產業訊息電子報2023/11

November | 2023
Highlight of the Month  

When discussing the current state and trends in the supply chain of magnetic materials, we can approach it from three different angles: “Raw Materials,” “Manufacturing,” and “Applications.” “Raw Materials” encompass minerals, separation, and magnetic alloy formulations. “Manufacturing” includes processes such as the shaping of magnets, magnetic field orientation, sintering, and post-processing. “Applications” are related to how different forms of energy can be transformed using magnets. With these analytical tools, we can quickly grasp the dynamics and fluctuations of magnetic materials, including rare-earth magnets.

Turning to this month’s recap, we must always remember the fundamental reasons for the importance of rare-earth magnets. At this point, China indeed has a monopoly on the “Raw Materials” aspect and enjoys a dominant position in the “Manufacturing” of magnetic materials, both in terms of production capacity and cost. It possesses abundant and highly developed mineral resources, world-leading separation technology, and well-established production clusters or vertically integrated giant enterprises. Moreover, it continuously reveals its intent to utilize control over the rare-earth and magnet supply chain to gain national interests or strategic advantages. This is evident from its control over graphite exports and other economic strategic maneuvers in the raw materials industry. Delving deeper into the “motor/ EV” industry associated with graphite and rare-earth magnets, we can sense China’s intention to penetrate the “Applications” side firmly from its control over “Raw Materials” and “Manufacturing.”

However, the fundamental reason for the importance of rare-earth magnets is not solely due to the fact that the supply chain is monopolized and the associated risks. It lies in the outstanding energy density of rare-earth magnets—within a relatively small weight and volume, they can generate magnetic field strength far exceeding other magnetic materials and resist external magnetic fields. Such properties may enhance power generation efficiency, especially in wind turbines, but more significantly, they exhibit their advantages in electric vehicles and lightweight electronic products.

Bypassing the monopoly and risks associated with rare-earth minerals, Niron Magnetics, located in the northern United States, has emerged as an emerging material that addresses the fundamental reason for the importance of rare-earth magnets. It uses easily accessible iron and nitrogen elements as raw materials, employing nanotechnology to achieve energy density comparable to rare-earth magnets. Named one of TIME magazine’s best inventions in 2023, it is well-deserved, but there is still a considerable journey ahead to truly enter the

“Applications” stage. The emergence of such a novel material prompts us to reconsider the positioning of magnetic materials and avoid falling into the logic of the China trade war.

In another corner of the United States, Pennsylvania, Gasbarre Products is attempting to break China’s advantage in “Manufacturing” through technological innovations. On the other side of the Pacific, in South Korea, Hyundai Mobis is improving on the “Applications” front, innovatively designing the structure of 4W-EV. By placing permanent magnet drum motors in each of the four wheels and utilizing precise electronic control systems, they enhance the operational efficiency and maneuverability of 4W-EV. These efforts are essential for the normalization and health of the magnetic materials and green technology supply chains. Reducing supply chain risks and developing revolutionary technology go hand in hand, much like the reform of national systems. It is not possible to bring about an entirely new landscape overnight but rather involves gradual breakthroughs at various stages, ultimately resulting in a qualitative transformation. New Favor Industry also aspires to participate in this era’s transformative wave, continually advancing in tandem with technological innovation and customer demands.

Jerry Yang
Chief Operating Officer, New Favor Industry CO., LTD.