With 300 attendees from Japan and abroad such as rare earth suppliers, magnet manufacturers and magnet users, the International Rare Earths Symposium (REIA 2024 Annual Conference) having commenced on June 19 at the Toranomon Twin Tower in Tokyo, welcomed a variety of presentations and panel sessions. As mentioned in the previous article, it is recognised that one of the most significant themes is that each country is taking measures on critical minerals including rare earths and investing national funds (taxes or tax credits) in those projects (mainly to obtain supply sources from outside China).

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However, even if the mining of rare earth ores can be conducted outside China, the event made it clear in a sense that it is extremely difficult at the moment to “get out of China” without China or Chinese companies in the current situation, especially for the process of oxide or metallisation, and for the process of making processed products such as magnets. The challenges include quantitative, technological, and cost issues. After all, Chinese companies have the advantage of separation and refining. In addition, the metallisation process possesses a high environmental risk, due to its use of large quantities of lithium fluoride. This is the reason why rare earth metallisation is not being conducted in Japan.

Even in the U.S., whilst operations up to mining of rare earth ores are being conducted domestically, refining and processing is relied on, or entrusted to China. In the panel session on the 19th, the opinions were heard that investment should be made in this refining and processing sector. For example, whilst the NEOmag, a major magnetic materials manufacturer having a close relationship with Daido Electronics Co. in Japan, conducts separation and refining processes in China and has the largest number of customers in China, the company is also running separation and refining processes in Thailand, as well as having a plan to commence one in California, the U.S.. They aim to ease the reliance on China. In addition, the company has been steadily preparing to make its Silmet Plant (Silmet MPM) in Estonia into their magnet manufacturing base, which is expected to be up and running by early 2025.

Whilst it is essential to understand the needs of the automobile sector as the demand for magnets is naturally significant in the automobile sector, there is a trend to choose to apply motors that use rare earth-less magnets, as Tesla does. Hence, new applications for rare earths are required.

Let’s get back to the original topic: currently, most separation and refining processes of rare earths occur in China, or in countries where Chinese companies are having their operations (such as in Malaysia). Japan's largest magnet manufacturer’s metallisation process is also being conducted in Vietnam by a Chinese company. Although we must avoid Chinese market domination and overproduction, at the same time, it seems difficult, unrealistic, and unreasonable to completely get out of China or Chinese companies in the rare earth supply chain. 

According to our chat with people from a Chinese magnet manufacturer on the day, it appears that they too have expressed their desire to the Chinese government to avoid too-radical trade policies and regulations. In the rare earth sector, China is an inevitable keyword. Yet, western countries are desperate to somehow produce new suppliers other than China. Indeed, the medium and heavy rare earths are actually present all over the world. However, in each case, the radioactivity levels (uranium and thorium) are high. Whilst it has been an issue for a long period, the treatment and effective utilisation of this radioactive-inclusive waste should be further discussed. The discussions will never end. At the end of Day 1 (19th), Tanamachi (myself) expressed his view that an international conference that enables concerned parties to come together should be held again next year.

（IRUNIVERSE/MIRU　TANAMACHI, translated by A.C.）

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