agreement (IWA) https://www.standards.org.au/engagement-events/events/international-workshop-agreement-iwa-sustainable-critical-minerals-supply-chains-workshop

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REE CE diagram

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