X-MINING X-TALK Vol.6 【Part 1】 Surge in the Prices of Rare Earth Magnets and the Possibility of Samarium-Iron-Nitride Magnetic Materials

Alconix acts as a nonferrous metal trading company. They have joined with Sumitomo Metal Mining in handling nickel and copper over a long time in various ways. Their name is the combination of “Al” aluminum, “co” copper, and “ni” nickel. The last character, “x,” signifies an extension to the future. Therefore, it can be said that their name has a similar meaning to “X-MINING”.

We have a very long history of developing samarium magnetic materials, which started with samarium-cobalt magnets and has continued to the current samarium-iron-nitride magnetic materials. We also once produced and sold magnet moldings, which formed a steady foundation for the technology for molding materials. However, a weak point has been their insufficient appeal to the global market.

Samarium-iron-nitride magnets are drawing attention as an alternative to neodymium magnets, which experience significant price fluctuations. We think that now is an opportunity to publicize samarium-iron-nitride (hereinafter referred to as “SFN”) magnets.

SMM’s Samarium-Iron-Nitride Magnetic Material

In Japanese, we use a similar expression to “rare earth,” which suggests a material that is “hard to collect”. However, they still exist in fairly large amounts on Earth. On the other hand, there is only a limited number of areas where rare-earth materials can be collected economically, many of which are in China.

A rare-earth mineral ore contains 17 elements. Neodymium, which is relatively rich in content, has been used as a magnetic material for a long time. Recently, there is concern about its supply in the future. This is why the chemical element called “samarium,” which also belongs to the category of rare-earth elements, is receiving attention. Of the 17 elements, samarium and neodymium are used as magnetic materials.

As I said before, rare-earth materials are supplied from a limited number of areas, which means that the balance between supply and demand has a significant effect on their prices. Among others, the prices of neodymium and dysprosium, which are the elements used for neodymium iron boron magnets, have been on the rise since 2021.

Neodymium（Nd）

There was actually such a trend, where rare-earth imports were limited following the dispute involving the Senkaku Islands in 2010. Even though such speculation has been seen in the past one or two years, the extent is smaller by far compared to the above period.

Changes in the Prices of Neodymium（Nd） and Samarium（Sm）

China used to be a major exporter of rare-earth materials. In recent years, however, the country is one of the world’s leading consumers of the materials, promoting the spread of electric vehicles (EVs) and wind power generation. It follows that the violent fluctuations in the prices of rare-earth materials are undesirable for their efforts.

Prices are rising now simply because of the growth in actual demand.

You are right. The actual demand is the main factor behind rising prices, and it is healthy in a sense. However, since it depends on changes in the world situation, there might be changes in prices not due to actual demand in the future.

In contrast, the prices of samarium magnets are relatively stable compared to those of the other elements. Samarium has limited applications other than for magnets, and it is thought that a resource shortage is unlikely to happen. In summary, samarium magnets have great potential.

One factor behind the insufficient supply of neodymium magnets is the rapid spread of EVs.

Yes, that’s correct. It is said that the number of EVs sold will grow to approximately five times larger than today (Source: Global Electric Vehicle Outlook 2022 (windows.net)). If EVs spread as widely as expected, the amount of neodymium used for their motors will increase accordingly. In preparation for this trend, research has been conducted to avoid using neodymium magnets.

In a situation where the prices of base metals such as nickel and copper are also changing, using neodymium magnets with unstable or surging prices puts a burden on the users. We are a company always on the lookout for opportunities to contribute to society through our daily business activities, and we think that our materials have great application to EVs. SNF is the chief material in this contribution. Our aim is to grow the recognition of SNF as an alternative to neodymium by publicizing its possibilities around the world.