Permanent magnets, especially those containing rare earth elements (REE), are integral to motors, turbines, and robotics, but their production is highly carbon-intensive. This guide presents findings from life cycle assessments (LCA) that quantify emissions across the supply chain—from rare earth extraction to magnet production. It highlights how coal-based electricity in regions like China significantly amplifies emissions and identifies opportunities to reduce these impacts through cleaner energy sources and efficiency improvements.

Supply risks are a growing concern due to the geographic concentration of rare earth mining and processing in China and Myanmar. The guide details how this reliance creates ESG vulnerabilities, including geopolitical risk, environmental degradation, and social impacts. It also outlines emerging supplier regions and midstream diversification efforts as potential mitigations.

Recycling of rare earth bearing magnets remains limited but is increasingly viable due to process innovations like hydrogen decrepitation and magnetic separation. The guide explores how OEMs and recycling firms are pioneering recovery from hard disk drives, motors, and turbines. These circular approaches support EU recycling targets and reduce reliance on critical virgin materials.

New policies, including the EU Critical Raw Materials Act, Digital Product Passport, and U.S. Inflation Reduction Act—require companies to prove traceability, recycled content, and sustainable sourcing for materials like Nd, Pr, Dy, Fe and B used in magnet products. The guide outlines how LCA and supply chain mapping can prepare businesses to meet these requirements and turn compliance into a competitive advantage.

The guide assesses opportunities to substitute NdFeB in certain applications with ferrite or SmCo magnets and improve magnet design using techniques like Halbach arrays. These alternatives reduce critical raw material use and improve recyclability, offering a pathway to resilience amid tightening resource regulations and market pressures.