The German wind industry has proposed that Europe set a target of sourcing 30% of all permanent magnets from suppliers outside China by 2030, with the aim of increasing this share to 50% by 2035.
Permanent magnets containing rare earth elements are vital components for wind turbine generators. Currently, more than 90% of these magnets are produced in China, creating a dependence that “affects the entire value chain,” according to a roadmap developed jointly by the German Federal Ministry for Economic Affairs and Energy (BMWE), the German Wind Energy Association (BWE), the German Offshore Wind Energy Association (BWO), the VDMA, and the non-profit Offshore Wind Energy Foundation.
The roadmap proposes several milestones for turbine manufacturers. The first milestone is to “identify potential alternative suppliers of permanent magnets for wind turbines and establish initial contacts to explore collaboration opportunities,” followed by signing corresponding memorandums of understanding by mid-2025.
Offtake agreements could then be concluded by the end of 2026, with projects expected to be operational as early as 2029.
The Federal Ministry for Economic Affairs and Energy has expressed its support for these actions, including supporting applications for promising projects under the EU Innovation Fund and simplifying bureaucratic procedures. “Furthermore, the ministry will act as a gateway for foreign travel and provide support in attracting potential suppliers of permanent magnets and rare earths in countries outside Europe,” according to a BMWE statement.
“The joint commitment of industry, associations, and the BMWE to this roadmap is a strong signal toward a new industrial policy that seriously addresses the new geopolitical risks. However, we will need to be patient,” said Karina Würtz, Managing Director of the Offshore Wind Energy Foundation.