REVITALISING A RARE EARTH 2017 - 2037 HUNTERNET FUTURE LEADERS - HUNTERNET FUTURE LEADERS PROGRAM 2017 TEAM SUGARLOAF
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Revitalising A Rare Earth
2017 - 2037
HunterNet Future Leaders
HunterNet Future Leaders Program 2017
Team Sugarloaf
Executive Summary........................................................ 3
Introduction...................................................................... 4
The World in 2037........................................................... 6
Newcastle & The Hunter in 2037 .................................... 7
Rare Earth Elements ...................................................... 8
Introducing RARE 5.0 ................................................... 10
Planning Context .......................................................... 12
Timeline of RARE 5.0 ................................................... 13
Key Collaborations - Partners & Customers ................. 14
Environmental Considerations ..................................... 16
Research & Interllectual Property ................................. 18
Operations .................................................................... 19
RARE 5.0 Business Model............................................ 22
Conclusion..................................................................... 26
References.................................................................... 27
Appendices.................................................................... 28
2
Executive Summary
We have witnessed the world change significantly since 2017, the world population has reached 8.9 billion and
60% of us now live in cities. We are in the midst of the battery revolution, where living off the grid is more afford-
able and environmentally friendly than ever before. Advancements in robotics and artificial intelligence see man
and machine working together as one. Addressing waste and the environment is crucial to ensure our world is
sustainable. We must understand and pursue clean technology at all levels, recognise increasing demand on
energy, increasing consumption of technology and the increasing importance of circular economies.
The world relies on technology, and technology relies on rare earth elements (REE), commonly referred to as
‘the seeds of technology’. REE are key in clean technologies, computing, automotive, consumer electronics,
medical, aerospace, robotics and military fields. Despite a global transition towards a circular economy, consum-
erism still reigns supreme and continual innovation and reliance on technology continues to put demand on our
natural resources.
RARE 5.0 formed to create sustainable alternatives to mining rare earth elements, while allowing technology to
continuously evolve. Based in Newcastle, Australia, RARE 5.0 is the global leader in the research, innovation,
manufacture and export of synthetic REE. Our revolutionary process of manufacturing REE repurposes waste,
eliminating environmentally damaging mining processes.
The five founding members of RARE 5.0 met through participation in the 2017 HunterNet Future Leaders Pro-
gram and realised a shared passion for both Newcastle and global sustainability. Through research and devel-
opment partnerships with CSIRO, NIER and the NUW Alliance, and further collaborations with the government,
educational institutions and industry leaders, RARE 5.0’s mission became a reality.
Grants from the Australian Manufacturing Growth Centre and government agencies boosted commercialisation
of the product leading to a world-class manufacturing facility to be built in Newcastle. Production commenced
in 2030, however RARE 5.0 will not stop here, with diversification constantly on the mind, we continuously seek
opportunities to innovate our product.
In collaboration with our partners and leveraging the historic strengths of our city (infrastructure, proximity to
ports, advanced manufacturing skillset, education and research capabilities), RARE 5.0 have been pivotal in
redefining industry in Newcastle and the Hunter Region, Australia and globally.
Newcastle and the Hunter is leading the way in innovative waste to resources manufacturing and is defining the
ultimate realisation of a global circular economy.
3
Introduction
In 2017, RARE 5.0 begun after recognising there would be unprecedented global demand for Rare Earth Ele-
ments (REE) paired with a monopolised and diminishing supply. In addition to supply crunch, the extraction of
these elements from the earth’s crust have significant environmental impacts. Today, 20 years later, RARE 5.0
produce the largest market share of synthetic REE in the global market, placing us as the industry benchmark in
an expanding global waste to resources export market. In collaboration with our partners, we have been pivotal in
redefining industry in Newcastle, the Hunter Region, Australia and globally.
Waste materials are created by consumer demand. Our consumer society depends more and more on smart
technology. Smart technology depends on the seventeen chemical elements in the periodic table grouped as
REE. Our passion for sustainable development, the environment and waste eradication led us to collaborate with
government, industry and education partners to give new life to waste materials. RARE 5.0 are a proud Newcas-
tle company, who leverages our research, innovation and manufacturing capabilities to produce high quality syn-
thetic REE that offer a superior alternative to mining of these resources without compromising the development of
smart technology.
We cannot accurately predict the future; we know the Australian economy and our way of life will be
subject to waves of change that are reshaping the world we live in. RARE 5.0 is committed to ongoing
improvement and diversification of our product range to continue to meet demand.
4
5
The World in 2037
We have witnessed the world change significantly. Everything off The Grid, Portable
The world population is now 8.9 billion, world sales of
As the cost of electricity increases we are seeing
electric cars has reached 18 million. Over 60% of the
innovation in on-site energy sources that have
world’s population now live in cities, that are charged
changed the economics of global power supply.
by batteries, our public transport, our homes and per-
On-site generation systems creating power at the
sonal vehicles, even air travel rely on strong, reliable
point of consumption, using energy sources such as
batteries.
solar, wind and geothermal, was a short-term solu-
tion. The global economy is in the mist of the battery
Population Growth
revolution; with living off the grid making living more
environmentally friendly, easier and more affordable.
Labour and Robotics
Globally robots are replacing the jobs of humans;
robots are faster, safer, more consistent, smarter
and cheaper. As advances in artificial intelligence
accelerate, robots will spread into all corners of the
8.9b labour market. Human value will be set by the cost of
equivalent machine intelligence. Humanity will need
China Dealing With Inflated Wages to rely on creativity and innovation for survival in an
China has been forced to deal with the inflation of its ever-growing automated society. The ideal future will
minimum wage surpassing the highest level to date. see robots replace manual labour-intensive work and
This has impacted the Chinese economy and it is create new opportunities and new skilled work for
overheating on a grand scale. This has opened up humans.
China as an export market.
Global Waste Problems
India Filling the Gap of Cheap, Waste amount is largely determined by two factors.
Low Quality Production First the population and second its consumption
India has overtaken China with a population of 1.6 patterns which are controlled by the evolution of gross
billion to leave China in second place with 1.3 billion domestic product per capita. Every year we dump
people. China’s production industry has decreased, a massive 2.12 billion tons of waste. This is only set
and made way for India’s industry. The quantity of to increase. The global cost of dealing with all the
cheap, low quality products have increased which has waste is on the rise, and is estimated at $425 billion in
had a significantly adverse effect on the environment. 2037, with the sharpest cost increases in developing
countries.
Opportunities in Global Export
Markets
China is shifting its focus to building domestic
consumption, by exploiting local or State-owned
resources in other countries, and India is growing
in economic importance on the global stage. This
economic shift provides an opportunity for Australia to
build new export markets, trade relations and cultural
ties.
6
Newcastle & The Hunter in 2037
Newcastle and the Hunter Region have overcome Newcastle is home to two nationally significant gate-
adversity from downturns to disasters, yet has the ways, Newcastle Airport and the Port of Newcastle.
tenacity and resilience to reinvigorate, reinvent, and These international assets have seen enormous
collaborate to grow stronger. Newcastle is the second opportunities to enhance connectivity of the Hunter to
largest city in New South Wales and the sixth largest in the Asia-Pacific region and beyond. Newcastle Airport
Australia. is the newest global Space Port, perfectly located
along the east coast of Australia. The Port site has
BHP’s closure of its Newcastle steelmaking plant rapidly expanded as a key waste to resources inno-
vation centre. During expansion of the Port, news that
in 1999 sparked the city’s reinvention, forging
the Port Botany container terminal was predicted to
a resilient community, with a renewed focus on reach capacity by 2035, meant Newcastle was able
innovation to create new industries, ventures and to capitalise on this opportunity and establish a global
jobs – and cultivate a new image as a modern container handling facility in 2030.
leading city. Manufacturing in the region is highly capable and effi-
cient. Manufacturing is the third largest employer in the
In 2017, at the inception of RARE 5.0, the city of Hunter region, employing 9.9 percent of the regions
Newcastle’s was transforming from industrial heartland workforce. Coal exports had traditionally supported in-
to thriving, connected international city at a gathering dustry growth, however even with record coal exports,
pace. Newcastle is the economic capital of the Hunter, the Hunter recognised the need to diversify. Our inno-
and Australia’s largest regional economy. The Hunter vators are finding a place for their talents in high-value
drove 28 percent of regional NSW’s total economic jobs such as clean technologies, aerospace, medical
output and was the largest regional contributor to the technology and advanced manufacturing.
State’s gross domestic product. Newcastle has an in-
HunterNet is recognised as Australia’s premier organi-
ternational profile as a major port city, and gateway to
sation for industry collaboration and innovation, bring-
the world for the Hunter’s resources. The Hunter was,
ing together 2000 companies from the mining, resourc-
and still is, known for our skilled workforce, high-stan-
es, infrastructure and related research sectors in the
dards of research and the business environment is
Hunter Region. HunterNet is an enabler for collabora-
typified by cross-company collaboration and network-
tion, providing pathways to government, major indus-
ing.
try, shared knowledge and resources, and funding
Today, Newcastle has exceeded anticipated population opportunities. The HunterNet model has contributed to
growth, growing to 891,000 persons, a 10% increase growth regionally, nationally and globally.
on original estimates. Newcastle leads the way in
The coming decades will continue to bring significant
waste to resources manufacturing, resulting in a 20%
economic, geopolitical, environmental and social chal-
increase in job creation from original estimates.
lenges. Overcoming these challenges will not be easy,
however Newcastle and the Hunter Region have prov-
en they will play a leading role. By galvanising industry,
the research sector, government and the community
around frontier pushing projects, the Hunter Region
will develop solutions that leave a lasting and trans-
formative impact on economic growth in Australia and
globally.
7
Rare Earth Elements
What Are They and Why Are They Important?
What is a Rare Earth Element (REE)?
REE are a group of 17 chemical elements that occur together in the periodic table (see image). Of these, 15 are
from the lanthanide group of elements. Yttrium and scandium, while not part of the lanthanide group, are also
considered REE because they share similar chemical properties.
What Makes REE Rare?
Despite their name, many of the REE occur commonly in the earth’s crust. However, the forms in which they
occur in the earth are often not concentrated enough to be economically viable to recover. The scarcity of these
minerals led to the term rare earths. Once they are extracted, rare earths require significant processing before
they can be put onto the market.
The Impacts of Mining REE
The mining of REE has a devastating impact on the environment, alongside REE’s pulled from the earth is urani-
um and thorium which creates nuclear waste as a by-product of mining REE’s.
Why Are REE Important?
Acknowledged as the ‘seeds of technology’, REE play a key role in our daily lives because of their broad appli-
cation in the computing, automotive, consumer electronics, medical, lighting, aerospace, robotics and military
fields.
Also known as the ‘green elements’, REE are essential to many clean technologies such as electric cars, solar
panels, and wind turbines that play an increasingly important role replacing fossil fuels as an energy source.
8
How Are REE Used?
REE’s enable and facilitate magnetic, optical and electronic applications in key growth markets mentioned
below, and are expected to contribute to the rapid rise in demand of REE’s.
Due to historical supply concerns, electric vehicle manufacturers tried moving away from REE to more readily
available alternatives. These vehicles could not meet the quality, power, or efficiency that REE driven motors
had achieved, and the most prominent manufacturers of ‘green’ vehicles adopted REE-based batteries and
motors.
Examples of REE Applications
• Electric car parts, including batteries and electric motors
• Phones, laptops and other smart devices
• Wind turbine magnets for the production of clean energy
• Home entertainment systems - TV and computer monitors
• Military applications - including precision guided munitions, missiles and smart bombs
• Medical imaging equipment including MRI scanners
Demand for REE
As the world becomes more populous, urbanised and prosperous paired with an increased awareness and
regulation of environmental impacts, the demand for sustainable energy rises. Despite the global transition to-
wards clean energy, consumerism reigns supreme and continual innovation and improvement with technology
drives an increased demand for constituent resources required for production.
By 2017, the world market for REE was already seeing a supply to demand imbalance, combined with an
inelastic supply market that is unable to respond to steady increases in demand. The REE price spike of 2010-
2011 driven by restriction on Chinese exports prompted many projects to explore additional mining opportu-
nities, ultimately the low concentrations of REE’s found in typical deposits rendered most new projects eco-
nomically unviable. The lack of new mining production resulted in only small increases to world supply during
the period of 2017-2030 with associated supply shortages and escalating prices. During this same period, the
global movement towards clean energy created a surge in demand for REE’s.
9
Introducing RARE 5.0
Our Why Our Values
We love what we do because of why we do it
We Are Green Collar
We: Continuously creating sustainable solutions to glob-
al business needs while improving the quality of the
• seek opportunities to provide solutions to global
needs environment.
• strive for sustainable and environmentally friendly We Care About People
options
Respectful and mutually beneficial relationships with
• aid in global waste eradication through means of collaboration partners, suppliers, purchasers, employ-
repurposing and industrial upcycling
ees and the global community.
• acknowledge the cooperation between man and
machine We Represent Newcastle
• recognise Newcastle and the Hunter as a resilient Acknowledging our industrial past to build the future
economy with a highly skilled workforce we desire through first class research, innovation and
advanced manufacturing.
• appreciate our Novocastrian past as building
blocks for our future
• partner with and support local businesses in the
Newcastle and Hunter
• thrive on collaborative innovation, first-class
research, engineering design and advanced
manufacturing
• pursue transparency, customisation and quality in
the products and services that we provide
• respect partnerships
• don’t compromise, we are win/win
Our Mission: To create sustainable and environmentally
friendly alternatives to mining rare earth elements that will
allow technology to continuously evolve.
Our Vision: Based in Newcastle, Australia, RARE 5.0 is
the global leader in the research, development and export
of high quality synthetic solutions that contribute towards a
circular economy.
10Our How Our What
At RARE 5.0, our team commenced with the five RARE 5.0 manufacture rare earth elements
through a revolutionary process that repurposes
founding members meeting through the HunterNet
waste materials and eliminates environmentally
2017 Future Leaders Program, all of whom shared
damaging mining processes.
a passion for Newcastle, leadership and sustainabil-
ity. Through discussion of how we could achieve our At RARE 5.0, our what is leading transformational
why, the initial concept of producing synthetic REE in research, production and global distribution of REE
a sustainable and environmentally manner which in that provides sustainable and environmentally friendly
turn would allow technology to continue to evolve and alternatives to mining. RARE 5.0 manufacture REE
address global waste problems was shaped. Whilst through a revolutionary process that repurposes waste
we had an innovative vision, we did not necessarily materials to produce synthetic REE with superior prop-
possess the full skillset to deliver this on our own. Over erties to naturally extracted materials. Our product is
the past 20 years, RARE 5.0 collaborated with industry created through repurposing both general and e-waste
and environmental leaders, government, research and with the objective of aiding the movement towards
education institutions, suppliers and consumers to cre- a regenerative circular economy. RARE 5.0 remain
ate and distribute a high-quality solution as the world a proudly Newcastle based company, with ongoing
transitions to a clean energy high-tech future. research being undertaken in partnership with NIER
and NUW Alliance and all pilots and production occur-
ring at the RARE 5.0 Mayfield site. RARE 5.0 leverage
Newcastle’s natural advantages to maintain competi-
tive production of high value resources that contribute
significantly to Newcastle’s standing as a global export
leader.
Our Brand Explained - RARE 5.0
Revitalisation – (def.) to give new life, energy, activity, or success to something
5.0 = 5 x founding members & Industry 5.0 - Transformation of the modern manufacturing process to enable
man and machine to work hand-in-hand, pairing the unique, cognitive skills of workers and precise, technical
skills of robots to inject an innovative culture into the workforce.
11Planning Context
At inception in 2017, key sectors of regional Australia was moving into a defining transitional period. RARE 5.0
were keen to lead the way in the waste to resource manufacturing sector but had to first understand the strategic
frameworks that would influence our success and support our goals.
2030 Strategic Plan for Innovation, Science and Research:
A strategic plan for innovation, science and research systems.
This Plan identified investment and infrastructure priorities.
AUSTRALIA 2030 Strategic Plan for Innovation, Science and Research: A strategic
plan for innovation, science and research systems. This Plan identified
investment and infrastructure priorities.
NSW 2021 - A Plan to Make NSW Number One: Common goals that enabled
partnerships with RARE 5.0 included; improving the performance of the NSW
economy, driving economic growth in regional NSW, increasing competitiveness
of doing business in NSW, strengthening the NSW skill base, investing in critical
infrastructure, and protecting our natural environment.
Smart Specialisation Strategy for the Hunter: Established an
agenda for economic transformation in the Hunter region by analysing
and defining regional competencies and determining new areas of
opportunity.
Waste Strategies and Policy: NSW Government strategies and polices relating to
waste, stem from the requirements set out in the NSW waste legislation, particularly
the Waste and Resource Recovery Act 2001. Reducing waste generation and keeping
materials circulating within the economy are priorities for NSW.
NSW Innovation Strategy 2016: Framework to boost innovation in NSW.
Hunter Regional Plan 2036: At the launch of the HunterNet Future Leaders
program, members of RARE 5.0 were able to speak with Scot MacDonald the
Parliamentary Secretary for the Hunter, regarding how the Hunter Region was
expected to change by 2036, including; the need to explore opportunities to
increase exports by partnering with education and research institutions and the
Hunter is strategically situated to leverage proximity to Asia and supply Asian
economies with resources and products.
Smart Specialisation Strategy for the Hunter Region (2016): Establishes
an agenda for economic transformation in the Hunter region by analysing and
defining regional competencies and determining new areas of opportunity.
Newcastle Smart City Strategy: Smart Cities are magnets for
knowledge, talent, creativity, high value jobs and investment.
Economic Development Strategy: RARE 5.0 capitalised on predictions for
growth identified in the Economic Development Strategy, including; growth in
knowledge based sectors, manufacturing and The Port.
Non-Government Initiatives:
STEM+M Strategy 2025 (2016) (University of
Newcastle)
NeW Futures Strategic Plan 2016-2025
(University of Newcastle)
12Timeline of RARE 5.0 (2017 - 2037)
2018 - 2021
Fundingand
Funding andCollaboration
Collaboration
2017 Funding petitions granted
Formation of RARE 5.0 Partner with NIER, NUW Alliance and CSIRO for research
Identified decline of REE and detrimental and development
environmental impacts in mining REE
RARE 5.0 and NIER win the Waste to Resources Innova-
Identified growing opportunities and research in tion Award - builds our profile
the waste to resources sector
Became a member of the Advanced Manufacturing Growth
Founding members presented idea and won Centre
HunterNet Future Leaders Program 2017 and
Built positive relationships and conducted market research
realised RARE 5.0 is a viable concept through
with key prospective customers aligned with our strategy
market and customer research
to engage market leaders: TESLA, Apple, Samsung, Sony,
RARE 5.0 set up as partnership SpaceX, Siemens
2021 - 2025 2026 - 2030
Research and Development Build Manufacturing Plant
Funding provided by the Advanced Manufacturing Secure debt funding to build manufacturing plant
Growth Centre to develop technology
Partner with Advanced Manufacturing Growth Centre to scale-up technology.
Innovation to Commercialisation Grant received to
support development of pilot plant Design and build manufacturing plant - including Development Application
process
Establishment of RARE 5.0 HQ at Mayfield –
Research facility and Pilot Plant Continued R&D into site specific innovation
Continued partnership with NIER - PhD student Partnered with TAFE to offer apprenticeship in Mechatronics
research continues
Global partnerships to source waste 2030 - 2035
Furthered global customer relationships for Commence Production
product purchase
Production of synthetic Neodymium (Nd) and Praseodymium (Pr) commences
Begin process to develop Lanthanum (La) at pilot plant
Breakthrough in customisation – ability to produce REE’s with customisable
properties to suit specific applications
2035 - 2037
Where to now
Modified the properties of Nd and Pr to provide
optimum properties for the final application
Exploring opportunities to diversify – utilise
partnerships to manufacture and export clean energy
technology requiring REE’s: E.g.: batteries, electric
motors.
Explore opportunities to collaborate with the
Australian Space Agency - supporting innovation and
technology to enable Newcastle Airport to go galactic,
Australia’s first Space Port.
13Key Collaborations - Partners and Customers
With REE forming a key production requirement for both the technology and renewable energy sectors, RARE
5.0 looked at the global market for REE. We approached many organisations including Tesla, Apple and Space
X to see if synthetic REE would be a viable option to progress their technologies, and the idea was met with
excitement and with such strong support, there was the realisation of a marketable product line.
Strong partnerships enabled us to balance the opportunity to achieve large-scale impact, while taking a so-
phisticated approach to managing risk and dealing with the inevitable failures that feature in a portfolio of such
bold projects. Key partnerships were formed with government, education and research institutions, leaders in
advanced manufacturing, Newcastle Airport – SpaceX, with global companies, Tesla, and locally through col-
laboration with HunterNet. These partnerships enable an integrated education and skills system approach that
supported a workforce capable of reacting and adapting in real time to change.
Government Educational and Research Institutions
Through establishment of government relationships
RARE 5.0 were able to identify and capitalise on
STEM (Science, Technology, Engineering &
employment and investment generators. We were
Mathematics)
able to strengthen relationships with government
agencies and others involved in regional economic RARE 5.0 were lucky enough to have input into the
development. These relationships enabled RARE 5.0 STEM curriculum, and push the science and engi-
to also maintain active partnerships and linkages with neering sectors of STEM to look at waste to resource
major businesses and industry groups. RARE 5.0 had innovation. We increased the quality and quantity of
success working with Governments all over the world job applicants for manufacturers and provided industry
to import excess waste for sustainable production of visits for over 3,000 students.
our product.
HunterNet
HunterNet’s desire to present local businesses to the
global market was a game changer for RARE 5.0,
allowing our product to reach the global market and to Hunter TAFE
spread our message that technology can be produced RARE 5.0 is working with Hunter TAFE to develop the
with a positive impact on the earth. HunterNet provid- skillsets of our next generation. We have provided and
ed key networking opportunities and were catalysts will continue to provide annual apprenticeships for Cert
for key partnerships that enabled national and global 3 Mechatronic Maintenance, an area vital to efficiently
business investment in RARE 5.0. running our production plant.
14NIER & NUW Alliance Advanced Manufacturers
The NIER (Newcastle Institute for Energy & Re- Advanced Manufacturing Growth Centre
sources) and NUW (Newcastle University, Univer- RARE 5.0 received a grant from AMGC during the
sity of NSW & University of Wollongong) alliance development of the production plant to help scale up
was the catalyst for most of what RARE 5.0 have production of synthetic REE.
achieved. NIER alongside NUW alliance made
significant advancements in waste rejuvenation
technologies that allowed RARE 5.0 to create a
product unknown to the world in 2017. NIER and
NUW made a breakthrough that allowed waste
to be recycled and rejuvenated into the synthetic
Hedweld
REE neodymium and praseodymium, and contin-
ue to push the boundaries of producing synthetic RARE 5.0 and Hedweld collaborated during the con-
rare earth elements which allows the technology struction of their world first facility at the former BHP
we love to advance while maintaining our beautiful site. Hedweld understood what RARE 5.0 was trying
rare earth. to achieve with this facility, and assisted with design,
manufacture and automation of all machinery.
Newcastle Airport & SPACE X
Space X began conversations with RARE 5.0 and
CSIRO Newcastle Airport in 2035, as they wished to establish
themselves in Newcastle. Space X approached RARE
CSIRO came on board with RARE 5.0 in 2021 and
5.0 to look at synthesising specific REE that would
worked alongside NIER & NUW alliance to make
continue to benefit the space industry and potential
advancements in other synthetic REE’s. CSIRO spe-
to use these elements on other planets as the human
cialises in nanotechnology, biotechnology, and clean
race started to explore living further afield.
technology (e.g. solar energy, wind management and
optimisation, energy efficiency and energy storage). Tesla
A driver key to RARE 5.0’s success was an announce-
ment by Tesla in 2017 that they were moving to a per-
manent NdPr magnet electric motor for their electric
vehicles and beyond. Tesla’s CEO, Elon Musk, took
an interest in the research that was being conducted
through NIER & NUW alliance, and when RARE 5.0
had their first breakthrough, Elon made the decision to
set-up a research facility in Newcastle to begin work
on the next evolution of the permanent magnet electric
motor.
15Environmental Considerations
Circular Economy
Imagine a world where we have an abundance of
clean air, water, and soil. Where everything we make
is designed to be regenerative and renewable. This is
the future of Newcastle and the Hunter, lead by RARE
5.0. Our team encourages Newcastle businesses to
educate and build a circular economy network that
inspires and nurtures its individuals and business
partners. We provide the framework our local industry
needs to make this a reality. The RARE 5.0 team in-
novates and integrates in-house skillsets and through
collaboration with cross sector partners, lay the plat-
form for a more sustainable and greener economy.
Sustainable Practices
RARE 5.0 has learning programs in place to engage with communities and education systems to enhance recy-
cling knowledge at the grass roots. This proactive investment in culture change is fundamental for a sustainable
future.
RARE 5.0 supplies REE to those who use them in the manufacture of magnets used in electric cars, which now
account for more than 30% of world vehicles following a gradual phase out of combustion engine vehicles in
developed countries. This has a range of environmental benefits including reducing harmful air and noise pollu-
tion from exhaust emissions, as electric vehicles have zero exhaust emissions and also have an eco-friendlier
production process.
RARE 5.0 promotes the re-use of any materials not required in the manufacture of its REE. The material
deemed unusable by the RARE 5.0 team is tagged, handled and transported to other neighbouring waste facili-
ties where the material is then assessed for the re-purpose of other products such as solar and metals.
16Green Collar Future Humanitarian Aid
We see blue collar workers transitioning to green Health Risks Associated with Mining REE
collar. RARE 5.0 plays a key role in the move towards
• Increased risk of heart attack
a low carbon and environmentally friendly economy.
RARE 5.0 operate a highly efficient, automated and • A lung disease called pneumoconiosis in workers
environmentally friendly manufacturing facility and will who inhale mine dust and metal fumes
employ business professionals to focus on training and • Rare condition called nephrogenic systemic
upskilling staff in greener technologies. fibrosis, where excess connective tissue forms in
the skin, joints, eyes, and internal organs
• People residing in areas with high levels of REE
had abnormal levels of some blood proteins
• Children exposed to REE have significantly lower
IQ scores. This is thought to result from disrupted
brain neurotransmitters.
• Leukaemia is associated with environmental
pollution from REEs
• Globally workers have previously been exposed
to mental trauma, injury and occasionally death
The humanitarian benefits of manufacturing
REE from waste cannot be undervalued.
The impact that mining has on communities,
villages, livestock, crops and people is
significant. RARE 5.0 moulds a safer future
by the re-purpose of waste materials, which
minimises the need to mine REE.
17Research and Intellectual Property
Intellectual Property Keeping our research in house
In 2017, RARE 5.0 purchased the Intellectual Property RARE 5.0 recognises that the highly technical process
of initial research and PHD into synthesis of REE un- developed to allow synthetic production of REE’s is a
der an arrangement in which modest upfront payment key market advantage. By employing all key personnel
was made to fund the research and a generous roy- directly and completing all research in house, RARE
alties scheme were guaranteed on commercialisation 5.0 could protect the IP during the research, testing
of the product. In a time where the University sector in and proving phases of business development. RARE
Australia had been largely deregulated and required 5.0 requires all employees, consultants, and collab-
Universities to be financially self-sufficient, this deal lat- oration partners with access to IP and technology to
er placed NIER and NUW Alliance in a strong financial execute confidentiality and non-compete agreements.
position, and enabled to build on strong foundations
RARE 5.0 provides interested parties and potential
to become one of the world leaders in clean energy
partners with an understanding of the organisation,
technology research.
product successes and capabilities, without disclosing
Research Headquarters critical details of the processes developed to produce
key products.
In 2028, in preparation for commercialisation, RARE
5.0 transitioned to a company structure and built an
onsite research laboratory/pilot plant headquarters in
Mayfield (which had been strategically identified as a
future production site). RARE 5.0 is committed to on-
going improvement, diversification and customisation
of the product range. Beyond full scale manufacturing
commencing on the site, the research laboratory/pilot
plant remains critical for continuous improvement and
product development.
18Operations
Why produce REE in Newcastle?
World Class Research Facilities
World Class Advanced Manufacturing facilities
Natural advantages in exports – deep water port facilities
International Airport with good regional and international connections
Skilled workforce available locally
Traditional roots in manufacturing and energy resource exports
Attractive lifestyle enabling recruitment and retention of employees
RARE 5.0 Manufacturing Facility Key Facilities
In selecting the headquarters site, RARE 5.0 attempt- • Purpose built research laboratory on site with pilot
ed to find a site which would house all aspects of the plant – enables rapid prototyping and testing and
business from administration through to research and continuous improvement
production. This centralised approach would enable • Adequate space for stockpiling of input materials,
RARE 5.0 to be an agile business, able to quickly export material (REEs), containers.
respond and capitalise on market demands. RARE
• Spare capacity for sub-letting, future
5.0 sought a site offering sufficient capacity for future expansion and/or diversification into advanced
expansion, with good access to road and rail transport manufacturing
and Newcastle Port. Located on part of the former
• Access to rail line and transport – existing line
BHP Site, a 52-hectare site known as the Intertrade running along perimeter of site – and road links
Site fronting Industrial Drive was chosen. via Industrial Drive providing access north to
Newcastle Airport and South to Sydney via M1
• Adjacent to Newcastle Container terminal allowing
for efficient export of material
19Sourcing Raw Materials Minimum Viable Product (MVP)
70 million tonnes of e-waste was generated globally in RARE 5.0 utilise their on-site research laboratory and
2017, and as it is not widely captured it often ends up pilot plant to test and prove new processes prior to
in landfill. This unsustainable practice motivated RARE entering full scale production. This allows for small
5.0 to consider alternative uses. RARE 5.0 created scale tests that minimise cost and wastage, and allow
and collaborated on many fronts with state, federal for continual improvement of existing processes. The
and international governments to help find a solution high-value nature of the REE’s produced by RARE 5.0
to the growing amount of e-waste, and secure a stable (in the order of 1000 times the value of export coal per
source for production. tonne) and ability to export small quantities economi-
cally all for economically viable production of relatively
Creating something from e-waste is one thing, but
small volumes.
ensuring raw materials for production (the correct mix
of general waste and e-waste) is critical to maintaining
consistent production. Sourcing the general waste
component of production was relatively easy. Through Manufacturing Value Chain
partnership with Newcastle and surrounding local While Australia had a rich history of manufacturing,
Councils, sufficient supply of waste was secured and it moved towards being a resource exporter during
prevented from entering landfill. the 2000’s with little value add to its exports as steel-
making and manufacturing was increasingly moved
RARE 5.0’s facility is ideally located to receive incom-
offshore. RARE 5.0 have an advantage in this space
ing waste products via a range of sources including
in that while the primary export remains as commod-
road, rail and sea and assisted in securing the e-waste
ity, the highly technical process enabling production
required for REE production. The arrival of empty
of REE from waste provides a substantial advantage
vessels into Newcastle Port was identified as a signif-
over traditional mining techniques, both in cost and
icant opportunity for RARE 5.0 to receive e-waste for
environmental impact.
sustainable production. By utilising empty bulk carri-
ers and providing discounts for customers returning
distribution containers with e-waste, RARE 5.0 could
establish a secure supply of e-waste. The production
of synthetic REE’s and consumers recycling e-waste
became a circular economy that was fuelling its own
demand.
20Man and Machine Export and Distribution
Whilst capitalising on Industry 4.0, the foresight of RARE 5.0 commenced manufacturing of Neodymium
Industry 5.0 has been front of mind for RARE 5.0. and Praseodymium in 2030. These materials have a
Industry 4.0 established a hyper-connectivity that went relatively high density of 7001kg/m3 (Neodymium) and
beyond the factory walls where production means 6770kg/m3 (Praseodymium), which is approximately
interaction not only with the factory environment itself 10 times higher than a typical export coal. The han-
but along the value chain. However, Industry 4.0 had dling characteristics and distribution considerations
forgotten the human element. Industry 5.0 focuses are also vastly different to a typical bulk solid. While
on closer cooperation between man and machine, Newcastle has a rich history in bulk material exports,
and systematic prevention and repurposing of waste. an innovative approach was required by RARE 5.0 to
Further to physical waste, addressing impacts of social develop distribution facilities for their REE production
waste where humans are willing to work, but having no that considers the specific handling requirements of
opportunity to apply the will. the product.
RARE 5.0 capitalised on the unique skills of Newcastle REE’s oxidise on contact with moisture or the atmo-
and the Hunter, and supported by smart technology, sphere and this was a key consideration in the de-
humans and machines collaborate simultaneously sign of the storage and distribution methods. Sealed,
on the factory floor as a ‘connected workforce’, This airtight containers were designed in a range of sizes
aligned to our people philosophy and the need to to provide flexibility for distribution to a range of cus-
respond to increasing demand amongst customers for tomers requiring varying quantities. The larger modular
a higher degree of improvement and customisation. containers were designed to be compatible with stan-
RARE 5.0 has created a platform for innovation that dard shipping container bases to allow maximum flexi-
positively influences the region by creating new job op- bility of transport options around the world by sea, rail,
portunities, attracting and retaining talent in a transition and road. The location of RARE 5.0 provides efficient
from a blue collar to green collar workforce. access to the adjacent port facilities and can facilitate
fast turn-around small quantity orders to international
customers utilising Newcastle Airport’s International
Freight services.
21RARE 5.0 Business Model
Strategy Staffing
RARE 5.0 harness a competitive advantage through a Our People Philosophy
growth and differentiation strategy.
At RARE 5.0, we recognise the unique skillset of New-
castle and the Hunter. RARE 5.0 are leading the rev-
olutionary development of a highly skilled blue collar
RARE 5.0’s Global Competitive Advantage
workforce toward green collar, with core focus on the
• A global demand for sustainable solutions to integration between technology and the environment.
technology development Acknowledging the advancements in artificial intelli-
gence and our vision of waste eradication (i.e. social
• Forefront of research, development and
innovation in Newcastle, the Hunter and globally waste), we maintain that an organisation is only as
good as their tools and at RARE 5.0 we have a strong
• Safeguards to protect our Intellectual Property
focus toward proactive maintenance. Our maintenance
and a product difficult to replicate
team are as strong as our research team, and just as
• Efficiently utilise highly automated and advanced valuable to the success of our company.
production methods
Our people objective is to provide opportunities to
• Effectively utilise a workforce of machines and
develop our workforce from within. RARE 5.0 have
people in synergy with the environment
partnered with Hunter TAFE to deliver Certificate 3
• Highly technical production process to Mechatronic Maintenance apprenticeships onsite, an
manufacture high quality products
area vital to efficiently running our production plant.
• Globally recognised as a leader in innovative, We endeavour to attract and recruit our workforce
sustainable and environmentally friendly straight out of secondary education, and offer oppor-
alternatives tunities and flexibility to complete tertiary education in
• Strong global relationships with key distributors conjunction with their employment – apprenticeships,
and customers university placements, PhD research etc.
RARE 5.0 was first to market in production of REE’s
and established market dominance due to competitive
and commercial advantages afforded by the highly
technical process. In order to further grow the business
and further solidify RARE 5.0’s place as a global ex-
port leader, future opportunities are being explored to
diversify into manufacturing of batteries, solar panels,
Our Leadership philosophy is one of
or wind turbines. Utilising low cost REE (traditionally a
significant cost of production) would allow RARE 5.0 collaboration and engagement. Our people
to capitalise on their market advantage and value-add love what they do, because it’s meaningful and
manufacture. they feel supported. There is a shared mission
and vision, the values guide behaviours, and
we acknowledge that hearing (ideas concerns,
feedback) of our employees is an advantage at
RARE 5.0.
22Our Team
Shareholders Skillsets Board of Directors
Amber Stewart - Strategic Analyst & Relation- Chief Executive Office (Executive Director)
ship Management - Ellie Langford
Michael Cecil - Manufacturing Innovation Advanced Manufacturing Industry Leader
- Ian Hedley
John Coomer - Enviroment & Logistics
Product Expert - Gavin Foster
Ricky McLean - Engineering & Materials Han-
dling Environmental Expert - Tim Browne
Ellie Langford - Human Resources, Business Research Expert - Alan Broadfoot
Administration, Work Health & Safety Newcastle Skills Expert - Rick Evans
Shareholders Organisational Departments
Executive Leadership
Research & Development
Purchasing
Production & Quality
Sales & Marketing
Accounting & Finance
Human Resources
From five founders in 2017, to 250 employees and 150 contractors in 2037, RARE 5.0 is a leading
employer in Newcastle and the Hunter providing opportunities to continuously develop our skilled work-
force and create economic stimulus to sustain our region.
Structure
RARE 5.0 formed a general partnership during start-up and initial R&D phases with a 20% share per
partner. In preparation of commercialisation, and for risk, flexibility and confidentiality reasons, the
partnership transitioned to a private company structure with the founding members to be five named
shareholders.
23Cash Flow
Funding Sources
Year/s Key Milestones Funding Sources
Build relationship with NIER, upfront NERA - National Energy Resources Australia
2017
fee to commence research (NERA), federal government grant - $3M
Obtain IP from NIER and NUW
2019 Attached to a royalty scheme
Alliance
Advanced Manufacturing Growth Centre
2021 Continue research and development
provide funding
Build RARE 5.0 Headquarters (Pilot
2023 – 2028 Plant and Research Facility) Strategic partners fund further research at the
RARE 5.0 facility
Ongoing research and development
Federal Government grant to build a
production facility with the condition that global
export would rise steadily over a 10-year
Build RARE 5.0 state of the art period. Innovation to commercialisation grant
Manufacturing plant and purchase of $1M.
2028 – 2030 equipment
Grant from AMGC during the development
Scale up of production plant from pilot of the production plant to help scale up
plant volumes production of synthetic REE.
Debt finance - $150M
Production Cost Efficiencies
RARE 5.0 produce REE from waste products, which has a significant production cost advantage over traditional
mining methods. RARE 5.0 can produce REE with superior properties to extracted minerals, at a significantly
lower cost, and without negative environmental impacts.
RARE 5.0 partner with educational partners to reduce labour cost in return for opportunities to develop skills.
RARE 5.0 take on a number of PhD students to complete research and apprentice’s onsite at the manufacturing
plant at our Mayfield site.
RARE 5.0 are eligible for the research and development (R&D) tax incentive as their on the basis the organisa-
tion is generating new knowledge which will directly benefit Australia.
24Market Value and Revenue Streams
World Market for Rare Earth Elements
1,000,000
900,000
800,000
700,000
Tonnes Per Annum
600,000
500,000
400,000
300,000
200,000
100,000
-
2015 2020 2025 2030 2035 2040 2045 2050
Year
World Mining Production of Rare Earth Elements (t) Estimated World Demand for Rare Earth Elements (t)
RARE 5.0 Annual Production of Synthetic Rare Earth Elements (t)
RARE 5.0 commenced production of REE’s in 2030 and was immediately able to capitalise on the supply/demand
imbalance and secure advanced orders for 100% of production output. This allowed RARE 5.0 to ramp up produc-
tion capacity over a series of expansions to the production facility to meet increased world demand.
25Conclusion
RARE 5.0 is the leading manufacturer of sustainable and environmentally friendly alternatives to mining REE
which enable the continuation of technology development to meet consumerism demand. This has been
achieved through world-class research, innovation in advanced manufacturing, advancement of skillsets and
global connectivity paired with local capability.
A key objective of RARE 5.0 is to take waste repurposing (industrial upcycling) and waste eradication (physical,
social etc.) to a level unforeseen, as we globally transition towards green technology and a circular economy.
RARE 5.0 has put Newcastle and the Hunter on the map as a global export leader in innovative solutions to
global needs whilst maintaining the pillars in which our city was built. We would like to attribute our success to
the key relationships and collaborations that have been formed throughout their journey to date.
There is no conclusion for RARE 5.0, this is only the beginning. RARE 5.0 is continuously seeking opportunities
to innovate, diversify its product range and beyond.
26References
1. S3: A smart specialisation strategy for the Hunter 20. http://www.portofnewcastle.com.au/Resources/
Region - Regional Development Australia - Documents/Port-of-Newcastle-Fact-Sheet---
Hunter, 2015 Mayfield-Site-Concept-Plan---For-web.pdf
2. STEM+M Strategy 2025: A new future 21. https://www.newcastle.edu.au/research-and-
underpinned by Science, Technology, innovation/innovation/three76hub
Engineering, Mathematics and Medicine
University of Newcastle, 2016 22. https://www.newcastle.edu.au/newsroom/featured-
news/slingshot-and-uon-to-bring-new-accelerator-
3. Newcastle City Council (2017). Economic to-hunter-region
Development Strategy 2016 - 2019
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development-tax-incentive/eligibility/eligible-
5. Newcastle City Council (2017). Smart City activities/
Strategy (2017 - 2021)
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6. Newcastle City Council (2017). Economic
Development Strategy 2016 - 2019 26. http://thediplomat.com/2017/08/revisiting-rare-
earths-the-ongoing-efforts-to-challenge-chinas-
7. Newcastle City Council (2017). Smart City monopoly/
Strategy (2017 - 2021)
27. https://www.lynascorp.com/Pages/How-Rare-
8. USEPA (2012). Rare Earth Elements: A review Earths-Are-Used.aspx
of Production, Processing, Recycling, and
Associated Environmental Issues. December 28. http://www.australianrareearths.com/
2012. 29. http://www.abc.net.au/news/rural/2017-04-17/next-
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earths-the-ongoing-efforts-to-challenge-chinas- 30. http://www.ga.gov.au/data-pubs/data-and-
monopoly/ publications-search/publications/aimr/rare-earths
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11. https://www.nsw.gov.au/improving-nsw/premiers- channels.html
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a-new-era-of-modern-manufacturing 33. https://www.thermofisher.com/blog/metals/rare-
13. http://www.rareelementresources.com/rare-earth- earth-element-recycling-hype-or-hope/
elements#.WcWwFbpuKuU 34. https://www.accessscience.com/content/rare-
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earth-element-recycling-hype-or-hope/ BR0113142
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earth-elements-recycling-or-replacement/ so-bad-at-recycling-rare-metals-from-technology/
BR0113142 36. https://investorintel.com/sectors/technology-
16. https://www.industry.nsw.gov.au/business-and- metals/technology-metals-intel/investorintel-rare-
industry-in-nsw/innovation-and-research/boosting- earths-monthly-july-2017/
business-innovation-program 37. http://www.theherald.com.au/story/4551653/last-
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business/blog/congo-child-labour-mobile-minerals 38. https://www.forbes.com/sites/
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business/rare-earth-mining-china-social- of-rare-earth-minerals-a-wake-up-call-to-the-
environmental-costs world/#1d3e09983a42
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aug/07/china-rare-earth-village-pollution
27Appendices
Appendix 1 – Key Uses of REE
Figure 1 - Key uses of REE - Source: USEPA (2012). Rare Earth Elements: A review of Production, Process-
ing, Recycling, and Associated Environmental Issues. December 2012.
28Appendix 2 – World Market for Rare Earth Elements
The world has become dependent on imports, many from China, for 19 key minerals known as “rare earth” ele-
ments. These elements are used in the integrated circuits found in most computers and smartphones, batteries,
radar technology, as well as permanent magnets used in electric motors for wind turbines and electric vehicles.
In 2010 the price of REE soared as China, producer of more than 80% of world supply, imposed severe export
quotas. The spike in prices lead to an increase in mine exploration worldwide to increase REE extraction, how-
ever price stabilisation and low concentrations of REE found in typical deposits has resulted in few new mines
entering production due to economic viability. The result is only a marginal increase in world supply and confir-
mation that the market is very inelastic in response to world demand.
The magnet market REE, Neodymium and Praseodymium experience a significant increase in demand as the
world moves towards clean energy with both elements critical for production of wind turbines and electric motors.
The staged phase out of combustion engine vehicles throughout developed countries from 2030-2040 drives a
huge demand spike for these REE which is unable to be met by traditional mining. The supply to demand imbal-
ance not only drives prices upwards, but provides RARE 5.0 an opportunity to successfully enter the market in
2030 and immediately secure a significant market share. Figure 1 outlines the key market growth to 2037 and
predicted market growth to 2050.
Figure 2 - World Market for Rare Earth Elements
2930
31
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