50 percent from alternative sources by 2035: Wind energy sector and the Federal Ministry for Economic Affairs and Energy present a resilience roadmap.
Permanent magnets made from rare earths are crucial components in wind turbines. They’re essential in offshore installations, where they enable compact, robust, and low-maintenance generator systems. But most of these high-tech parts and the raw materials needed to make them come from China. According to the EU, 98 percent of its demand for rare earth magnets is currently met through Chinese imports.
To reduce this dependency, Europe’s wind industry and Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) have released a “resilience roadmap.” The plan outlines a goal of sourcing 30 percent of permanent magnets from alternative suppliers by 2030. By 2035, that share should rise to 50 percent. The plan also calls for at least 35 percent of rare earths to come from more resilient sources starting in 2030. Interim targets include securing supply agreements with alternative vendors by the end of 2026.
Boosting investment and coordinating demand
To support this shift, the BMWi plans to back the industry through measures like funding for overseas investments and energy research. Partnerships with other countries are also on the table. A coordinated European purchasing mechanism for permanent magnets is being considered, along with financial support from the EU Innovation Fund. The roadmap also suggests creating a new price index to complement the existing one for Asian metals.
Whether these ambitious diversification targets can be met remains to be seen. So far, Japan is the only major producer of rare earth magnets outside China. While Japanese production is considered high quality, it accounts for only about 8 to 9 percent of the global market. Other countries, including the United States, Estonia, and South Korea, are still building up production capacities.
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