Recovering and remanufacturing neodymium from wind turbines.
New analysis from the NEPC reveals valuable critical material stocks in UK wind turbines that could unlock future industrial resilience, cost savings and environmental improvements.
Key findings of the report
This report is a technical analysis of the permanent magnet material stocks available within the UK. Wind turbines contain large amounts of neodymium magnets in their generators. Neodymium is a valuable and important critical material for the UK’s sustainable energy transition, being used in electric motors of all kinds.
The report presents four gaps in existing policy and practises which could present barriers to grasping the opportunities from a UK wind turbine circular economy.
A domestic circular economy for permanent magnets could support our wind power goals, electricity system, as well as the broader UK manufacturing industry – including for EVs, low carbon shipping and aerospace, and even for heat pump systems.
Why is it valuable to have a domestic source of neodymium?
Neodymium is a critical material which is used in the magnets for wind turbines. The UK has been an early mover in the deployment of wind power, having deployed 30 GW of combined onshore and offshore wind as of 2025 and forecast to reach around 40 GW of offshore wind by 2030. Consequently, there is a large amount of neodymium in existing deployed turbines but also in newly commissioned ones.
Demand for neodymium is projected to increase faster than supply, creating the potential for a shortage which could impact UK industries. Current sourcing of neodymium magnets relies on mining and processing from overseas, much of which is geographically concentrated in China. Extracting and processing raw neodymium is complex and highly damaging to the environment. Finding a secondary source of neodymium therefore reduces risk of a shortage and reduces the environmental harm from expansion of neodymium mining. With the increased demand for electric vehicles (another use of neodymium) and large-scale deployment of more wind turbines, neodymium is currently crucial to the UK’s decarbonisation goals.
What opportunities exist in the UK economy?
The National Engineering Policy Centre warns that the UK must take action if we are to secure this strategic advantage and ensure that neodymium is returned to the UK economy.
- Developing the UK’s circular economy of neodymium magnets would require actions such as:
- New wind turbines to be designed for magnets inside to be recovered safely and easily after a turbine is recycled.
Infrastructure for decommissioning wind turbines to be ready. - A trade policy that keeps neodymium magnets within the UK and clear standards and regulation to ensure that remanufactured neodymium is able to be safely used for manufacturing and clean energy industries.
To find out more about how establishing a domestic circular economy for neodymium from wind turbines could bring economic and sustainability benefits to the UK, read the full report.
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