The Update on The Magnet Industry 2024/05

Highlight of the Month   ◎ Jerry Yang, COO

Rare earth mineral prices continue to rise steadily this month. The factors supporting this upward trend may be related to the following three points:

Firstly, the economic recovery after the pandemic was not as strong as expected, leading to manufacturers over-purchasing and resulting in excessive inventory. As market demand gradually stabilizes, inventory levels are able to normalize, decreasing to standard levels.

Secondly, the supply of mineral raw materials continues to tighten, slowly moving towards a balance between supply and demand.

Lastly, taking a perspective beyond the pure market view, from the angle of international relations. The shocks of the Ukraine-Russia conflict and the Gaza conflict have diminished, leaving a sense of prolonged uncertainty. With the upcoming U.S. presidential election, the outcome is bound to influence the entire international situation. At this time, all parties need to address their internal issues and observe the situation, thus bringing about temporary stability.

Returning to the news of this month, Japan and South Korea are still striving to establish alternative supply chains for rare earth minerals and permanent magnets. In terms of applications, the characteristic of non-contact force possessed by magnets enables non-physical contact and non-invasive surgeries, reducing the collateral damage caused by surgeries and implementing safer and more accurate therapeutic practices. Meanwhile, Boston Dynamics' Atlas robot has switched from the hydraulic actuators of its predecessor to electric joint motors, significantly improving the robot's strength, agility, and control precision. The development of this robot will provide greater productivity and safety for future automated production lines, and permanent magnets will undoubtedly play a crucial role as key components.The relationship between magnetic energy and other forms of energy still holds many unexplored frontiers. This not only adds an aura of mystery to magnetism but also signifies its immense potential for further research and development.Research laboratories in the United States and Northern Europe are dedicated to developing specific transformations induced by light at room temperature, such as endowing materials with superconductivity or magnetism. When magnetism can be manipulated by light, it brings significant contributions to the development of quantum computing-related technologies, greatly increasing computing speed and energy utilization.

In light of the recent media attention surrounding "technology" of permanent magnets and magnetic energy, I intend to embark on a monthly exploration of the permanent magnet and rare earth industries through the lens of actor-network theory (ANT) in the field of science and technology studies (STS). Over the coming months, I will utilize this theoretical framework to provide unique insights into this dynamic sector.

The Actor-Network Theory (ANT) differs from most social science theories that mainly focus on humans, emphasizing the agency of non-human actors. Non-human actors include organisms, objects, technologies, natural environments, and institutional organizations, whose agency can be understood as the ability to influence or make differences. According to this theory, the same "technology" placed in different social and cultural contexts will form different networks with local actors, thus leading to different outcomes. Furthermore, "technology" will undergo various negotiations, competitions, or cooperations among actors in their respective networks, progressing toward specific and unique pathways.

Taking the technology of rare earth mining technology as the analytical focal point, in the 1980s, due to the gradual rise of environmental awareness in European and American countries, this technology could not be sustained in developed countries and shifted to China, which prioritized economic development at that time. The network composed of technology, natural environment, and state-set priorities determined the transfer of mining and separation technology. The discourse on mining technology is seen as a threat to public health in the United States but as an opportunity for improving people's lives through economic development in China. However, behind this lies the power relationship of developed countries transferring pollution to developing countries. Such international power relations continue to this day, resulting in the high dependence of the permanent magnet supply chain on a single country, thus facing the dilemma of developing green energy technology and supply chain risks. 

 In this analysis, "technology" is no longer simply objective, waiting for humans to use it. The technology of rare earth mining and separation carries highly polluting attributes, yet its output is indispensable raw materials for defense, electronics, electrical machinery, and green energy technology. The agency of technology has brought about the green energy paradox in today's world: on the one hand, humans reduce environmental impact through green energy technology, while on the other hand, the basic raw materials of green energy technology continue to pollute the environment. This month, through the analysis of technology using Actor-Network Theory, I hope everyone can re-examine the technology network they are in and find a path of development that is symbiotic and mutually beneficial through communication and negotiation with human and non-human actors.

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