The dependence on rare earth magnets poses a strategic risk for the global defense industry
At Bakker Magnetics Engineering, we understand better than anyone that rare earth magnets are a silent but indispensable driver in modern weapons technology. From high-performance gyroscopes to missile guidance systems – these small but powerful components determine the effectiveness of countless military applications.
For industrial engineers, this presents a crucial challenge: how do you ensure robust supply chains in a geopolitically uncertain world? From our technical expertise, we explore the strategic implications, alternatives and innovative solution directions for engineers working in defense and high-tech sectors.
What are Rare Earth Magnets?
Rare earth magnets are permanent magnets made from alloys based on rare earth elements such as:
- Neodymium (NdFeB): The most powerful commercial magnet, ideal for miniaturization
- Samarium-Cobalt (SmCo): Offers higher temperature stability and corrosion resistance, suitable for harsh military environments
Defense Applications:
- Electric motors in drones and missiles
- Active guidance systems in smart munitions
- Precision gyroscopes and sensors in navigation systems
- Magnetic actuators in radar and weapon systems
At Bakker Magnetics, we develop custom magnetic solutions for high-performance applications in the defense sector. Our engineers support OEMs and defense partners in the design, selection, and integration of magnetic components.
Geopolitical dependence and risks
China’s Dominance
China currently controls more than 85% of global rare earth metal production, from mining to refining. This results in:
- Strategic dependency for NATO countries
- Price volatility, such as during China’s export restrictions in 2010
- Supply uncertainty amid geopolitical tensions or trade conflicts
Example: 2010 Export Restrictions
In 2010, China announced restrictions on rare earth metal exports, leading to a fourfold price increase and supply chain disruptions in the high-tech and defense sectors worldwide. Countries such as Japan and the U.S. were forced to build up strategic reserves. At Bakker Magnetics, we proactively analyze these market developments and advise clients on inventory management, material alternatives, and sourcing strategies.
Strategic solutions and alternatives
For industrial engineers, this challenge creates room for innovation and strategic design. At Bakker Magnetics, we actively pursue two solution paths.
First, we focus on the development and optimization of alternative materials. While ferrite magnets and alnico alloys are less powerful than rare earth variants, they offer advantages in cost, availability, and temperature stability. We also explore the application of nanostructured composites, which show promise as viable rare-earth-free substitutes. In collaboration with European research institutions, we invest in fundamental materials research and practical prototyping.
Second, we aim to secure supply through new refining capacities outside of China. For instance, we support initiatives by companies like MP Materials in the U.S., which is restarting mining and processing at Mountain Pass, and Lynas in Australia, which is building refineries in Malaysia and on home soil. At the same time, we closely monitor the implementation of European legislation such as the Critical Raw Materials Act, which aims to strengthen production and recycling within the EU to increase strategic autonomy.
Opportunities for industrial engineers
Engineers working in the defense and high-tech sectors will find opportunities across several key areas. Based on our practical experience at Bakker Magnetics, we identify three main focus points:
R&D and materials science
- Research into composites and nanomaterials
- Development of temperature-stable and corrosion-resistant magnets
Product development and system integration
- Redesign of drive systems using alternative magnets
- Integration of modular magnets for ease of maintenance
Risk management and supply chain engineering
- Supplier diversification through nearshoring
- Design of flexible, resilient supply networks
- Analysis of geopolitical risks in materials planning
Our engineering teams advise clients to consider material choices early in the design cycle, with a focus on performance, availability, and cost-efficiency.
Strategic design starts with materials
Dependence on rare earth magnets is not just a material issue, but a strategic challenge for the entire defense industry. Industrial engineers play a key role in finding alternatives, designing robust systems, and building resilient supply chains. At Bakker Magnetics, we believe that smart design, material expertise, and collaboration with reliable partners are the keys to future-proof defense technology.
