What are Flows & Stocks of Permanent Magnets for Enabling Resilient UK?

Highlights

• The UK entirely imports rare earth elements, with no domestic production of permanent magnets or wind turbine generators.
• By 2021, 4.2 kilotonnes of rare earth elements (REEs) were embedded in electric vehicles (EVs) and wind turbines, representing 10% of global annual mine production.
• Developing reverse supply chains for recycling and reusing REEs is essential but requires substantial infrastructure and collaboration.

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The lead author, Wan-Ting Hsu (opens in a new tab), with the British Geological Survey at the time and colleagues including professionals affiliated with prominent organizations like the UKRI Interdisciplinary Circular Economy Centre for Technology Metals and Met4Tech,  hypothesize that understanding and quantifying the material flows and stocks of rare earth elements (REEs) in the UK—particularly in neodymium-iron-boron (NdFeB) magnets used in electric vehicles (EVs) and wind turbines—can guide policy interventions and strategies for developing a so-called circular economy. This includes reducing dependency on imports and improving traceability and recovery of REEs.

 Theco-authors include experts from varied fields, reflecting a multidisciplinary approach to the study. The research is published in Sustainable Production and Consumption (opens in a new tab), an Elsevier journal emphasizing environmental sustainability in industrial practices.

The Study

The researchers utilized Material Flow Analysis (MFA) to map the flows and stocks of four key REEs (neodymium, dysprosium, praseodymium, and terbium) within the UK economy from 2017 to 2021. The system boundaries included REE compounds, metals, alloys, and final products like EVs and wind turbines.

Some key elements associated with this study:

Elements	Summary
Data Sources	Publicly available databases, industry reports, stakeholder consultations, and peer-reviewed literature.
Assumptions	Due to data limitations, the study relied on proxies and assumptions validated through consultations.
Uncertainty Analysis	A systematic evaluation of data quality using the Laner et al. (2015) approach, revealing areas of low to high uncertainty.

Findings

First and foremost, the UK imports all its REE compounds and metals, primarily from China, and exports most of its alloy production.

There is no domestic production of permanent magnets (PMs) or wind turbine generators. Meaning they UK is a high important reliant nation. The UK imported 10,682 tonnes of REE in PMs and exported only 2,895 tonnes, reflecting a heavy dependence on global markets.

Also, most REEs in end-of-life products (EVs and wind turbines) are not recovered but lost during waste management. Hence no chance for recycling.

By 2021, 4.2 kilotonnes of REEs were embedded in EVs and wind turbines in the UK, equivalent to 10% of the global average annual mine production, meaning significant stock is present.

So, what does this mean for the possibility of a so-called circular or “resilient” economy?

Developing reverse supply chains for recycling and reusing REEs is essential but requires substantial infrastructure and collaboration. But what is a circular economy?  An economic system aimed at eliminating waste and the continual use of resources by creating a closed-loop system where materials and products are reused, refurbished, recycled, and repurposed. This approach contrasts with the traditional linear economy, which operates on a "take-make-dispose" model.  Aspiring for this dynamic certainly seems appropriate to the extent practical and feasible.

What assumptions did the authors operate from? Any biases?

Certainly, all humans have some bias, and assumptions were made.  This latest paper  relied on aggregated trade and production data, which may obscure the specific flows of individual REEs. Plus, it was only focused on the UK.  That is,  the results are tailored to the UK context, which may not generalize well to other countries. And while stakeholders helped validate data, their interests could influence the framing of results and recommendations.

Overall pros and cons of this piece

On the one hand the authors operate with a comprehensive framework to guide their analysis.  The study offers the first UK-specific MFA model for tracking REE flows in NdFeB magnets for example. Also, the study highlights critical gaps in the supply chain and offers actionable recommendations for the so-called circular economy.

Also, we appreciated the Involvement of multiple stakeholders ensures practical applicability of findings.

On the other hand, data gaps and underlying assumptions must be understood. Heavy reliance on proxies introduces uncertainty, especially for intermediate stages in the supply chain.

Also, we appreciate the ideal of a circular economy, the reality is it might not fully address geopolitical and market risks associated with REE supply.

Focuses on EVs and wind turbines, excluding other significant uses of REEs like electronics and healthcare technologies also should be noted.  The article underscores the strategic importance of REEs for the UK’s energy transition and industrial competitiveness. By identifying critical vulnerabilities and opportunities for recycling and recovery, it lays a foundation for reducing dependency on imports and fostering sustainability.

Pros and Cons of this Paper:

Pros	Introduces a novel MFA model. Offers practical recommendations for policy and industry. Highlights the urgency of addressing REE supply chain challenges.
Cons	Relies on incomplete and aggregated data. Limited exploration of global cooperation opportunities. Excludes other sectors critical to REE consumption.

In summary, this recent piece offers a strong starting point for understanding and addressing REE supply chain challenges in the UK, though its reliance on assumptions and narrow scope suggests the need for further research and broader policy initiatives.