3 February 2026

Strategic mineral substitution: sodium-ion batteries and rare-earth-free magnets

Key insights from this briefing

Why are sodium-ion batteries emerging as an alternative to lithium-ion batteries?

Sodium-ion chemistry uses abundant, lower-cost raw materials and is increasingly suited to stationary storage and entry-level mobility, where cost stability matters more than maximum energy density. Lithium-rich chemistries still retain an advantage in long-range vehicles, but sodium-ion offers manufacturers a hedge against lithium price volatility.

Can rare-earth-free magnets reduce reliance on neodymium and praseodymium?

Iron nitride and cerium-substituted magnets are being developed as alternatives for selected motors and power tools. NdFeB remains the benchmark for high efficiency, but rare-earth-lite and rare-earth-free designs could reduce exposure to concentrated processing supply chains as prices and supply risks rise.

Excerpt from this briefing's Industry Insight

Mineral substitution is increasingly shaping strategic supply chains. Sodium-ion batteries offer a lower-cost alternative for stationary storage and some entry-level mobility applications, while LFP and LMFP chemistries reduce exposure to cobalt and high-nickel inputs. Permanent magnets face a similar engineering response: high NdPr prices are encouraging development of iron-nitride, cerium-substituted and other rare-earth-light designs. These technologies do not eliminate demand for incumbent minerals, but they create fallback options that can reduce vulnerability when concentrated supply chains become too expensive or politically risky.

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