1. Due diligence in changing supply chains The permanent magnet perspective
Feddo Bax
Senior design & development engineer
JLMAG Rare-Earth Europe BV

2. 1. JLMAG Rare-earth Co ltd. introduction
2nd largest sintered NdFeB permanent magnet (PM) production China (6000 ton in 2016, ton in 2018)
Close 1 billion RMB turnover 2016
Public listed local Shanghai stock marget (value 2.5 billion RMB)
Bonded NdFeB PM (Injection, Compression) & bonded ferrite PM (injection) since 2017
First with completely vertical integrated supply chain

3. Electric and Hybrid vehicles
3. Permanent magnet applications
Windpower
Hydropower
Tidal Power
Green Electricity
Electric and Hybrid vehicles
High speed trains
E-mobility
Electric bike
And many more:

4. 4. Sintered NdFeB supply chain
Sintered Neodymium-Iron-Boron (NdFeB) permanent magnets maximum strength
Magnetic strength connected to ´Light Rare earth´ metals (Neodymium & Praesodymium)
Magnet stability (temperature, demagnetisation) connected to ´Heavy Rare earth´ metals (Dysprosium & Terbium)
Rare earth supply chain

5. 5. Sintered NdFeB supply chain
2016 China quota system #
Name
China province
Oxide quota (Tons/year) 1
North Rare Earth group
Inner Mongolia Baotou Steel Union
Inner Mongolia
59500 Light rare earth 2
South Rare Earth group
Ganzhou Rare earth industry
Jiangxi
9000 Heavy rare earth
Jiangxi Copper Rare earth
Sichuan
14400 Light rare earth 3
Xiamen Tungsten
Fujian
2000 Heavy rare earth 4
China Minmetals
Hunan
2000 Light/heavy rare earth 5
Guangdong Rising non-ferrous
Guangdong
2200 Heavy rare earth 6
China Alco
Guangxi + Sichuan
3600 Light/heavy rare earth 7
Others (Guangxi RE + Sichuan WFK + others
10600 Light rare earth

6. 6. Sustainability of PM supply chains
China Southern Rare Earth group: 1st China mine passing Central Government Certification system (>2011): 5 central government ministries:
National development and reform Commission
Ministry of Environmental protection
Ministry of Water Resources
State Administration of Work Safety
Ministry of land and resources
Independent Sustainability Audit Intertek: 95% (June 2016)

7. 7. Current situation of PM supply chain
One sustainable Chinese supply chain
Customers & OEMs still tend to make final decision based on cost only
Our experience: even with similar cost & quality of our green supply chain, still main large users consider grey supply chains
Illegal mining still provides 1/3 of total Rare Earth materials in China!
Mined
recycling
???????

8. 8. Our vision on future PM supply chain
Supply chain transparency will become more and more important driven by public opinion & politics in and outside of China
Transparency can be achieved by open audits, objective certification systems & clear traceability of raw materials.
Additional cost of green supply chain for electric and hybrid vehicles can be compensated by huge cost reduction potential of rapid technological developments in permanent magnet production
Cradle-to-cradle concept for magnets: use `design for recycling´ & solve reversed logistics ‘only’.
Mined
recycling
???????