New Energy Vehicles Are the Main Growth Point of High-Performance NdFeB
NdFeB magnet material is the third-generation rare earth material based on the intermetallic compound Nd2Fe14B, whose main components are rare earth elements iron, neodymium, and boron. Under the appropriate temperature, humidity and no strong external magnetic field, radiation and other factors that affect the magnetic performance, the magnet performance of the NdFeB will not be a large loss, which is conducive to the conversion of electrical signals and the transfer of electrical energy-mechanical energy, so that electronic instruments and communication equipment gradually develop in the direction of miniaturization.
At present, according to the related official regulations, NdFeB permanent magnet material is made by the quick-setting belt throwing method to make permanent magnet motors, magnetic resonance instruments, and advanced audio-visual equipment, with medium, small and micro size, whose sum of Hcj(kOe) and (BH)max(MGOe) is greater than 60, which belong to the high-tech products that are encouraged and supported by the domestic.
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But in fact, manufacturers in the market often do not distinguish between low-end and high-performance NdFeB according to the standard above, instead of the difference in demand for downstream products. Specifically, low-end NdFeB is mainly used in magnetic adsorption, electric bicycles, and luggage buckles, and others, while high-performance NdFeB mainly refers to various models used in the field with high-tech barriers, such as energy-saving motors, automobile motors, and wind power, and etc.
In the low-end NdFeB market, there is disordered competition among a large number of small and medium-sized enterprises. As low-end NdFeB is easy to produce with low technology content, the industry show features of more dispersed production capacity and a high degree of product homogeneity, resulting in oversupply in the market, poor bargaining power of producers, and vicious competition among the small and medium-sized NdFeB producers.
The high-performance NdFeB market has higher entry barriers in terms of technology, capital, talents, and downstream enterprise certification.
New Energy Vehicles Provide Maximum Power
The upstream of the industrial chain of NdFeB permanent magnet materials industry is mainly the mining and smelting of rare earth, the midstream is NdFeB producers, and downstream is both traditional fields such as consumer electronics and basic industry, and emerging applications including new energy, energy conservation and environmental protection.
In many downstream applications, permanent magnets for new energy vehicles have the characteristics of high gross profit and high industrial chain barriers， which are the main growth points of the permanent magnet industry.
High-Performance NdFeB Is Mainly Used in Permanent Magnet Synchronous Motors in Electric Vehicles
In traditional cars, high-performance NdFeB is often used in micromotors and EPS, while in electric vehicles, most motors use inductive asynchronous motors and permanent magnet synchronous motors which has a great contribution to the demand for high-performance NdFeB, where Tesla Model 3 and some domestic electric vehicles use permanent magnet synchronous motors.
The amount of high-performance NdFeB magnets for permanent magnet synchronous motors is about 1.8 kilograms. Considering the consumption of blanks to finished products, the amount of this part reaches 3 kilograms. In addition, the amount of EPS and other parts reaches about 0.4 kilogram, so the amount of pure electric bicycles reaches about 3.4 kilograms and the amount of hybrid bicycle is about 2.2 kilograms. In view of the higher energy conversion efficiency and lower energy consumption of permanent magnet synchronous motors, the permanent magnet synchronous motors are smaller in size and more efficient at the same power. We judge that more permanent magnet synchronous motors will be used in the electric vehicles equipped with a dual-motor structure, which offers room for further improvement in the usage of high-performance NdFeB in electric vehicles.
New Energy Vehicles Provide Development Space for High-Performance NdFeB
The environment of the global new energy vehicle market is generally excellent, where car companies are improving the deployment of new energy vehicles and the model structure. The new energy vehicle market is expected to usher in a strong rebound. Assuming that global sales of electric vehicles will reach 2.69 million units in 2020, a year-on-year growth rate of 22.27%. According to this calculation, the demand for high-performance magnetic materials in the field of electric vehicles will reach about 8,350 tons in 2020, an increase of 22.87% year-on-year. Assuming that the penetration rate of new energy vehicles is increasing year by year, reaching 17% in 2025, the demand for new energy vehicles for high-performance NdFeB will reach more than 50,000 tons, according to the global output of 100 million vehicles whose output of electric vehicles is about 17 million vehicles and the consumption of NdFeB is 3 kilograms, which is equivalent to recreating an existing high-performance NdFeB market.
Zhenghai Magnetic Materials has three core technologies of oxygen-free process theory, TOPS fine crystal technology and THRED rare earth diffusion technology, which has reached the international level. Through more than five years of layout, it has successively registered and established wholly-owned subsidiaries in overseas markets such as Germany, Japan, South Korea, and the United States, and entered the supply chain system of overseas mainstream auto companies. It is expected that the contribution of NdFeB for new energy vehicles to its profit will increase significantly in the next two years. In addition, to match the orders of downstream overseas customers, it will realize a doubled production capacity to reach 15,000 tons of NdFeB after the planned investment in the next 2-3 years.
NdFeB Permanent Magnets