Closing the Loop on Rare Earth Magnets
Download the report

Every European electric vehicle, wind turbine, data center and defense system relies on permanent magnets made with Neodymium or other rare earth elements (REE). These magnets are not just components but critical enablers of high-performance motors, generators, and advanced electronics. Their strategic importance for Europe’s wealth and security is immense – they underpin electric mobility, renewable energy, and digital infrastructure. Yet more than 90% of permanent magnets are currently imported from China, leaving Europe dangerously exposed to supply disruptions in the very technologies driving its green and digital transition. For European industry leaders, the question is not if but when and how to build magnet recycling capacity to secure resilience and competitiveness. Building on our previous analysis of recurring global supply chain disruptions, this whitepaper presents actionable solutions to address the critical dependency of Europe for raw material sourcing and processing, with a specific focus on the REE Neodymium. 

We present a detailed case for building supply chain resilience for Neodymium permanent magnets through a circular paradigm. REE magnet recycling offers one of the fastest ways to strengthen supply security and resilience amid limits to domestic mining, diversification, and substitution. This paper outlines the business case for local recycling, urban mining and alternative sourcing options. We introduce the practical case of a concrete, local solution, as a blueprint for a cross-industry and political initiative. By highlighting the tangible economic and strategic potential of local REE magnet recycling, we provide a clear call-to-action for companies and policymakers to invest in a resilient, circular economy for critical raw materials.