Rare Earths for the Transformation – - Resilient Supply Chains for Climate Neutrality in Germany 2045

2024 13 www.oeko.de Annual demand of REE worldwide REE demand worldwide: ➢ IEA scenarios in 2021 ➢ Demand of LREE doubled ➢ Demand of HREE quadrupled ➢ No peak till 2040 Rare Earths for the Transformation│Dr. [...] 2024 14 www.oeko.de Interim conclusions ➢ Ambitious goals for wind power and transport sector ➢ Offshore: manly synchronous generator with very high REE demand ➢ In BEV motors: Dominance of motors with magnets only slightly decreases ➢ German demand for REE drops after 2035 but stays high ➢ Worldwide demand for REE until 2040: ➢ Demand of LREE doubled ➢ Demand of HREE quadrupled Rare Earths for th. [...] 2024 17 www.oeko.de Three main pillars of dependency reduction ➢ Diversification of supplier countries ➢ Expansion of European supply chain ➢ Recycling ➢ Material efficiency & substitution not much potential Rare Earths for the Transformation│Dr. [...] 2024 22 www.oeko.de Recycling Advantages: Annual recycling potential and demand of REE ➢ because of electric vehicles based on KNDE2045 ➢ Growing potential for end-of-live material ➢ High concentration of REE (30%) Demand ➢ Disadvantages: ➢ Only medium- & long-term effects (after 2030), but political guidelines necessary Recycling potential now ➢ Still research necessary (collection, deconstructio. [...] 2024 23 www.oeko.de Conclusions ➢ Wind power and BEV need an enormous amount of permanent magnets ➢ German demand for REE drops after 2035 but stays high ➢ Global demand for REE will double at least by 2040 ➢ China strongly dominates the market for permanent magnets ➢ Actions to reduce dependencies: ➢ Diversification of supplier countries with partnerships on eye level ➢ Expansion of European supp.