Approval Granted for New England Offshore Wind Farm Construction

New England

The United States has given its final approval for an offshore wind project in New England, set to deliver renewable energy to Connecticut, Massachusetts, and Rhode Island through electricity and offshore renewable energy certificates (ORECs).

On Monday, the Bureau of Ocean Energy Management (BOEM) announced the approval of Avangrid's construction and operations plan for the New England Wind project, which will be located south of Martha's Vineyard, Massachusetts. This milestone marks the completion of federal reviews for the project, which has the potential to generate up to 2,600MW, enough to power over 900,000 households according to BOEM.

Avangrid, a subsidiary of the Spanish utility Iberdrola, plans to develop the project in phases known as New England Wind 1 and New England Wind 2, with operations for the initial phase scheduled to begin in 2029.

In April, BOEM endorsed the project design, which includes 125-129 turbines, aligning closely with Avangrid's proposals. In response to a joint offshore wind solicitation from Connecticut, Massachusetts, and Rhode Island in March, Avangrid submitted multiple bids anticipating OREC contracts for the New England Wind project. Avangrid proposed 791MW from the New England Wind 1 project and an additional 1,080MW from the New England Wind 2 system in combined offers to the three states, alongside individual bids tailored to each state's requirements.

Formerly known as Park City Wind and Commonwealth Wind, New England Wind 1 and 2 were previously contracted with Connecticut and Massachusetts, respectively. Avangrid recently renegotiated these agreements, citing challenges such as inflation, interest rate adjustments, and supply chain disruptions, which led to payments totaling $16.1 million to Connecticut utilities and $48 million to Massachusetts' electricity distributors to terminate the original contracts.

This development marks a significant step forward in offshore wind energy in the United States, reinforcing commitments to sustainable energy solutions across the New England region.

EU wind magnet supply resilience: roadmap to cut China dependence by 2030

EU Wind

Europe’s wind industry launched an EU wind magnet supply resilience roadmap to reduce reliance on China. The plan targets 30% “resilient” permanent magnets by 2030. It also aims for 50% by 2035, with 35% rare earths from resilient sources by 2030. This EU wind magnet supply resilience push aligns with the Critical Raw Materials Act and fast-growing offshore wind needs.

OEM actions and timelines to build resilient magnet supply

Manufacturers must move quickly to secure EU wind magnet supply resilience. OEMs will identify alternative magnet suppliers and sign MOUs by mid-2025. They should then qualify and onboard suppliers, with offtakes finalized by end-2026. As a result, resilient production should deliver magnets by late 2028. First “resilient wind turbines” could commission in 2029.

Policy tools, recycling, and market design to diversify sources

The roadmap defines resilience through diversified sourcing across mining, separation, and magnet making. It counts recycled magnets as resilient, supporting circular supply chains. Meanwhile, it urges raw-materials funds, grants, and loans to de-risk projects. It also proposes pooled EU demand, a magnet budget in the Innovation Fund, and a new EU magnet price index.

Europe’s plan responds to tightening Chinese export controls on rare earth magnets. Therefore, OEMs need flexible qualification criteria through 2028 to widen supplier pools. Stricter prequalification may start in 2030, pending review. Ultimately, resilient NdFeB supply should stabilize costs and timelines for offshore wind expansions.

The Metalnomist Commentary

This roadmap sets practical milestones that match turbine project cycles. Execution now hinges on rapid financing for European NdPr processing and magnet lines. Watch how recycling volumes and non-Chinese feedstock contracts scale through 2028.

China’s Dongfang Electric Unveils World’s Largest Offshore Wind Turbine

Dongfang Electric

China's Dongfang Electric Corporation (DEC), a leader in energy and electromechanical manufacturing, recently rolled out the world's most powerful offshore wind turbine in Fuzhou, Fujian province. The 26MW behemoth, launched on October 12, promises to advance the nation's offshore wind energy capabilities, with enough capacity to power 55,000 homes and slash CO₂ emissions by over 80,000 tons annually.

Innovation and Efficiency in Wind Power

Equipped with the latest third-generation semi-direct drive technology, DEC’s turbine marks a significant improvement in efficiency and sustainability. This design minimizes magnet requirements, reducing the consumption rate to approximately 0.1 tons per megawatt (t/MW), a significant drop from previous levels of 0.4 t/MW and well below the 0.5-0.7 t/MW standard in traditional direct drive turbines. This innovation not only conserves resources but also aligns with China’s commitment to lowering carbon output.

China's offshore wind industry has grown at a remarkable pace, with new installations in 2023 totaling 7.183GW—9% of the global additions of 79.37GW. Forecasts suggest the pace will continue, with 8-10GW expected in 2024 and 15GW by 2025. As of 2023, China’s cumulative offshore wind capacity stands at 37.7GW, around 7.9% of the nation's total capacity. In 2021, China surpassed the United Kingdom as the top global offshore wind energy producer, supported by government subsidies and incentives.

The surging growth in offshore wind is also driving demand for rare earth magnets, especially neodymium-iron-boron (NdFeB). The Global Wind Energy Council reports that demand for NdFeB magnets is projected to reach 35,200 tons by 2025, up from 27,400 tons in 2023, spurring magnet production expansion to meet this increased demand.

As China cements its place at the forefront of the global offshore wind industry, the impacts on environmental sustainability and resource efficiency are likely to be felt far beyond its borders.

Rio Tinto Kennecott wind VPPA secures 78.5MW for Utah copper decarbonization

Kennecott

The Rio Tinto Kennecott wind VPPA expands renewable sourcing for copper production. Rio Tinto signed a 15-year renewable energy supply agreement with TerraGen for its Kennecott copper mine. The Rio Tinto Kennecott wind VPPA covers 78.5MW of renewable power. Therefore, Kennecott copper mine decarbonization moves closer to execution.

TerraGen will deliver supply from the Monte Cristo I wind farm. The project totals 238.5MW in Hidalgo County and began commercial operations this week. Meanwhile, miners are shifting to long-term renewable contracts to manage carbon exposure. As a result, VPPAs are becoming a mainstream tool for metals producers.

TerraGen wind output supports a 15-year renewable energy supply agreement

The VPPA ties Kennecott’s load to wind generation attributes. Rio Tinto will source 78.5MW from the Monte Cristo I asset. However, a VPPA settles financially and does not physically deliver electrons to Utah. Therefore, the contract still supports emissions accounting through renewable attributes.

This structure can hedge power pricing and reduce reported emissions intensity. It can also align with customer demands for low-carbon copper. Meanwhile, copper buyers are tightening Scope 3 expectations across supply chains. As a result, renewable contracts can improve offtake competitiveness.

Kennecott adds solar capacity alongside wind procurement

Kennecott is building a broader clean energy portfolio. Rio Tinto installed a 5MW solar plant in 2023. It is also finishing a 25MW solar plant. Therefore, the Rio Tinto Kennecott wind VPPA complements on-site generation.

Kennecott operates integrated downstream infrastructure beyond the mine. The site includes a concentrator, smelter, refinery, and logistics assets. Meanwhile, these assets drive large, steady electricity demand. As a result, renewable contracting can support decarbonization across the full copper value chain.

The Metalnomist Commentary

Integrated copper sites win when they decarbonize smelting and refining, not only mining. Meanwhile, VPPAs offer speed, but they do not fix local grid constraints. Therefore, Rio Tinto should pair contracts with operational efficiency and on-site flexibility.

Rio Tinto signs new wind deal for Kennecott to lock in 78.5MW renewable power via VPPA

Rio Tinto, Australia

Rio Tinto signs new wind deal for Kennecott to expand renewable power coverage for its Utah copper operations. Rio Tinto signed a 15-year renewable energy supply agreement with Terra-Gen for the Kennecott copper mine near Salt Lake City. Rio Tinto signs new wind deal for Kennecott to secure 78.5MW of renewable energy from TerraGen’s Monte Cristo I wind farm in Texas. Therefore, the miner is tightening the link between low-carbon electricity and copper supply reliability.

TerraGen will supply power from the 238.5MW Monte Cristo I wind farm in Hidalgo County, Texas. The wind facility began commercial operations this week. Meanwhile, Rio Tinto structured the purchase through a virtual power purchase agreement. As a result, the company can decarbonize its electricity footprint without requiring direct physical delivery.

VPPA structure extends the Kennecott decarbonization roadmap

Rio Tinto signs new wind deal for Kennecott as part of a broader decarbonization push at the site. The company installed a 5MW solar plant in 2023 and is close to finishing a 25MW solar plant. Meanwhile, the VPPA adds longer-term renewable coverage and price visibility. Therefore, Kennecott’s energy strategy is moving from pilot assets to portfolio-style procurement.

This approach is increasingly common for energy-intensive metals. VPPAs can hedge power exposure and reduce reported emissions intensity. However, they require careful accounting and contract management. As a result, the structure matters as much as the headline megawatts.

Integrated mining, smelting, and refining makes energy a strategic lever

Kennecott is an integrated copper complex, not only a mine. The site includes a concentrator, smelter, and refinery, plus transport and storage infrastructure. Meanwhile, electricity and heat costs influence operating margins across the chain. Therefore, renewable procurement can support both decarbonization targets and resilience during power market volatility.

Copper buyers are also tightening sustainability requirements. Lower-carbon power can help miners defend market access and premium contracts. However, the benefits depend on consistent operations and transparent emissions reporting. As a result, Rio Tinto signs new wind deal for Kennecott with both cost and customer strategy in mind.

The Metalnomist Commentary

Copper is becoming an electricity story as much as a mining story. Meanwhile, integrated smelting sites face greater scrutiny on Scope 2 emissions. Therefore, long-dated VPPAs will keep spreading across the copper industry as customers demand verified low-carbon supply.

Vestas Sees 36% Surge in Turbine Orders Driven by Offshore Wind Momentum

Vestas

Offshore wind demand fuels rebound as average turbine selling price rises

Vestas expands service backlog and returns to profitability in Q1 2025

Danish wind turbine manufacturer Vestas recorded a 36% year-on-year increase in turbine orders during the first quarter of 2025, reaching a total of 3.1GW. The focus keyphrase "Vestas turbine orders" reflects a clear resurgence in wind sector activity, particularly within offshore wind markets.

Offshore turbines accounted for 1.5GW of the new orders, offsetting a decline in onshore demand. Notably, Vestas secured a 1GW order for the Nordlicht 1 offshore wind farm in Germany, highlighting Europe’s continued leadership in offshore renewables.  Meanwhile, U.S. demand remained subdued, with orders falling from 1.1GW to 189MW due to policy uncertainty.

Turbine deliveries also rose sharply, up 38% year-on-year to 2.4GW, with a notable increase in offshore volumes. The average selling price improved to €1.24mn/MWh from €1.18mn, driven by the growing share of offshore installations, which tend to command higher margins.

Service operations also expanded. The value of Vestas’ service backlog rose to €37bn, with its global service portfolio growing to 157GW. Regionally, the firm added 2GW in EMEA, 5GW in the Americas, and 1GW in Asia-Pacific, reflecting robust multi-regional engagement.

Financially, Vestas returned to profitability, posting a €5mn gain versus a €75mn loss a year earlier. Quarterly revenue jumped 29% to nearly €3.5bn, showcasing operational recovery and pricing power in a competitive market. However, its 27GW project portfolio still awaits order conversions.

The Metalnomist Commentary

Vestas’ offshore pivot appears to be paying off, both in order volume and financial performance. As global policy incentives around offshore wind accelerate, Vestas is strategically positioned to dominate new installations—especially in Europe and emerging Asia-Pacific markets.

EIB and Deutsche Bank to Boost European Wind Power with €1 Billion Investment

In a significant push for renewable energy, the European Investment Bank (EIB) is set to provide a €500 million ($541 million) counter-guarantee to Deutsche Bank. This backing will enable Deutsche Bank to establish a €1 billion portfolio aimed at investing in wind farms across the European Union. This initiative marks the first step in the EIB's broader €5 billion plan to support wind power equipment manufacturers within Europe, a part of the EU's comprehensive wind power strategy designed to sustain a competitive and robust wind energy supply chain.

The EIB and Deutsche Bank's collaboration is expected to trigger private investments amounting to up to €8 billion. The EIB highlighted wind power as a significant success for the EU but acknowledged current challenges such as supply chain disruptions, inflation, and slow project permitting. The EU's net zero industry act, approved in May, aims to address these permitting issues and enhance the production rate of net zero technologies within the bloc.

The EIB's €5 billion initiative is projected to add 32GW of wind power capacity in the EU. According to the International Energy Agency (IEA), the share of wind and solar power in the EU's total energy supply is expected to increase to 30% this year, surpassing the output from fossil fuels.

As the EU's lending arm, owned by its member states, the EIB increased its climate finance to €44.3 billion last year. The bank ensures that all new projects it finances align with the Paris climate agreement and explicitly excludes investments in fossil fuels that do not contribute to CO2 emission reductions.

Revising Germany's Offshore Wind Targets: Navigating Challenges and Strategic Alliances

Germany's BWO

Germany faces the need to revise its ambitious offshore wind energy target of 70GW by 2045, according to the Bundesverband der Windparkbetreiber Offshore (BWO). The association highlights emerging challenges in the sector, particularly the "wake" effects that reduce turbine efficiency, prompting a rethink of the operational and strategic aspects of Germany's renewable energy goals.

Impact of Wake Effects on Turbine Efficiency

Stefan Thimm, managing director of BWO, raised concerns about the "wake" effects, where turbines slow down the wind and create swirling air behind the rotors, leading to a significant reduction in the operating hours of offshore turbines. This phenomenon was evident in the last German offshore wind tender, which saw minimal activity and lower-than-expected prices, indicating a potential oversaturation and diminishing returns from currently designated zones.

Exploring New Horizons: Collaboration with Denmark

Given the limited availability of suitable areas in German waters, Thimm suggests that Germany might expand its offshore wind capacity by building wind farms in Danish waters. He proposed a cooperation agreement with Denmark, whose power demand is just 5% of Germany's, to use Denmark's exclusive economic zone for future German wind projects. This strategic move could help Germany achieve its scaled-up renewable energy targets while mitigating spatial constraints.

Shifts in Tendering and Policy Approaches

The discussion also extends to how Germany's renewable energy tendering process could evolve. Ministers from Germany's North Sea states have proposed shifting the focus from capacity-based tenders to those based on actual electricity generation. This approach would address system stability and integrate excess photovoltaic power more effectively, according to Lower Saxony's economy minister Olaf Lies.

Furthermore, upcoming federal elections in February 2025 could lead to significant policy shifts. The CDU/CSU, potentially the next ruling party, has expressed skepticism about the current government's rigid climate targets and its interventionist renewable policies, suggesting that Germany's renewable strategy may see substantial revisions in the near future.

NdFeB magnet recycling feedstock expands as HyProMag adds EV and wind rotors

NdFeB magnet recycling

NdFeB magnet recycling feedstock is widening beyond small electronics as HyProMag USA expands its supply pipeline. The company will now include rotors from electric motors, wind turbines, and other equipment in its feedstock agreement. Therefore, NdFeB magnet recycling feedstock could scale faster as larger, bulk streams enter the collection system.

NdFeB magnet recycling feedstock growth follows HyProMag’s July partnership with Intelligent Lifecycle Solutions, also known as ILS. The updated scope adds electric motors, wind turbine magnets, speaker assemblies, and MRI machines alongside hard disk drives. Meanwhile, the broader mix can improve resilience when any single scrap category tightens.

New collection streams target bulky magnets from electrification assets

NdFeB magnet recycling feedstock now includes rotor-based material that typically carries higher magnet mass per unit. This change matters because EV drivetrains and wind turbines hold concentrated rare earth magnet content. As a result, the expanded intake can support higher throughput and more predictable procurement.

ILS will continue to secure and store NdFeB material from HDDs at pre-processing sites in Williston, South Carolina and Reno, Nevada. The network can consolidate, sort, and stage material before downstream processing. However, bulk rotor streams may require different dismantling and demagnetisation steps than HDD-derived magnets.

Fort Worth commissioning links feedstock to scalable output capacity

NdFeB magnet recycling feedstock expansion supports HyProMag’s push toward commissioning a plant in Fort Worth, Texas. The partners will form a joint team to accelerate purchases as the facility advances. Therefore, procurement speed becomes a near-term competitive lever as more recyclers chase the same magnet-rich scrap.

The Texas plant is designed for 750 tonnes per year of recycled sintered NdFeB magnets and 807 tonnes per year of NdFeB co-products. The long operating-life plan signals an industrial-scale strategy rather than a short pilot cycle. Meanwhile, downstream users will watch qualification, purity, and consistency as the product slate develops.

The Metalnomist Commentary

NdFeB magnet recycling feedstock from motors and wind assets can unlock bigger volumes than HDD-centric sourcing. However, collection logistics and contamination control will decide real yields. Therefore, HyProMag’s joint procurement model with ILS looks strategically timed.

Vattenfall to Invest €5 Billion in German Renewables by 2028

Vattenfall

Massive Investment in Renewable Energy

Swedish state-owned energy giant Vattenfall has unveiled ambitious plans to invest over €5 billion in Germany by 2028 as part of its commitment to the energy transition. The initiative underscores Germany's growing importance as a hub for renewable energy development.

Focus Areas: EV Infrastructure and Solar-Battery Integration

A significant portion of this investment, approximately €500 million, is earmarked for developing electric vehicle (EV) charging infrastructure across Germany. This aligns with the increasing demand for a robust EV ecosystem to support the shift towards carbon-neutral mobility.

Vattenfall also aims to expand its solar energy portfolio by building 500MW of solar parks annually. These parks will be coupled with 300MW of large-scale battery energy storage systems, ensuring grid stability and compensating for fluctuations in solar power generation.

Wind Power Expansion

The company's wind energy projects are equally impressive. Vattenfall is set to bring the Nordlicht 1 and 2 wind farms online by 2028, delivering a combined capacity of 1.6GW. Although Nordlicht 1's initial operational date was planned for 2027, it has been slightly delayed.

In its Q3 2024 financial results, Vattenfall highlighted that it had already added 1.3GW of new wind capacity over the past year, a testament to its leadership in renewable energy development.

A Step Towards Energy Transition

Vattenfall’s investment marks a pivotal step in Europe’s energy transition. By focusing on solar, wind, and EV infrastructure, the utility not only contributes to Germany's climate goals but also fortifies its position as a leader in sustainable energy solutions.

BHP renewable power for copper projects accelerates South Australia’s low-carbon shift

BHP

BHP renewable power for copper projects is moving from strategy to execution in South Australia. The new deals with Neoen link Olympic Dam, Carrapateena and Prominent Hill to dedicated wind and battery assets, reshaping their long-term emissions profile. As a result, BHP renewable power for copper projects is becoming central to the group’s decarbonisation roadmap and its compliance with Australia’s safeguard mechanism.

Wind, storage and safeguard compliance for Olympic Dam

BHP will source 100MW of renewable electricity from Neoen’s 300MW Goyder North wind farm and 200MW Goyder battery. This follows an earlier contract for 70MW from Goyder South, which has supplied Olympic Dam since July. Together, these agreements should cover about 70pc of BHP’s copper-related electricity demand in South Australia by 2030.

Olympic Dam falls under Australia’s safeguard mechanism, where on-site generation counts towards covered scope 1 emissions. In 2023-24, Olympic Dam produced 244,321t of CO₂e, staying just below its 246,875t baseline. Therefore, BHP renewable power for copper projects is not just an ESG narrative but a direct tool for avoiding the surrender of additional ACCUs or safeguard credits.

Meanwhile, BHP still surrendered 47,000 ACCUs across 16 other facilities, including iron ore, coal and nickel operations. This highlights how decarbonisation progress remains uneven across the portfolio. However, the South Australian power strategy shows how dedicated renewable contracts can reduce both compliance risk and long-term power-price exposure.

Copper decarbonisation, diesel displacement and long-term risk

BHP is targeting a 30pc cut in operational greenhouse gas emissions by 2029-30 versus 2019-20 levels. The group has already reduced operational emissions to 8.7mn t CO₂e, a 36pc decline from that baseline. In this context, BHP renewable power for copper projects provides a tangible bridge between climate commitments and actual asset-level performance.

The company ultimately aims for net-zero operational emissions by 2050, mainly by displacing diesel in its mining fleets. Progress here has lagged because of technical delays in low-emission vehicle deployment. However, locking in large-scale renewable power for copper operations buys valuable time while mobile-equipment solutions mature.

For customers and policymakers, BHP renewable power for copper projects offers a clearer line of sight to lower-carbon copper supply. This matters as OEMs, grid operators and EV supply chains increasingly differentiate between standard and low-emission copper units. It also strengthens South Australia’s positioning as a hub for renewable-powered mining and processing.

The Metalnomist Commentary

BHP’s structured shift into contracted wind and storage underscores how decarbonisation is becoming a core competitiveness issue for copper miners. For metals buyers, the next phase will involve translating these renewable power deals into quantifiable, auditable carbon advantages at the cathode, rod and cable level.

Global Rare Earth Magnet Production Set to Surge Amid Expanding NEV and Wind Sectors

Rare Earth Magnet

Expanding Global Demand for Rare Earth Permanent Magnets

Global rare earth permanent magnet output is poised for sustained growth as new and expanded manufacturing facilities come online worldwide. Demand from new energy vehicles (NEVs), wind turbines, and energy-efficient technologies is driving this acceleration. According to market participants, global output is projected to climb from 270,000 tonnes in 2023 to 310,000 tonnes in 2025, exceeding 330,000 tonnes by 2027.

China remains dominant, expected to control up to 89% of global magnet output by 2027, despite global diversification efforts spurred by export controls on medium and heavy rare earths.

China’s NEV production reached 8.23 million units between January and July 2025, marking a 39% increase year-on-year, while exports surged 85%. The China Association of Automobile Manufacturers (CAAM) forecasts total sales of 16 million NEVs in 2025, up from 12.9 million in 2024. Each vehicle uses 3–5 kilograms of rare earth magnets, boosting magnet demand to an estimated 87,000 tonnes by 2027. Similarly, the wind turbine sector will require 19,620 tonnes of magnets in 2025, compared with 12,880 tonnes in 2020, underscoring the link between clean energy growth and rare earth magnet consumption.

Supply Chain Expansion Beyond China

Leading magnet manufacturers are racing to expand production capacity. In China, Jinli Magnet (JLM) plans to raise its high-performance NdFeB magnet output to 60,000 t/yr by 2027, up from 35,000 t/yr today. Ningbo Yunsheng is expanding its Baotou plant to 15,000 t/yr, with phased commissioning through 2026. Zhongke Sanhuan increased its sintered NdFeB capacity to 25,000 t/yr and bonded magnets to 1,500 t/yr, serving NEV, robotics, and advanced transportation sectors.

Outside China, MP Materials aims to produce 10,000 t/yr of magnets by 2028 with U.S. Department of Defense backing, while Neo Performance Materials will begin 2,000 t/yr of sintered NdFeB magnet output in 2026. Vulcan Elements and E-VAC Magnetics are also advancing U.S. production, with the latter supporting General Motors’ EV lineup under a long-term contract. These moves reflect a broader global effort to localize magnet supply chains and mitigate reliance on China amid rising geopolitical risk.

The Metalnomist Commentary

The sharp expansion in rare earth magnet capacity reflects the industrial urgency to secure critical materials for the energy transition. While China’s dominance will persist, Western and Japanese investments signal a strategic realignment toward supply chain resilience. The balancing act between technological advancement and resource independence will define the next decade of the magnet and rare earth industries.

Inner Mongolia Luneng rare earth metal plant boosts PrNd supply and prices

Inner Mongolia Luneng rare earth

The Inner Mongolia Luneng rare earth metal plant marks another expansion in China's strategic magnet materials capacity. The Inner Mongolia Luneng rare earth metal plant will add 10,000 t/yr of praseodymium-neodymium metal capacity in Baotou. As a result, the Inner Mongolia Luneng rare earth metal plant will further tighten China’s grip on the global rare earth magnet supply chain.

Baotou strengthens its role as China’s rare earth capital

Inner Mongolia Luneng has secured government approval to build a high-purity rare earth metal line in Baotou. The project will sit inside the rare earth new materials industrial complex at Bayan Obo industrial park. This location links the plant directly to upstream rare earth resources and downstream alloy and magnet makers.

The company will invest Yn265.93mn ($37.35mn) to construct the 10,000 t/yr PrNd metal facility. Construction is expected to take 24 months, although no firm start-up date has been disclosed. However, the project clearly targets surging demand from new energy vehicles, wind turbines, robotics and electronics.

Praseodymium-neodymium metal is the core raw material for high-performance permanent magnets. These magnets power traction motors in EVs and generators in modern wind turbines. Therefore, any new PrNd metal capacity in Baotou has direct implications for the global energy transition supply chain.

Praseodymium-neodymium prices climb on tighter spot supply

Spot prices for praseodymium-neodymium metal have risen sharply since late October. Higher oxide feedstock costs, tighter spot availability and stronger magnet sector purchases all support the uptrend. Futures trading on the Zhonglianjin platform has also pushed oxide prices higher, feeding through to metal.

Prices for 99.9pc PrNd metal increased to Yn680-685/kg ex-works by 10 November. That mid-point represents an 11pc gain from late October levels. Meanwhile, 99pc PrNd oxide prices climbed nearly 10pc to Yn557-562/kg over the same period. These moves highlight how quickly sentiment can shift in a relatively concentrated market.

Magnet producers are responding to firm orders from EV, wind and consumer electronics customers. As a result, they are willing to pay higher prices to secure PrNd metal and oxide supplies. In this context, Baotou’s new high-purity capacity could ease domestic tightness while reinforcing China’s pricing influence worldwide.

The Metalnomist Commentary

Luneng’s new PrNd metal project underlines how China continues to invest aggressively along the rare earth magnet value chain. Additional high-purity capacity in Baotou will support local magnet makers but may deepen import dependence for overseas OEMs. Global EV and wind players will closely watch whether new non-Chinese PrNd projects can meaningfully diversify supply before this plant comes online.

Global Magnet Demand Trends and Forecasts for 2024

Magnet

The global demand for rare earth neodymium-iron-boron (NdFeB) magnets is set to experience varied trends across different sectors in 2024, according to the latest insights from Chen Zhanheng, the secretary-general of China's Rare Earth Industry Association, Acrei. This analysis reveals significant fluctuations influenced by technological advances and market dynamics.

Key Sector Insights

The New Energy Vehicles (NEVs) sector remains the primary consumer of NdFeB magnets, accounting for 35% of the global demand. Chen projects an increase in magnet demand for NEVs by 2.42% to 43,018 tonnes in 2024. Conversely, other sectors like wind turbines and electric bicycles are expected to see a downturn in demand. Specifically, magnet demand for wind turbines is anticipated to drop significantly by 32% to 4,848 tonnes.

Inverter air conditioners are another significant sector, with expected demand to rise by approximately 29% to 30,154 tonnes, demonstrating robust growth. However, the forecast for the smartphone industry shows a minor decrease of 0.87% in magnet demand.

Economic and Production Factors

Chen attributes these demand shifts to multiple factors including economic policies, production outputs, and sector-specific growth. For instance, China's elevator production saw a decline, which correlates with the decreased magnet demand in the energy-saving elevator sector.

The overall output of air conditioners globally is also expected to rise by 10.75% in 2024, reflecting a direct impact on magnet demand in this sector. However, the slowdown in China's real estate and infrastructure development has negatively impacted several sectors, including elevators and wind turbines.

US Finalizes 45X Tax Credits to Boost Clean Energy Manufacturing

US renewable energy projects

The US Department of the Treasury and Internal Revenue Service has finalized rules for the 45X advanced manufacturing tax credit, an initiative under the Inflation Reduction Act of 2022. The credit is designed to spur investment in domestic manufacturing for components used in wind, solar, and battery systems, reducing reliance on imports and strengthening the US clean energy supply chain.

Key Highlights of the 45X Tax Credit

• Incentives for Components:

- Solar cells: 4¢/W

- Solar modules: 7¢/W

- Photovoltaic wafers: $12/m²

- Wind turbine blades: 2¢/blade

- Battery cells: $35/kWh

• Mineral Production Tax Credit: US producers of critical minerals like aluminum, cobalt, graphite, lithium, and nickel can claim 10% of production costs.

Phased Expiry of Credits

The credits will begin phasing out after 2030:

• 75% of the original value for components sold in 2030.
• 50% for 2031.
• Expiring completely after 2033.

Impact on the Renewable Sector

The 45X credit is expected to bolster the US solar industry, which has long relied on imported photovoltaic cells and modules, primarily from China and Southeast Asia. These imports are subject to tariffs and trade investigations, creating additional hurdles for developers.

US-based companies such as First Solar, Enel, and Qcells have already announced plans to establish manufacturing facilities in the US, citing the credits as a critical driver.

A Step Towards Energy Independence

Energy Secretary Jennifer Granholm highlighted the broader implications of the credits:

"These final rules will help strengthen energy dominance while reducing emissions and leveling the playing field for US companies."

With solar and wind energy demand continuing to grow, the 45X tax credit represents a significant step in building a robust, domestic clean energy manufacturing ecosystem, ensuring the US remains competitive in the global energy transition.

Australia's Iluka Predicts Increased Rare Earth Demand by 2033

iluka resources

According to Tom O'Leary, CEO of Australian mineral producer Iluka Resources, the evolving global demand driven by renewable energy technologies is expected to significantly increase the consumption of neodymium, praseodymium, dysprosium, and terbium by 2033. O'Leary shared these insights at the International Rare Earth Industry Association's annual conference in Tokyo, Japan, last week.

Iluka anticipates that the ongoing transition to renewable energy, particularly through electric vehicles (EVs) and wind power, will continue to drive the demand for rare earth materials over the next decade. O'Leary stated that global demand for praseodymium-neodymium and dysprosium/terbium is projected to rise from 63,000 tons per year (t/yr) in 2023 to between 93,000 and 171,000 t/yr by 2033. Specifically, the consumption of dysprosium/terbium is expected to grow from 1,100 t/yr to between 1,900 and 5,100 t/yr during this period.

In the EV sector alone, the demand for praseodymium-neodymium is expected to increase from 12,000 t/yr in 2023 to between 33,000 and 62,000 t/yr by 2033. Similarly, the EV sector's demand for dysprosium and terbium is likely to rise from 500 t/yr to between 1,300 and 3,000 t/yr over the same timeframe.

The wind power sector is also expected to see a significant rise in praseodymium-neodymium consumption, projected to grow from 6,000 t/yr in 2023 to 26,000 t/yr by 2033. The demand for dysprosium and terbium in this sector is anticipated to increase from 200 t/yr to between 300 and 1,600 t/yr.

Other application fields, including automotive, consumer electronics, industrial applications, and home appliances, are forecasted to consume between 53,000 and 83,000 t/yr of praseodymium-neodymium by 2033, up from 45,000 t/yr in 2023. The consumption of dysprosium and terbium in these fields is expected to grow from 300 t/yr to between 400 and 600 t/yr during the same period.

Iluka predicts that by 2030, 35% of global demand for dysprosium and terbium will come from e-mobility sectors, and 20% from wind power. "The global supply of dysprosium and terbium in 2030 is projected to fall short of total demand," O'Leary noted. "Iluka's Eneabba refinery is expected to account for more than half of the supply outside China once it starts commercial production by 2025."

Iluka, which produces zircon, ilmenite, and rutile in Australia and Sierra Leone, aims to achieve an annual output capacity of up to 23,000 t/yr of rare earth oxide (REO), including 5,500 t/yr of praseodymium-neodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery, supported by a $1.25 billion non-recourse loan from the Australian government.

The company has also signed an initial agreement with rare earths developer Northern Minerals to supply concentrate to Iluka's Eneabba refinery, set to commence production in 2025-26. This agreement includes the provision of 30,500 t of rare earth concentrates from Northern Minerals' Browns Range project, with an annual supply of 5,000 t for the first four years.

Iluka has a secure supply of heavy rare earths from stockpiles at its Eneabba refinery and additional supply options from its Balranald project and Wimmera deposits in New South Wales and Victoria. The Eneabba refinery can be supplied for five years with its stockpile of 1 million t of high-grade rare earth concentrate, readily available at the surface. The Balranald project is expected to deliver an additional 5,000 t/yr of rare earth concentrate from 2026. Feasibility studies are ongoing at the Wimmera deposit, which has the potential to supply 15,000 t/yr of rare earth concentrates over a mine life exceeding 25 years.

Surging Demand for NdFeB Magnets Driven by EVs and Renewables

CSRE

The demand for high-performance neodymium-iron-boron (NdFeB) magnets is expected to surge, driven by key applications such as electric vehicles (EVs), wind turbines, and energy-saving technologies. According to Zhang Anwen, counsellor at the Chinese Society of Rare Earths (CSRE), global consumption of NdFeB magnets is projected to reach 400,000 tons annually by 2030, a significant rise from 10,000 tons in 2023. The EV industry alone accounts for 30% of global magnet demand, followed by inverter air conditioners and industrial robots, both at 16%, and wind turbines at 12%.

A Rise in China’s Production

China’s magnet production has seen remarkable growth in recent years. In 2023, China produced 270,000 tons of rough NdFeB magnetic materials, an 18% increase compared to the previous year, and nearly double the 140,000 tons produced in 2025. The production of sintered NdFeB magnets alone climbed to 255,200 tons in 2023, further solidifying China’s dominance in the global magnet market. The country's output of samarium-cobalt magnets also rose to 3,723 tons in 2023, continuing a growth trend in the production of rare earth magnetic materials.

Key Applications Fueling Demand Growth

The automotive sector, particularly EVs, remains the largest consumer of NdFeB magnets. The demand for NdFeB magnets in China’s automobile industry alone reached 36,200 tons in 2023. The electronic power steering (EPS) system in the global market also contributed significantly, with an estimated 12,000 tons used. Additionally, China's production of industrial robots has driven up magnet consumption, as the country accounted for 72% of global robot production in 2023. The elevator and inverter air conditioner sectors also show robust growth, with magnet consumption in these areas increasing steadily over the years.

China's rare earth smelting and separation output reached 337,300 tons of rare earth oxide (REO) in 2023, a massive leap from 96,900 tons in 2010, driven by both plentiful feedstock supplies and the growing demand for magnets. With these figures in mind, the future of NdFeB magnets looks bright, particularly as the world continues its transition to cleaner energy and advanced technologies.

Cyclic Materials Invests $20mn in REE Recycling Facility

Cyclic Materials

Canada-based recycler expands rare earth recovery efforts with new Arizona plant to boost North American REE supply chain

Building a U.S. Rare Earth Recycling Hub

Cyclic Materials has committed $20mn to a new REE recycling facility in Mesa, Arizona. The investment marks a pivotal step in scaling rare earth element (REE) recovery from end-of-life components. The new plant will target waste streams from vehicles, electronics, and industrial devices. It will help process 155,000 metric tonnes annually across the U.S. Southwest.

Rare Earth Supply Chain Independence

The Mesa facility reinforces the company’s REE recycling strategy. Cyclic Materials aims to reduce reliance on foreign rare earth supplies, especially from China. CEO Ahmad Ghahreman emphasized the importance of circular supply chains for stable and sustainable access to critical materials. The company recovers REEs from EV motors, MRI equipment, wind turbines, and data centers.

Strategic Partnerships and Market Outlook

Cyclic Materials collaborates with major players like Solvay, Vattenfall, Synetiq, and Vacuumschmelze. These partnerships enhance its ability to extract permanent magnets from complex components. As a result, the project supports the U.S. ambition to localize clean tech materials and reduce REE import dependency.

The Metalnomist Commentary

Cyclic Materials’ $20mn investment signifies a long-term bet on REE recycling amid rising global demand for magnets used in EVs and wind energy. With strategic partnerships and domestic processing, this move strengthens North America's critical minerals security while aligning with decarbonization and supply chain goals.

Asia leads renewable capacity growth in 2024, but gaps widen

IRENA

Capacity milestones and technology mix

Asia leads renewable capacity growth in 2024 and shapes global additions. Asia leads renewable capacity growth with 71% of 582GW installed. Total renewable capacity rose 15% to 4.4TW. Solar added 453GW, while wind added 114GW. Renewables now hold 46.2% of global capacity, near fossil’s 47.3%.

Tripling target, regional gaps, and investment

Asia leads renewable capacity growth, yet the world lags the 2030 tripling goal. At today’s pace, capacity reaches only 10.3TW by 2030. Growth must accelerate to 16.6% yearly. Africa, Eurasia, Central America, and the Caribbean added just 2.8%. Closing gaps needs policy, finance, and technology transfer. Global energy investment will hit $3.3tn in 2025, with two-thirds “clean.” China remains the largest clean-energy investor.

Strong Asian momentum lifts solar, wind, and grid component demand. However, uneven access to capital limits broader adoption. Therefore, stable frameworks and concessional funding remain critical. Developers must also expand storage and transmission to absorb growth.

The Metalnomist Commentary

Asia’s surge is real, but global equity still lags. Expect supply-chain tightness in inverters, transformers, and HV equipment. Watch policy pipelines and grid upgrades to sustain installation velocity.

US Senate energy and tax bill threatens clean energy incentives

US Senate

The US Senate energy and tax bill is set to reshape the country’s energy landscape. Senate Republicans introduced measures that slash clean energy tax credits, expand fossil fuel leasing, and extend trillions in tax cuts. The vote could pass as early as today, with deep consequences for renewable investors. The US Senate energy and tax bill also introduces excise taxes on wind and solar projects sourcing equipment from "prohibited foreign entities."

Major cuts to clean energy programs

The bill eliminates most climate provisions from the Inflation Reduction Act, including $7,500 EV tax credits and wind-solar incentives. Renewable industry leaders warn of mass job losses and halted investment. Meanwhile, biofuels, nuclear, and geothermal maintain partial support under adjusted credit structures. The new hydrogen credit deadline is January 2028.

Fossil fuels gain momentum

Oil and gas benefit heavily from the bill. It mandates Gulf of Mexico lease sales, reduces royalty rates, and restores tax deductions worth hundreds of millions. As a result, domestic drilling will accelerate. President Trump has demanded Congress finalize the bill before 4 July, framing it as a cornerstone of US energy independence.

The Metalnomist Commentary

The bill represents a decisive shift toward fossil fuel prioritization at the expense of renewables. For metals and critical minerals investors, reduced clean energy incentives may slow downstream demand, but fossil fuel expansion could sustain industrial inputs tied to oil and gas infrastructure.