• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Section 1: Introduction
04 The Québec Mining Scene
05 Ministry of Natural Resources and Forests Interview
06 QMA Interview
07 AEMQ Interview
08 Section 2: Financial & Regulatory Environment
09 The Québec Investment Scene
10 Ressources Québec Interview
11 SIDEX Interview
12 Desjardins Interview
13 National Bank Interview
14 Gold Royalty Interview and EMX Royalty Interview
15 Industry Insights: Consolidation, a given
16 The Regulatory Landscape
17 Lavery Interview
18 Fasken Interview and Bennett Jones Interview
19 A Multi-commodity Approach to Navigating Capital Markets
20 Orford Mining Interview
21 Harfang Exploration Interview and Vior Inc Interview
22 Section 3: Gold
23 Gold Production
24 Agnico Eagle Interview
25 Newmont Interview
26 Hecla Mining Interview
27 Eldorado Gold Interview
28 Gold Development and Exploration
29 Troilus Gold Interview
30 Abcourt Mines Interview
31 O3 Mining Interview
32 First Mining Gold Interview
33 Gold Fields Interview and Osisko Mining Interview
34 Northern Superior Resources Interview
35 AMEX Interview and Cartier Resources Interview
36 Section 4: Battery and Base Metals
37 Battery Metals Production
38 Glencore Interview
39 Sayona Interview
40 Northern Graphite Interview
41 Battery Metals Development and Exploration
42 Patriot Battery Metals Interview
43 Osisko Metals Interview
44 Brunswick Exploration Interview
45 Q2 Metals Interview
46 Lomiko Metals Interview and First Phosphate Interview
47 Rare Earth Material Extraction and Processing
48 Commerce Resources Interview
49 Expert Opinion Article by Torngat Metals
50 Industry Insights: World Race for Lithium
51 Section 5: Infrastructure, Equipment, and Innovation
52 Decarbonization: the Home Advantage
53 Hydro Québec Interview
54 Adria Power Systems Interview
55 Rithmik Solutions Interview
56 Innovation in Geology
57 Abitibi Geophysics Interview
58 IOS Services Géoscientifiques Interview and Géophysique TMC Interview
59 Section 6: Services
60 Engineering Québec’s Future
61 AtkinsRéalis Interview
62 G Mining Services Interview
63 Progesys Interview and Meglab Interview
64 Water Management
65 GCM Consultants Interview
66 ALTRA | SANEXEN Interview
67 Veolia Water Technologies Interview
68 Aerial Logistics
69 Chrono Aviation Interview
70 OCTANT Aviation Interview
71 A Forward Outlook for the Aviation Industry
72 Nolinor Aviation Interview
73 Air Tunilik Interview
74 Drilling
75 MBI Global Interview
76 RJLL Interview
77 Diafor Interview
78 Section 7: Company Profiles
79 Glencore Company Profile
80 Sayona Company Profile
81 Chrono Aviation Company Profile
82 O3 Mining Company Profile
83 Agnico Eagle Company Profile
84 AtkinsRéalis Company Profile
85 Veolia Water Technologies Company Profile
86 Article & Interview Directory
87 Credits

How a Lack of Heavy Rare Earths Could Hamper Building a North American Permanent Magnet Supply Chain

EXPERT OPINION ARTICLE BY:

Christine Burow,

Chief Marketing Officer,

TORNGAT METALS


"Due to the urgent need to close the supply gap of all rare earths, and critically the heavy rare earths, all rare earth projects that have dysprosium and terbium, are economically attractive, meet ESG criteria, and have a social license, should be developed."

Rare earth permanent magnets are crucial to North America’s electrification and decarbonization ambitions. Permanent magnets are essential to manufacturing high-efficiency motors used in electric vehicles, drones, robotics and increasingly in wind turbine generators. Electric vehicles (EVs) require a high-performance battery and a high-performance drivetrain motor. The battery system is unavoidably bigger and more expensive than the drive train motor. This means that motor efficiency, enabled by permanent magnets, is critical because a less efficient motor requires a larger battery, which adds significant cost and weight.

The type of permanent magnet used in EVs contains rare earths neodymium, praseodymium, dysprosium, and in some cases terbium. The light rare earths—neodymium and praseodymium—are the key magnetic elements for producing a permanent magnet. Less understood though is the critical role that heavy rare earths—dysprosium and terbium—play in high-performance applications such as a drivetrain motor. Heavy rare earths create a stronger magnet and allow the magnet to retain its magnetic properties in elevated temperatures during motor operation. (More technically, dysprosium and terbium increase the energy density of the magnet and improve the thermal stability, resulting in increased power, size efficiency, and long-term reliability.) Dysprosium and terbium do not occur in significant quantities in most rare earth deposits, causing serious difficulty in matching supply to demand. Despite higher prices, dysprosium and terbium continue to be cost-effective considering the combined cost of the battery and motor system.

Over the past decade, there have been significant advances in permanent magnet technology to deploy dysprosium and terbium more efficiently. This has allowed the tight supply of dysprosium and terbium to be stretched over an ever-increasing number of EVs and other applications, but the need for heavy rare earths is continuously growing.

Given the supply problem, why not use magnets that do not contain dysprosium and terbium?

With the rapid acceleration in the production of EVs, dysprosium, and terbium have risen to the top of the criticality list because they work so much better than any other options. However, due to the risks and uncertainty of supply security, there have also been efforts to remove dysprosium and terbium entirely, or even to move to non-permanent magnet motors. These alternatives inevitably come with compromises to efficiency, performance, reliability, and costs. This means that companies and countries that can establish long-term supply security for these two heavy rare earth elements will have a distinct and significant competitive advantage.

In short, dysprosium and terbium are essential for an independent and secure supply chain. Currently, China controls almost 100% of the supply. China’s dysprosium and terbium supply comes from domestic mining and up to 50% comes from ore concentrate from Myanmar. China is also increasingly importing concentrate from other countries.

Despite progress underway on other aspects of the supply chain, such as developing new magnet manufacturing facilities in North America, EV production will remain dependent on China unless secure dysprosium and terbium supply can be increased to support the rapidly growing demand for high-efficiency permanent magnet motors.

What do EV and green technology manufacturers need from their rare earth permanent magnet supply chain?

Companies are increasingly planning to measure and report on their ESG performance in their supply chain all the way back to the mine. This is a requirement from their customers to protect their brand from social license and environmental integrity concerns. Therefore, in addition to the long-term security of supply, they need traceability, transparency, and commitment to an acceptable level of ESG performance.

If new secure and responsibly produced dysprosium and terbium are essential for a fully independent rare earth permanent magnet supply chain, where should they come from?

Due to the urgent need to close the supply gap of all rare earths, and critically the heavy rare earths, all rare earth projects that have dysprosium and terbium, are economically attractive, meet ESG criteria, and have a social license, should be developed. All projects meeting these criteria are needed; not needed is debating and competition between projects. Meeting climate change and decarbonization targets requires manufacturing of products that use critical minerals sourced from a fully independent and diverse supply chain. Increasing the dysprosium and terbium supply globally is mission-critical, and requires a deliberate, collaborative effort, where everyone plays, allowing everyone to win.

Image courtesy of Torngat Metals

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Industry Insights: World Race for Lithium