Reuters: Rare Earth Magnet Users Are Unwilling to Pay High Prices for Supplies Outside China
Reuters, July 1 - Since China imposed export controls on key rare earth magnets on April 4, causing supply chain disruptions, Western customers have changed their stance and are willing to pay higher prices for supplies outside China. After the Estonian plant of magnet manufacturer Neo Performance Materials started production in May, its executive Rashed Suleiman said there was a surge in inquiries, with customers willing to pay a premium of $10 to $30 per kilogram for magnets. Similarly, NovaTech, which supplies Samsung, revealed that its customers are willing to pay 15% to 20% more for magnets from its factory in Vietnam (which will start operations next year). The professional organization Project Blue pointed out that the key rare earth element neodymium-praseodymium oxide (NdPr) used in magnets needs to reach a price of $75 to $105 per kilogram to support sufficient capacity; while Australian investment bank Barrenjoey believes it needs to be $120 to $180 to drive about 20 mining projects globally. Industry professionals pointed out that although automakers are in an electric vehicle price war and have thin profits, they are cautious about excessive premiums, but they are accepting additional costs to ensure traceable non-Chinese supply chains to avoid production stoppages. Suleiman of Neo company emphasized that the industry needs to collaborate to build a supply system outside China and warned that "excessive premiums could lead to demand destruction." Currently, China dominates about 90% of the global supply of rare earth permanent magnets.
Original article: https://www.toutiao.com/article/1836479766331403/
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