Analyzing the permanent magnet network structure An assessment for selecting essential desicion making criterias when buying sintered NdFeB magnet
Ladda ner
Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Program
Supply chain management (MPSCM), MSc
Publicerad
2023
Författare
Shafaei, Ghazaleh
Gunes, Melissa Dilan
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Electrification is of increasing importance today. Rare earth elements, particularly
those used in magnets for high-tech applications and renewable energy, are essential
for Europe’s economy and green agenda. Today China produces more than
90% of the world’s rare earth magnets. From a European industry perspective, the
significant supply risk for these minerals is caused by their high manufacturing concentration,
rising potential international conflicts, and expanding domestic demand
in China. This situation is mainly driven by an increase in electrical mobility.
The aim of this study is to analyze the permanent magnet value chain and its
connected network of actors and relationships. In addition, the aim is to analyse
and suggest important supplier selection criterions for permanent magnets, from a
buying firm perspective. There is a scarcity of supp chain standards and transparency
for governance, social, and environmental implications in the permanent
magnet value chain. Therefore, the study also covers an analysis of the resiliency in
the permanent magnet value chain.
The theoretical framework of the study builds on network analysis of the resources
and the relationships in the permanent magnet network to understand the dependencies
and the expected change in the value chain dynamics. The micro, meso and
macro levels of the network was a complementary aspect of the study to highlight
the structure of the governmental initiatives, actors and their relationships and activities
in the value chain. The method of the study focused on the downstream
part of the value chain. In total, about 21 distributors, manufacturers and industry
experts were interviewed to understand the network of the value chain of permanent
magnets and get different perspectives on how various stakeholders approach the
market and its development. To get an applicable perspective from a buying firm
perspective, a case company called Alpha that is planning to enter the market was
included in the study.
The absence of diverse rare earth magnets supply chains and the exponential rise
in demand for these high-performance permanent magnets, primarily in the automotive
and renewable energy industries is the reason for the expected supply chain
disruptions. In comparison to their Asian rivals, EU manufacturers have greater difficulty
accessing the resources, and they particularly suffer from speculatively driven
price volatility. The rare earth value chain is crucial to sustainably produce magnets
in larger volumes and should be considered in terms of supply risks, environment, social and economic factors.
This study identified six areas of importance for the buying firm to consider while
entering the permanent magnet market. Firstly, focusing on technological requirements
to consider for the selected permanent magnet in the end application and the
downstream capabilities. Secondly, sustainability criteria from an economic, environmental
and social aspect. Furthermore, the geopolitical factors including intellectual
property and localization analysis. As a result, the expected price mechanism
and the volume and capacity trends in the market was another essential perspective
to analyze. Lastly focusing on the strategic importance of permanent magnets
for the buying firm to determine the level of investments needed when entering the
permanent magnet value chain.
Beskrivning
Ämne/nyckelord
permanent magnet value chain , sustainability , network perspective , supply chain resiliency , supplier selection criterias