The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
A quick probably completely wrong math on this is UK has 11,500 wind turbines and is expected to grow in fact needs to triple!... to hit targets
Each turbine I believe averages 2 tonnes of REE in a magnet with some having more than one magnet
but anyways looking at a staggering 23000 tonnes of recycable REE magnets.... UK only so once HyproMag master this it can become part of the pilot exported to every part of the globe... blue day? probably not lol
P2
'"This project is set to overcome the obstacles associated with recycling rare earth magnets from wind turbines, effectively opening up a new domestic source of these magnets, which is a significant achievement in itself."
Although wind power has been utilised through the ages, the first great wave of large-scale wind energy occurred in the 1990s. Consequently, many early-generation wind farms are approaching the end of their typical serviceable lifetime, estimated at around 20 to 25 years.
Re-Rewind is leading the way in the renewable energy sector during this crucial time. Through its commitment to pioneering circular supply chain solutions, the partnership aims to make sure that wind energy remains viable in the UK for the long run and helps to create a more sustainable future for future generations.'
P1
'As the first generation of the UK's wind turbines come to the end of their serviceable life, "Re-Rewind" aims to pioneer a sustainable, circular economy to recover and secure essential resources needed for the next generation of wind turbines.
Re-Rewind, an innovative partnership between global leader in sustainable materials, EMR, world experts in recycling rare earth magnetic materials, HyProMag, the Offshore Renewable Energy (ORE) Catapult, Magnomatics, and University of Birmingham, part funded by Innovate UK, has embarked on a groundbreaking mission to establish the UK's first circular supply chain for the rare earth magnets used in wind turbines.
This pioneering collaboration seeks to play a pivotal role in securing the future of sustainable wind energy by recycling critical materials and reducing the reliance on our Earth's depleting resources.
From high-quality construction steel, copper and other metals to a range of rare earth elements (such as praseodymium and dysprosium), modern wind turbines contain a wealth of materials which, if they cannot be sourced from recycled channels, must be mined, leading to increased environmental impacts and resource scarcity.
In particular, the wind turbine sector uses very large quantities of a rare earth magnet that's an alloy of neodymium, iron and boron (NdFeB). These NdFeB magnets are critical components used in PMSGs (Permanent Magnet Synchronous Generator) in larger onshore and offshore wind turbines. With the UK's rapid transition towards net-zero emissions, it's predicted that in 2040 there will be a 240,000 tonne shortfall of rare earth magnets, which will slow down our progress dramatically unless an alternative source is established.
With no consistent route to recycle these materials, due to safety, economy and technical challenges in extracting and recycling the magnets, the "Re-Rewind" project is set to combat this impending shortage, bolster the UK's rare earth material security, foster the creation of green jobs, and alleviate the strain on Earth's diminishing resources.
EMR's Energy Infrastructure Lead, Dr Charlotte Stamper said:
"Our collaborative effort represents a significant step forward in securing the sustainability of wind energy. By establishing a circular supply chain for rare earth magnets, we not only reduce the environmental impact of wind turbine production, but we also lay the foundation for a greener, more self-sustaining future."
HyProMag Operations General Manager, Nick Mann said:
"We are thrilled about this groundbreaking project and the chance to enhance the UK's rare earth magnet recycling supply chain. Thanks to the backing of Innovate UK and our outstanding consortium of project collaborators, we see immense potential. Each company's unique expertise comes into play to tackle the complex task of extracting magnets from retired wind turbines.
'However, when we drill down on the nature of China’s reserves in detail – by region and type – and contrast those reserves with projected NdPr oxide demand growth, we see that China is on track to deplete most of its known reserves base within the next three decades.
Consequently, it is Adamas’ view that China has no desire or interest in monopolizing global mine supply of magnet rare earth materials into the foreseeable future.
Conversely, we see China actively working to secure access to foreign sources of rare earth feedstock – in Africa, Asia, South America and elsewhere – to preserve resources at home while sustaining its dominance downstream, from magnet to motor to finished product.
As such – Adamas expects rare earth concentrate and oxide prices to sustain healthy levels on average over the medium- to long-term, encouraging foreign production for export to China, while prices of metals, alloys, magnets and other downstream products remain marginal in an attempt to discourage foreign downstream production outside the nation by design.'
https://www.adamasintel.com/adamas-takes-stage-at-repm-2023/
'Another innovative project to successfully secure investment is a collaboration between EMR, HyProMag Ltd, Offshore Renewable Energy Catapult, Magnomatics and The University of Birmingham, which aims to sustainably decommission and recycle offshore wind turbines.
The first generation of wind turbines are now nearing the end of their life, and decommissioning them sustainably presents a multi-faceted challenge. The project aims to be part of a low-carbon decommissioning programme that allows for the retrieval of the Rare Earth Elements used in their construction.
Nick Mann, Operations General Manager of HyProMag said: “We are very excited about this innovative project and the opportunity to further develop the UK supply chain for rare earth magnet recycling with the support of Innovate UK and an excellent consortium of project partners. This project will address the hurdles for recycling of permanent magnets from wind turbines, effectively unlocking a new domestic source of rare earths.”
'The project aims to sustainably decommission and recycle offshore wind turbines.
The first generation of wind turbines are now nearing the end of their life, and decommissioning them sustainably presents a multifaceted challenge. The project aims to be part of a low-carbon decommissioning programme that allows for the retrieval of the rare earth elements used in their construction.'
'Winners in strand two for later stage research and development (R&D)
European Metal Recycling Ltd, Hypromag Ltd, Offshore Renewable Energy Catapult, Magnomatics and University of Birmingham
Decommisioning and recycling of offshore wind turbines.'
https://www.ukri.org/news/projects-secure-6-6m-to-strengthen-uk-supply-of-critical-materials/
Https://www.energy.gov/articles/biden-harris-administration-announces-150-million-strengthen-domestic-critical-material
'The U.S. is completely reliant on foreign sources for 12 of these minerals and more than 50% dependent on foreign sources for more than 30 of them. The funding opportunity announcement (FOA) released today will help to build a secure, sustainable domestic supply of critical minerals from a broad range of sources across the United States, including recycled materials, mine waste, industrial waste, and ore deposits. Specifically, the FOA will support bench- and pilot-scale research, development, and demonstration projects for:
Technologies or process improvements that develop new supplies of critical minerals and materials here at home;
Value-added products created from other materials that are part of the waste streams from which critical minerals and materials are extracted;
New, next-generation technologies to be used for lower cost, environmentally responsible extraction, production, separation, and processing of critical minerals and materials'
Maybe Cotec can extract a little of that new $150 million on offer :)
Lindian currying some favour there :)
https://www.youtube.com/watch?v=93a94bNwBDE
Yes, two main keys to everything going skywards here that luckily don't rely on each other...
1. An MDA that is financing friendly,that's the biggy as far as AIM is concerned
2. The Birmingham plant up and running making saleable recycled REEs and manufacturing magnets with buyers... Really that could end up being far more valuable than the mining and a lot quicker!
There are lots of other potential positives too... Mkango's Malawi licences have a lot of potential value, it is anecdotal from someone in the country but if true that Mkango is sat on a Rutile resource even bigger than Soverigns massive resource next door then the future for that is exciting too... Then Uranium and we can all see how that resource is playing out now
So the potential is massive but those keys need turning before the tin rattles and Cotec eat up even more of Hypromag
Should add I think the financing for Pulawy ought to be a whole lot easier to attract now with the likelihood of the EU CRMA being law by March 2024... As where are all the other REE refineries in the EU???
'On Thursday, lawmakers also voted to increase the EU’s goal for domestic refining and processing capacity of critical raw materials, raising it from 40% to 50%. This is in line with the demands of EU countries, which supported the same objective during a vote on 30 June.'
I was hoping there might have been some news from the Birmingham plant up and running this past week as that would have been ideal timing with the very exciting and well-attended REE event and Cotec over presenting at the attached Innovate event but obviously, the plant is not quite up and running ...possibly missing one or more components although we have seen pieces of the plant arriving so all is good and when you look at the pics in the presentation it is no shed project lol it's rather impressive!
Meanwhile, the Malawian Minister of Mining is all over the place first Australia then South Africa, and more conferences/events throughout the year.... She is really getting around pushing Malawi as a place to do mining business... We should remember although Malawi has mining already it does not have a Mining Industry and this is what all stakeholders are trying to build which will be feeding into the MDA delay.....
My understanding is that MDAs could be signed in a snap going off the Lotus presentation as they say they could already sign a poor MDA and make it work so long as Uranium prices are high but they would not be in shareholder interests so negotiations for better...Mkango's no doubt is all about an MDA which means the partner/investor is able to say yes to it and here is the financing
I like Beer :)
'Nicola Beer MEP (FDP, DE), Vice-President of the European Parliament and Rapporteur on the Critical Raw Materials Act, states: “The Industry Committee today laid the foundations for stable European sovereignty and competitiveness. The agreed report provides a clear blueprint for European security of supply, with a research and innovation boost offensive along the entire value chain. Instead of ideology-driven subsidy avalanches, it relies on fast and simple approval processes and the reduction of red tape.
"In response to geopolitical upheavals, it creates the preconditions for targeted economic incentives to private investors in the context of production and recycling in Europe. At the same time, it builds on the expansion of strategic partnerships with third countries at eye level. The foundation for Europe's course towards open, economic and geopolitical sovereignty has been laid.
"Now it is time to build solid pillars for Europe's sovereignty in Plenary and in the upcoming negotiations with the Council and the Commission.”
The endorsed report places circularity within the single market, innovation and trade flows between reliable partners at the forefront of the EU strategy. In this regard, Renew Europe advocates for addressing supply risks by strengthening and diversifying value chains with strategic trade alliances based on mutual benefits.
The rapporteur also calls for investment in innovation and research to boost the development of sustainable alternative materials and production methods on European soil, and furthermore to investigate the possible recovery of CRM from extractive waste.
Moreover, as staunch supporter of competitiveness, Nicola Beer and her Renew Europe colleagues successfully pushed for a relief of the bureaucratic burden on companies and SMEs by reduced reporting, easier access to finance and shorter approval procedures for strategic critical raw materials projects.
Finally, Member States and European institutions must put in place the right incentives to ensure that enough assets, especially private ones, are mobilised for massive investments needed in the sector.'
For the EU Critical make Mkango one hot potato Materials Act:
'Next steps
Assuming the CRMA is passed in the Parliament’s plenary session on 14 September 2023, trilogue negotiations will start between the Council and Commission in the hope that a provisional agreement on the file can be reached by the end of the year. The agreement would then be subject to votes on its adoption before becoming law. Based on the assumption that the file would be accepted by lawmakers, we expect it to be published in the Official Journal of the EU by March 2024, where it would enter into force 20 days later. It would be binding in its entirety and directly applicable in all EU Member States. '
https://riskandcompliance.freshfields.com/post/102in5d/the-european-critical-raw-materials-act-a-quick-summary-on-what-it-does-and-when
And seeing as the Council has already increased the processing and recycling targets from 40% to 50% and from 15% to 20% respectively
And the Parliament looks keen to vote it in .....
'Parliament position
The Parliament is preparing its position (report), the work for which is being led by liberal German MEP Nicola Beer on behalf of the Parliament’s Industry, Research and Energy Committee (ITRE). Ms Beer presented her draft report in May, and this was subsequently adopted by lawmakers in the ITRE Committee on 7 September 2023 (with 53 votes to 1, and with 5 abstentions). Her report includes: amendments focusing on: fostering SMEs participation in critical raw materials supply chains; further streamlining permitting procedures; avoiding market distortion in the process of setting and maintaining of EU stocks of critical raw materials in cooperation with private economic operators; updating the critical raw materials list more frequently; and strengthening economic incentives for companies to invest and produce in Europe.'
Has to be opening even more doors!