As the global transition to renewable energy surges forward, it is becoming even more apparent that the current rare earth element supply chain puts the United States in a precarious position: rare earth elements are critical to building a strong clean energy infrastructure, but mining those elements can create serious environmental harm.

Rare earth elements are used to make rare earth magnets, which are essential components of the leading-edge electric technology that is making the transition to clean energy possible. Essentially, magnets create the energy and motion in the electric motors and generators that power our society.

China currently dominates the global supply chain for REEs, overseeing more than 90% of the supply chain for rare earth raw materials and 85% of manufacturing for permanent magnets. The vast majority of countries, including the U.S., rely on China to provide them with rare earth materials and products critical to powering a host of electric technologies and clean energy economy products

China has strategically cultivated this global dependency over the past several decades through major investments in their infrastructure, allowing them to establish a monopoly that leverages subsidized prices to deter any competitors from entering the global market. As a result, the global rare earth supply chain remains vulnerable to domestic Chinese policy shifts, leaving the market susceptible to price volatility and frequent disruption. 

Rare earth elements are increasingly important as the world moves away from fossil fuels in favor of low-carbon technologies, which makes the U.S.'s reliance on China in this sector an even more pressing threat to U.S. national security.

Lawmakers have been aware of the need to create a domestic supply chain in the United States for many years. However, the issue has proven difficult to address because of China’s control over pricing and the risks attached to resource availability, both of which create significant barriers to market entry. Despite these challenges, Noveon offers an All-American solution.

There is more than one way to make a magnet, and Noveon has developed a process that reuses end-of-life magnets to create fully-formed rare earth magnet products. By re-envisioning how magnets are manufactured, Noveon has created a closed-loop supply chain that reduces the price volatility and availability risks that have challenged the industry for years as a result of China’s monopoly.

By reusing rare earths from existing end-of-life magnets, Noveon is able to completely skip the mining step. This allows Noveon to build high-quality magnets in fewer steps while avoiding significant geopolitical risks and environmental harm. Noveon’s high-performance, American-made magnets are leading the way to a strong rare earth domestic supply chain in the United States.

It is critical that nations begin to invest in their domestic rare earth elements supply chain to end China’s monopoly. This is no easy task, but the rare earth element supply chain can be decentralized through innovative technologies and increased government investments.