Rare Earth Elements Speculation

The term ‘rare earth metals’ or ‘rare earth elements’ (REEs) is misleading since these metals are not that rare. Cerium is as common as copper in the earth’s crust. Nevertheless, between 2010 and January 2012 prices for rare earth metals rose sharply. This had a large impact on design and engineering as rare earth metals are commonly used to make permanent motors (PM).
The usefulness of such rare earth elements as neodymium and dysprosium is that they can be used to make high-flux permanent magnets that tolerate extreme temperatures without demagnetizing.
The magnetic field produced from rare earth metals often exceeds 1.4 Teslas. In contrast, ferrite magnets produce a magnetic field of just 0.5 to 1 Tesla.
Due to this greater strength and the lightweight nature of rare earth magnets prior to 2008 they were used for a variety of purposes such as computer hard drives, wind turbine generators, audio speakers, magnet motors in cordless equipment, Mag-Lev trains and many other products.
Such is the strength of economics to impact upon design that as rare earth metals become more expensive ways had to be found to replace permanent magnets with alternative technology.
There are plenty of engineering solutions possible such as AC induction motors, AC converter drives and switched reluctance (SR) systems. AC inverters work well with fans and pumps.
SR motors don’t use carbon brushes, commutators or magnets. Rather the rotor position is detected using a sensor. This tells which stator to energize to make the rotor turn through 360 degrees. SR motors could be used in the automotive industry and in making fridges and other white goods. The technology behind SR motors has been slow to develop because of the comparatively cheap prices of rare earth metals.
Now in May 2012 prices have dropped slightly for rare earth metals. It has come out that speculators were artificially driving up prices while the blame was wrongly attributed to lower Chinese quotas. Here is a clear example of how economics has a direct bearing on engineering and design.









