Department of Energy Backing Rare Earth Recycling

Rare earth consumers are becoming increasingly concerned as to what the future holds with regards to potential supply channels.

The rare earth market is the very definition of unsettled, with 95 percent of global supply controlled by a single source and high-potential, up-and-coming projects continuously delayed due to public protests and regulatory uncertainty.

Rare earth reclamation

As a result of these factors — and many others — more and more manufacturers are beginning to shift their focus to rare earth element (REE) reclamation. Until now, REE extraction techniques have been undertaken on a relatively minor scale, have been costly and have required highly-controlled conditions.

A number of Japanese vehicle manufacturers have recently made clear their intentions to attempt to either minimize their reliance on REEs or develop a recycling process aimed at decreasing reliance on foreign supply. Earlier this year, Toyota (TSE:7203) announced that it has developed a method to manufacture hybrid and electric vehicles without the use of REEs, while Honda (NYSE:HMC) stated that it is developing the world’s first mass-production rare earth recycling process.

However, last week, in an announcement that has managed to remain under the radar of almost all mainstream media outlets, scientists at the US Department of Energy’s (DOE) Ames Laboratory confirmed that they are working towards creating a method to remove neodymium from the mix of other materials in magnets.

Initial results positive

According to the lab, initial results show that recycled materials maintain the same properties that make rare-earth magnets so useful.

This is not the first time the lab has come under the spotlight. In the 1990s, the lab’s scientists successfully developed a process to remove REEs from neodymium-iron-boron magnet scrap using molten magnesium. However, at that time, the price of rare earths was not a concern, so the aim of that project was entirely unrelated to the current one; the team was seeking to produce a mixture of magnesium and neodymium as neodymium adds extra strength to the alloy.

REE prices have surged over the past three years, and global supply concerns have resulted in the World Trade Organization launching an investigation into China’s export and tariff policies, so it is unsurprising that research on rare earth recycling has been stepped up a notch.

“Processing technique works well”

Commenting on the project and its aims in a press release issued by the US Department of Energy, Ryan Ott, the scientist leading the research, explained, “[n]ow the goal is to make new magnet alloys from recycled rare earths. And we want those new alloys to be similar to alloys made from unprocessed rare-earth materials.”

“It appears that the processing technique works well. It effectively removes rare earths from commercial magnets.”

The project gained interest from a number of parties; however, it was given a significant boost last year when the Ames Laboratory signed a memorandum of understanding with the Korean Institute of Industrial Technology to promote international collaboration in rare earth research. The memorandum effectively established a framework under which the two parties will “work together to make advancements in rare-earth processing techniques … transfer rare-earth discoveries to industrial applications and … educate the next generation of rare-earth scientists and engineers.”

A process defined

Describing the extraction process, Ott explained, “[w]e start with sintered, uncoated magnets that contain three rare earths: neodymium, praseodymium and dysprosium. Then we break up the magnets in an automated mortar and pestle until the pieces are 2-4 millimeters long.”

The magnet pieces are then transferred to a mesh screen box, which is placed in a stainless-steel crucible where lab technicians add sections of solid magnesium. A radio frequency furnace is then used to heat the material, causing the magnesium to melt while the magnet sections remain solid.

“What happens then is that all three rare earths leave the magnetic material by diffusion and enter the molten magnesium,” he said. “The iron and boron that made up the original magnet are left behind.”

During the final stage of separation, the molten magnesium and rare earth mixture is cast into an ingot and cooled. Technicians then boil off the magnesium, leaving only the REE materials behind.

“We’ve found that the properties of the recycled rare earths compare very favorably to ones from unprocessed materials,” said Ott. “We’re continuing to identify the ideal processing conditions.”

He noted that the next stage of the project will see researchers working to optimize the extraction process. In the future, the team hopes to be able to demonstrate it in on a larger, more industrial scale.

“We want to help bridge the gap between the fundamental science and using this science in manufacturing,” he said. “Ames Lab can process big enough amounts of material to show that our rare-earth recycling process works on a large scale.”

What now?

While this announcement is unlikely to send shock waves through the market, it has highlighted the momentum being gained by agencies that are attempting to seek out REE alternatives and methods of reuse. Whereas past projects have been largely limited by corporate financial backing, many within the sector will be watching this project with a heightened level of interest due to the parties involved.

While a process such as this one might still be years away from becoming commercially relevant, it has highlighted the market’s craving for innovation and advancement in a market that has, at times, been held back through market volatility and an unpredictable supply monopoly.

Securities Disclosure: I, Adam Currie, hold no direct investment interest in any company mentioned in this article.