Magnetics Business & Technology - July/August 2021 - 30

INDUSTRY NEWS
Striving to be the Next Globally Significant Supplier of Neodymium and Praseodymium
(NdPr) to Meet the Needs of EV Driven NdFeB Magnet Demand Growth
able. In the NdPr market, where there is a looming wave of
demand and supply response uncertainty, supply chain risks
may emerge with security of supply, price escalation, ESG
reputational risk and geopolitical market control of concern.
Against this backdrop, advanced strategic projects such as Arafura
Resources' Nolans NdPr Project in the Northern Territory
of Australia are well placed to move into production. Nolans is
fully permitted and ready to construct and is now advancing
sales agreements with tier one end-use customers for its NdPr
rare earth metal product which will support a strategic mine to
NdFeB magnet supply chain solution.
The Mineral Resource at Nolans supports a 38-year life of mine
and at full capacity will produce 4,400 tonnes of NdPr oxide,
feeding into a value chain that will supply approximately 12,000
tonnes of NdFeB magnets to customers. If the project funding
schedule is achieved, Nolans will be in production as early as
2025, with a ramp-up period to bring the project to full capacity
by 2027.
Figure 1 - Projected demand and supply of NdPr, with current demand
from EV's growing significantly into 2030, a challenge to see
how an adequate supply response will occur without new production
from advanced projects like Nolans.
By 2030 annual production of EVs is expected to increase
roughly ten-fold to 25-30 million, creating a need to more than
double global supply of the rare earth elements, neodymium
and praseodymium (NdPr), to meet the EV traction motor market
requirement.
Another industry sector receiving significant government incentives
to meet CO2 reduction targets is renewable energy and
the deployment of wind turbines, particularly offshore projects
which have high demand requirements for NdFeB magnets.
These two applications, along with increased demand for
NdFeB magnets from general e-mobility, industrial automation
and consumer electronics, sees a consensus of analysts forecasting
a global demand requirement of approximately 98,000
tonnes NdPr oxide by 2030. Presently, it is challenging to see
where an alternative supply response to meet the projected
supply gap of 51,000 tonnes NdPr oxide will come from - NdPr
has become an indispensable commodity for a sustainable
green energy future.
Companies participating in these industries are needing to position
themselves to compete and maintain or increase market
share and are now giving strategic consideration to the entire
supply chain to ensure their growth aspirations are sustain30
Magnetics Business & Technology * July/August 2021
Figure 2 - Located in central Australia, Nolans is a fully permitted ore
to oxide project.
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Magnetics Business & Technology - July/August 2021

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