Eric Onstad

LONDON (Reuters – Britain could boost domestic production for super strong magnets in wind turbines and electric vehicles with government support. It would reduce its dependence on China, and cut down carbon emissions.

According to sources, Friday will see the publication of a government-funded feasibility report that details the steps Britain needs to take to restart the production of rare earth permanent mags.

The UK, which hosts the COP26 U.N. Climate Talks in Glasgow (Scotland), would benefit from a magnet factory to help it achieve its goals of eliminating petrol and diesel cars by 2030, and reducing carbon emissions by zero by 2050.

British production of magnets disappeared in the 1990s as industry discovered it was not able to compete with China. But with the massive growth in demand, the government wants enough supply.

Last month, government plans were announced to implement its net zero strategy. It includes spending an estimated 850million pounds ($1.15 billion), to help with the development of electric cars (EVs) as well as their supply chains.

Sources who read the report stated that the study shows how a plant could eventually be built in 2024 to produce sufficient powerful magnets to provide 1,000,000 EVs a month.

Sources said, “We are looking to change the tide of shipping all that kind of manufacturing overseas and revive UK manufacturing excellence.”

Because the report was not released, the Department for Business of Government declined to comment.

A spokesperson stated that the government is continuing to collaborate with investors via our Automotive Transformation Fund (ATF). This will help to move plans to create a global competitive electric vehicle supply chain here in the UK.

EV RAMP-UP

Less Common Metals, a British company that produces rare earths, has completed the feasibility study. They are looking for partners in order to build the factory together according to sources.

LCM is the only company outside China to transform rare earth materials into special compounds that can be used in the production of permanent magnets.

The magnets will be needed by automakers as they increase EV production in Britain – Ford announced last month that it would spend up to 230million pounds on an English plant in order to make around 250,000 EV units per year starting in mid-2024.

Because they’re the most efficient way of powering EV motors, 90% use rare earth magnets made from neodymium.

These magnets are less efficient than ordinary magnets and allow electric cars to travel further without needing to recharge.

According to the European Union, there will be a race between automakers and other countries for EVs to increase their production. This could boost Europe’s demand for permanent magnets by as much as tenfold in 2050.

Sources said that government support was vital for Britain to compete with China which supplies 90 percent of its supply.

Similar efforts were made in the USA and EU to establish domestic industries for rare earth processing, permanent magnets and raw materials.

($1 = 0.7404 pounds)