Neodymium magnets are rare earth magnets that are widely known for their powerful magnetic field. The magnet is very ideal for industrial usage because it is highly resistant to demagnetization. The popular variety of rare earth magnet or Neodymium magnets in Brisbane is available in various sizes, shapes, grades and designs.
Tesla has recently shifted to magnetic motors using Neodymium in its Model 3 Long Range Cars. It is expected that Tesla’s move will spur a demand for rare earth Neodymium magnets. Supplies for the rare earth metal have already been strained because of the export ban from China which is the top producer of the rare earth magnet.
Governments all over the world are exerting all efforts to cut down the hazardous emissions made by fossil fuel powered cars. This is driving the demand for electric cars and the metals used in their production like lithium and cobalt which are the main ingredients of batteries. Neodymium is currently on the spotlight because it is generally lighter, stronger and more efficient compared to the induction motors that are based on copper coils.
Since Tesla has switched to Neodymium, it seems that it has staked its future solely on the electric vehicle. This will increase the demand for rare earth metals because electric cars use permanent magnet technology. Last year, the global demand for neodymium was 31,700 tonnes. It outstripped supply by at least 3,000 tonnes. This year, the demand is expected to increase to about 38,000 tonnes that will potentially result into higher deficits.
The decision of Tesla has changed the dynamics of the market. The price of Neodymium at present is $70 per kilo which is way below the $500 hit after China stopped shipments to Japan in 2010 because of the row over some disputed islands. It is still 40% higher than the price at the start of 2017.
Why are Neodymium magnets in Brisbane more expensive than other magnets? Rare earth can be found in other parts of the world but the process of extraction is difficult and very expensive. Many different metals have to be separated from a single deposit. The process is also complex unlike the separation of copper from ore.