‘Clean technologies are expected to take a much larger share of total demand. Between 2024 and 2040, the clean technologies share of nickel demand is projected to increase from 17 percent to 42 percent, and of magnet rare earth elements from 21 percent to 31 percent.’
The Philippines has emerged as one of the world's largest importers of rare-earth permanent magnets, highlighting its growing role in global supply chains supporting electric vehicles, renewable energy, and other clean technologies as demand for critical minerals accelerates.
A report by the United Nations Conference on Trade and Development (UNCTAD) showed the Philippines ranked sixth globally in 2024, accounting for 6.6 percent of worldwide imports of rare-earth permanent magnets — materials widely used in electric vehicle motors, wind turbines, battery storage systems, and advanced electronics.
Only the European Union, Japan, the United States, Mexico and the Republic of Korea imported larger volumes during the year, according to UNCTAD estimates based on UN Comtrade data.
The country's position comes as governments and industries race to secure supplies of critical energy transition minerals (CETMs), which have become increasingly important in the shift toward low-carbon technologies.
The International Energy Agency expects demand for these minerals —including lithium, graphite, rare earth elements, cobalt, nickel, and copper — to continue expanding through 2040, driven largely by clean energy investments.
UNCTAD said clean technologies will account for a significantly larger share of mineral consumption over the next 15 years.
“Clean technologies are expected to take a much larger share of total demand. Between 2024 and 2040, the clean technologies share of nickel demand is projected to increase from 17 percent to 42 percent, and of magnet rare earth elements from 21 percent to 31 percent,” the report said.
Rare-earth permanent magnets have become indispensable components in modern manufacturing because they power electric vehicle traction motors, wind turbine generators and a wide range of industrial and defense technologies.
The report noted that growing reliance on imports has made many economies increasingly vulnerable to supply disruptions, prompting governments to diversify suppliers, invest in domestic processing, expand recycling, and forge strategic partnerships.
“This deep interdependence heightens exposure to supply disruptions and underscores the importance of diversifying supply sources, enhancing market transparency, and strengthening international cooperation to ensure an open, stable, secure, transparent, rules-based and sustainable CETM supply,” UNCTAD said.
At the same time, several mineral-producing countries have begun tightening export policies to capture greater value from their natural resources through domestic processing, industrial development, and job creation instead of exporting raw commodities.
UNCTAD said these measures are reshaping global supply chains as countries seek to strengthen their positions in industries linked to the global energy transition.
For the Philippines, its growing participation in the rare-earth magnet trade reflects increasing integration into industries supporting electric mobility and renewable energy, sectors expected to remain among the fastest-growing markets over the coming decades.
