Revitalising A Rare Earth2017 - 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

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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.

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IntroductionIn 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.

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The World in 2037

Population Growth

8.9b

We have witnessed the world change significantly. The world population is now 8.9 billion, world sales of electric cars has reached 18 million. Over 60% of the world’s population now live in cities, that are charged by batteries, our public transport, our homes and per-sonal vehicles, even air travel rely on strong, reliable batteries.

China Dealing With Inflated WagesChina has been forced to deal with the inflation of its minimum wage surpassing the highest level to date. This has impacted the Chinese economy and it is overheating on a grand scale. This has opened up China as an export market.

India Filling the Gap of Cheap, Low Quality Production India has overtaken China with a population of 1.6 billion to leave China in second place with 1.3 billion people. China’s production industry has decreased, and made way for India’s industry. The quantity of cheap, low quality products have increased which has had a significantly adverse effect on the environment.

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.

Everything off The Grid, PortableAs the cost of electricity increases we are seeing innovation in on-site energy sources that have changed the economics of global power supply. On-site generation systems creating power at the point of consumption, using energy sources such as solar, wind and geothermal, was a short-term solu-tion. The global economy is in the mist of the battery revolution; with living off the grid making living more environmentally friendly, easier and more affordable.

Labour and RoboticsGlobally 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 labour market. Human value will be set by the cost of equivalent machine intelligence. Humanity will need to rely on creativity and innovation for survival in an ever-growing automated society. The ideal future will see robots replace manual labour-intensive work and create new opportunities and new skilled work for humans.

Global Waste Problems Waste amount is largely determined by two factors. First the population and second its consumption patterns which are controlled by the evolution of gross domestic product per capita. Every year we dump a massive 2.12 billion tons of waste. This is only set to increase. The global cost of dealing with all the waste is on the rise, and is estimated at $425 billion in 2037, with the sharpest cost increases in developing countries.

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BHP’s closure of its Newcastle steelmaking plant

in 1999 sparked the city’s reinvention, forging

a resilient community, with a renewed focus on

innovation to create new industries, ventures and

jobs – and cultivate a new image as a modern

leading city.

Newcastle & The Hunter in 2037Newcastle and the Hunter Region have overcome adversity from downturns to disasters, yet has the tenacity and resilience to reinvigorate, reinvent, and collaborate to grow stronger. Newcastle is the second largest city in New South Wales and the sixth largest in Australia.

In 2017, at the inception of RARE 5.0, the city of Newcastle’s was transforming from industrial heartland to thriving, connected international city at a gathering pace. Newcastle is the economic capital of the Hunter, and Australia’s largest regional economy. The Hunter drove 28 percent of regional NSW’s total economic output and was the largest regional contributor to the State’s gross domestic product. Newcastle has an in-ternational profile as a major port city, and gateway to the world for the Hunter’s resources. The Hunter was, and still is, known for our skilled workforce, high-stan-dards of research and the business environment is typified by cross-company collaboration and network-ing.

Today, Newcastle has exceeded anticipated population growth, growing to 891,000 persons, a 10% increase on original estimates. Newcastle leads the way in waste to resources manufacturing, resulting in a 20% increase in job creation from original estimates.

Newcastle is home to two nationally significant gate-ways, Newcastle Airport and the Port of Newcastle. These international assets have seen enormous opportunities to enhance connectivity of the Hunter to the Asia-Pacific region and beyond. Newcastle Airport is the newest global Space Port, perfectly located along the east coast of Australia. The Port site has rapidly expanded as a key waste to resources inno-vation centre. During expansion of the Port, news that the Port Botany container terminal was predicted to reach capacity by 2035, meant Newcastle was able to capitalise on this opportunity and establish a global container handling facility in 2030.

Manufacturing in the region is highly capable and effi-cient. Manufacturing is the third largest employer in the Hunter region, employing 9.9 percent of the regions workforce. Coal exports had traditionally supported in-dustry growth, however even with record coal exports, the Hunter recognised the need to diversify. Our inno-vators are finding a place for their talents in high-value jobs such as clean technologies, aerospace, medical technology and advanced manufacturing.

HunterNet is recognised as Australia’s premier organi-sation for industry collaboration and innovation, bring-ing together 2000 companies from the mining, resourc-es, infrastructure and related research sectors in the Hunter Region. HunterNet is an enabler for collabora-tion, providing pathways to government, major indus-try, shared knowledge and resources, and funding opportunities. The HunterNet model has contributed to growth regionally, nationally and globally.

The coming decades will continue to bring significant economic, geopolitical, environmental and social chal-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.

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Rare Earth Elements

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 REEThe 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.

What Are They and Why Are They Important?

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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 REEAs 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.

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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.

Introducing RARE 5.0Our Why We love what we do because of why we do it

We: • seek opportunities to provide solutions to global

needs

• strive for sustainable and environmentally friendly options

• aid in global waste eradication through means of repurposing and industrial upcycling

• acknowledge the cooperation between man and machine

• recognise Newcastle and the Hunter as a resilient economy with a highly skilled workforce

• 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 Values

We Are Green Collar

Continuously creating sustainable solutions to glob-al business needs while improving the quality of the environment.

We Care About People

Respectful and mutually beneficial relationships with collaboration partners, suppliers, purchasers, employ-ees and the global community.

We Represent Newcastle

Acknowledging our industrial past to build the future we desire through first class research, innovation and advanced manufacturing.

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Our What RARE 5.0 manufacture rare earth elements through a revolutionary process that repurposes waste materials and eliminates environmentally damaging mining processes.

At RARE 5.0, our what is leading transformational research, production and global distribution of REE that provides sustainable and environmentally friendly alternatives to mining. RARE 5.0 manufacture REE through a revolutionary process that repurposes waste materials to produce synthetic REE with superior prop-erties to naturally extracted materials. Our product is created through repurposing both general and e-waste with the objective of aiding the movement towards a regenerative circular economy. RARE 5.0 remain a proudly Newcastle based company, with ongoing 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 How At RARE 5.0, our team commenced with the five founding members meeting through the HunterNet 2017 Future Leaders Program, all of whom shared a passion for Newcastle, leadership and sustainabil-ity. Through discussion of how we could achieve our why, the initial concept of producing synthetic REE in a sustainable and environmentally manner which in turn would allow technology to continue to evolve and address global waste problems was shaped. Whilst we had an innovative vision, we did not necessarily possess the full skillset to deliver this on our own. Over the past 20 years, RARE 5.0 collaborated with industry and environmental leaders, government, research and education institutions, suppliers and consumers to cre-ate and distribute a high-quality solution as the world transitions to a clean energy high-tech future.

Our Brand Explained - RARE 5.0Revitalisation – (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.

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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.

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.

Non-Government Initiatives: STEM+M Strategy 2025 (2016) (University of Newcastle)

NeW Futures Strategic Plan 2016-2025 (University of Newcastle)

Planning Context

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.

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.

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.

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.

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Formation of RARE 5.0 Identified decline of REE and detrimental environmental impacts in mining REE

Identified growing opportunities and research in the waste to resources sector

Founding members presented idea and won HunterNet Future Leaders Program 2017 and realised RARE 5.0 is a viable concept through market and customer research

RARE 5.0 set up as partnership

Timeline of RARE 5.0 (2017 - 2037)

2017 Funding and Collaboration

Funding petitions granted

Partner with NIER, NUW Alliance and CSIRO for research

and development

RARE 5.0 and NIER win the Waste to Resources Innova-

tion Award - builds our profile

Became a member of the Advanced Manufacturing Growth

Centre

Built positive relationships and conducted market research

with key prospective customers aligned with our strategy

to engage market leaders: TESLA, Apple, Samsung, Sony,

SpaceX, Siemens

2018 - 2021

Research and Development Funding provided by the Advanced Manufacturing

Growth Centre to develop technology

Innovation to Commercialisation Grant received to

support development of pilot plant

Establishment of RARE 5.0 HQ at Mayfield –

Research facility and Pilot Plant

Continued partnership with NIER - PhD student

research continues

Global partnerships to source waste

Furthered global customer relationships for

product purchase

2021 - 2025 Build Manufacturing Plant Secure debt funding to build manufacturing plant

Partner with Advanced Manufacturing Growth Centre to scale-up technology.

Design and build manufacturing plant - including Development Application

process

Continued R&D into site specific innovation

Partnered with TAFE to offer apprenticeship in Mechatronics

2026 - 2030

Commence Production 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

2030 - 2035

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.

2035 - 2037

Funding and Collaboration

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Key Collaborations - Partners and CustomersWith 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.

GovernmentThrough establishment of government relationships RARE 5.0 were able to identify and capitalise on employment and investment generators. We were able to strengthen relationships with government agencies and others involved in regional economic development. These relationships enabled RARE 5.0 to also maintain active partnerships and linkages with major businesses and industry groups. RARE 5.0 had success working with Governments all over the world to import excess waste for sustainable production of our product.

Educational and Research Institutions

STEM (Science, Technology, Engineering & Mathematics)

RARE 5.0 were lucky enough to have input into the STEM curriculum, and push the science and engi-neering sectors of STEM to look at waste to resource innovation. We increased the quality and quantity of job applicants for manufacturers and provided industry visits for over 3,000 students.

Hunter TAFERARE 5.0 is working with Hunter TAFE to develop the skillsets of our next generation. We have provided and will continue to provide annual apprenticeships for Cert 3 Mechatronic Maintenance, an area vital to efficiently running our production plant.

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 spread our message that technology can be produced with a positive impact on the earth. HunterNet provid-ed key networking opportunities and were catalysts for key partnerships that enabled national and global business investment in RARE 5.0.

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NIER & NUW Alliance

The NIER (Newcastle Institute for Energy & Re-sources) and NUW (Newcastle University, Univer-sity of NSW & University of Wollongong) alliance was the catalyst for most of what RARE 5.0 have 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 REE neodymium and praseodymium, and contin-ue to push the boundaries of producing synthetic rare earth elements which allows the technology we love to advance while maintaining our beautiful rare earth.

Advanced ManufacturersAdvanced Manufacturing Growth Centre

RARE 5.0 received a grant from AMGC during the development of the production plant to help scale up production of synthetic REE.

CSIRO

CSIRO came on board with RARE 5.0 in 2021 and worked alongside NIER & NUW alliance to make advancements in other synthetic REE’s. CSIRO spe-cialises in nanotechnology, biotechnology, and clean technology (e.g. solar energy, wind management and optimisation, energy efficiency and energy storage).

Hedweld

RARE 5.0 and Hedweld collaborated during the con-struction of their world first facility at the former BHP site. Hedweld understood what RARE 5.0 was trying 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 Newcastle Airport in 2035, as they wished to establish themselves in Newcastle. Space X approached RARE 5.0 to look at synthesising specific REE that would continue to benefit the space industry and potential to use these elements on other planets as the human race started to explore living further afield.

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.

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Environmental Considerations

Sustainable PracticesRARE 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.

Circular EconomyImagine 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.

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Environmental Considerations Humanitarian Aid Health Risks Associated with Mining REE

• Increased risk of heart attack

• A lung disease called pneumoconiosis in workers who inhale mine dust and metal fumes

• Rare condition called nephrogenic systemic 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

Green Collar FutureWe see blue collar workers transitioning to green collar. RARE 5.0 plays a key role in the move towards a low carbon and environmentally friendly economy. RARE 5.0 operate a highly efficient, automated and environmentally friendly manufacturing facility and will employ business professionals to focus on training and upskilling staff in greener technologies.

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.

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Research and Intellectual PropertyIntellectual PropertyIn 2017, RARE 5.0 purchased the Intellectual Property of initial research and PHD into synthesis of REE un-der an arrangement in which modest upfront payment was made to fund the research and a generous roy-alties scheme were guaranteed on commercialisation of the product. In a time where the University sector in Australia had been largely deregulated and required Universities to be financially self-sufficient, this deal lat-er placed NIER and NUW Alliance in a strong financial position, and enabled to build on strong foundations to become one of the world leaders in clean energy technology research.

Research HeadquartersIn 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.

Keeping our research in houseRARE 5.0 recognises that the highly technical process developed to allow synthetic production of REE’s is a key market advantage. By employing all key personnel directly and completing all research in house, RARE 5.0 could protect the IP during the research, testing and proving phases of business development. RARE 5.0 requires all employees, consultants, and collab-oration partners with access to IP and technology to execute confidentiality and non-compete agreements.

RARE 5.0 provides interested parties and potential partners with an understanding of the organisation, product successes and capabilities, without disclosing critical details of the processes developed to produce key products.

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OperationsWhy 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 In selecting the headquarters site, RARE 5.0 attempt-ed to find a site which would house all aspects of the business from administration through to research and production. This centralised approach would enable RARE 5.0 to be an agile business, able to quickly respond and capitalise on market demands. RARE 5.0 sought a site offering sufficient capacity for future expansion, with good access to road and rail transport and Newcastle Port. Located on part of the former BHP Site, a 52-hectare site known as the Intertrade Site fronting Industrial Drive was chosen.

Key Facilities• Purpose built research laboratory on site with pilot

plant – enables rapid prototyping and testing and continuous improvement

• Adequate space for stockpiling of input materials, export material (REEs), containers.

• Spare capacity for sub-letting, future expansion and/or diversification into advanced manufacturing

• Access to rail line and transport – existing line running along perimeter of site – and road links 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

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Minimum Viable Product (MVP)RARE 5.0 utilise their on-site research laboratory and pilot plant to test and prove new processes prior to entering full scale production. This allows for small scale tests that minimise cost and wastage, and allow for continual improvement of existing processes. The high-value nature of the REE’s produced by RARE 5.0 (in the order of 1000 times the value of export coal per tonne) and ability to export small quantities economi-cally all for economically viable production of relatively small volumes.

Manufacturing Value Chain While Australia had a rich history of manufacturing, it moved towards being a resource exporter during the 2000’s with little value add to its exports as steel-making and manufacturing was increasingly moved offshore. RARE 5.0 have an advantage in this space in that while the primary export remains as commod-ity, the highly technical process enabling production of REE from waste provides a substantial advantage over traditional mining techniques, both in cost and environmental impact.

Sourcing Raw Materials 70 million tonnes of e-waste was generated globally in 2017, and as it is not widely captured it often ends up in landfill. This unsustainable practice motivated RARE 5.0 to consider alternative uses. RARE 5.0 created and collaborated on many fronts with state, federal and international governments to help find a solution to the growing amount of e-waste, and secure a stable source for production.

Creating something from e-waste is one thing, but 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 partnership with Newcastle and surrounding local Councils, sufficient supply of waste was secured and prevented from entering landfill.

RARE 5.0’s facility is ideally located to receive incom-ing waste products via a range of sources including road, rail and sea and assisted in securing the e-waste required for REE production. The arrival of empty vessels into Newcastle Port was identified as a signif-icant opportunity for RARE 5.0 to receive e-waste for 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.

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Man and Machine Whilst capitalising on Industry 4.0, the foresight of Industry 5.0 has been front of mind for RARE 5.0. Industry 4.0 established a hyper-connectivity that went beyond the factory walls where production means interaction not only with the factory environment itself but along the value chain. However, Industry 4.0 had forgotten the human element. Industry 5.0 focuses on closer cooperation between man and machine, and systematic prevention and repurposing of waste. Further to physical waste, addressing impacts of social waste where humans are willing to work, but having no opportunity to apply the will.

RARE 5.0 capitalised on the unique skills of Newcastle and the Hunter, and supported by smart technology, humans and machines collaborate simultaneously on the factory floor as a ‘connected workforce’, This aligned to our people philosophy and the need to respond to increasing demand amongst customers for a higher degree of improvement and customisation. RARE 5.0 has created a platform for innovation that positively influences the region by creating new job op-portunities, attracting and retaining talent in a transition from a blue collar to green collar workforce.

Export and Distribution RARE 5.0 commenced manufacturing of Neodymium and Praseodymium in 2030. These materials have a relatively high density of 7001kg/m3 (Neodymium) and 6770kg/m3 (Praseodymium), which is approximately 10 times higher than a typical export coal. The han-dling characteristics and distribution considerations are also vastly different to a typical bulk solid. While Newcastle has a rich history in bulk material exports, an innovative approach was required by RARE 5.0 to develop distribution facilities for their REE production that considers the specific handling requirements of the product.

REE’s oxidise on contact with moisture or the atmo-sphere and this was a key consideration in the de-sign of the storage and distribution methods. Sealed, airtight containers were designed in a range of sizes to provide flexibility for distribution to a range of cus-tomers requiring varying quantities. The larger modular containers were designed to be compatible with stan-dard shipping container bases to allow maximum flexi-bility of transport options around the world by sea, rail, and road. The location of RARE 5.0 provides efficient 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.

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RARE 5.0 Business ModelStrategy RARE 5.0 harness a competitive advantage through a growth and differentiation strategy.

RARE 5.0’s Global Competitive Advantage

• A global demand for sustainable solutions to technology development

• Forefront of research, development and innovation in Newcastle, the Hunter and globally

• Safeguards to protect our Intellectual Property and a product difficult to replicate

• Efficiently utilise highly automated and advanced production methods

• Effectively utilise a workforce of machines and people in synergy with the environment

• Highly technical production process to manufacture high quality products

• Globally recognised as a leader in innovative, sustainable and environmentally friendly alternatives

• Strong global relationships with key distributors and customers

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, or wind turbines. Utilising low cost REE (traditionally a significant cost of production) would allow RARE 5.0 to capitalise on their market advantage and value-add manufacture.

StaffingOur People Philosophy

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 workforce toward green collar, with core focus on the integration between technology and the environment. Acknowledging the advancements in artificial intelli-gence and our vision of waste eradication (i.e. social waste), we maintain that an organisation is only as good as their tools and at RARE 5.0 we have a strong focus toward proactive maintenance. Our maintenance team are as strong as our research team, and just as valuable to the success of our company.

Our people objective is to provide opportunities to develop our workforce from within. RARE 5.0 have partnered with Hunter TAFE to deliver Certificate 3 Mechatronic Maintenance apprenticeships onsite, an area vital to efficiently running our production plant. We endeavour to attract and recruit our workforce straight out of secondary education, and offer oppor-tunities and flexibility to complete tertiary education in conjunction with their employment – apprenticeships, university placements, PhD research etc.

Our Leadership philosophy is one of

collaboration and engagement. Our people

love what they do, because it’s meaningful and

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.

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Our Team Shareholders Skillsets Board of Directors

Amber Stewart - Strategic Analyst & Relation-ship Management

Michael Cecil - Manufacturing Innovation

John Coomer - Enviroment & Logistics

Ricky McLean - Engineering & Materials Han-dling

Ellie Langford - Human Resources, Business Administration, Work Health & Safety

Chief Executive Office (Executive Director) - Ellie Langford

Advanced Manufacturing Industry Leader - Ian Hedley

Product Expert - Gavin Foster

Environmental Expert - Tim Browne

Research Expert - Alan Broadfoot

Newcastle Skills Expert - Rick Evans

Shareholders Organisational DepartmentsExecutive 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.

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Cash Flow Funding Sources

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.

Year/s Key Milestones Funding Sources

2017 Build relationship with NIER, upfront fee to commence research

NERA - National Energy Resources Australia (NERA), federal government grant - $3M

2019 Obtain IP from NIER and NUW Alliance Attached to a royalty scheme

2021 Continue research and development Advanced Manufacturing Growth Centre provide funding

2023 – 2028Build RARE 5.0 Headquarters (Pilot Plant and Research Facility)

Ongoing research and development

Strategic partners fund further research at the RARE 5.0 facility

2028 – 2030

Build RARE 5.0 state of the art Manufacturing plant and purchase equipment

Scale up of production plant from pilot plant volumes

Federal Government grant to build a production facility with the condition that global export would rise steadily over a 10-year period. Innovation to commercialisation grant of $1M.

Grant from AMGC during the development of the production plant to help scale up production of synthetic REE.

Debt finance - $150M

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Market Value and Revenue Streams

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2015 2020 2025 2030 2035 2040 2045 2050

Tonn

es P

er A

nnum

Year

World Market for Rare Earth Elements

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.

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ConclusionRARE 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.

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1. S3: A smart specialisation strategy for the Hunter Region - Regional Development Australia - Hunter, 2015

2. STEM+M Strategy 2025: A new future underpinned by Science, Technology, Engineering, Mathematics and Medicine University of Newcastle, 2016

3. Newcastle City Council (2017). Economic Development Strategy 2016 - 2019

4. Newcastle City Council (2013). Community Strategic Plan (Revised 2013)

5. Newcastle City Council (2017). Smart City Strategy (2017 - 2021)

6. Newcastle City Council (2017). Economic Development Strategy 2016 - 2019

7. Newcastle City Council (2017). Smart City Strategy (2017 - 2021)

8. USEPA (2012). Rare Earth Elements: A review of Production, Processing, Recycling, and Associated Environmental Issues. December 2012.

9. http://thediplomat.com/2017/08/revisiting-rare-earths-the-ongoing-efforts-to-challenge-chinas-monopoly/

10. http://geology.com/articles/rare-earth-elements/

11. https://www.nsw.gov.au/improving-nsw/premiers-priorities/

12. http://www.asiaoutlookmag.com/news/industry-50-a-new-era-of-modern-manufacturing

13. http://www.rareelementresources.com/rare-earth-elements#.WcWwFbpuKuU

14. https://www.thermofisher.com/blog/metals/rare-earth-element-recycling-hype-or-hope/

15. https://www.accessscience.com/content/rare-earth-elements-recycling-or-replacement/BR0113142

16. https://www.industry.nsw.gov.au/business-and-industry-in-nsw/innovation-and-research/boosting-business-innovation-program

17. https://www.theguardian.com/sustainable-business/blog/congo-child-labour-mobile-minerals

18. https://www.theguardian.com/sustainable-business/rare-earth-mining-china-social-environmental-costs

19. https://www.theguardian.com/environment/2012/aug/07/china-rare-earth-village-pollution

20. http://www.portofnewcastle.com.au/Resources/Documents/Port-of-Newcastle-Fact-Sheet---Mayfield-Site-Concept-Plan---For-web.pdf

21. https://www.newcastle.edu.au/research-and-innovation/innovation/three76hub

22. https://www.newcastle.edu.au/newsroom/featured-news/slingshot-and-uon-to-bring-new-accelerator-to-hunter-region

23. http://www.slingshotters.com/scaleups/

24. https://www.ato.gov.au/business/research-and-development-tax-incentive/eligibility/eligible-activities/

25. http://geology.com/articles/rare-earth-elements/

26. http://thediplomat.com/2017/08/revisiting-rare-earths-the-ongoing-efforts-to-challenge-chinas-monopoly/

27. https://www.lynascorp.com/Pages/How-Rare-Earths-Are-Used.aspx

28. http://www.australianrareearths.com/

29. http://www.abc.net.au/news/rural/2017-04-17/next-mining-boom-in-australia-is-tech-metals/8443172

30. http://www.ga.gov.au/data-pubs/data-and-publications-search/publications/aimr/rare-earths

31. http://www.ecommerce-digest.com/customer-channels.html

32. http://www.schneider-electric.com/b2b/en/insights/smart-factory-automation.jsp

33. https://www.thermofisher.com/blog/metals/rare-earth-element-recycling-hype-or-hope/

34. https://www.accessscience.com/content/rare-earth-elements-recycling-or-replacement/BR0113142

35. https://www.gizmodo.com.au/2016/05/why-are-we-so-bad-at-recycling-rare-metals-from-technology/

36. https://investorintel.com/sectors/technology-metals/technology-metals-intel/investorintel-rare-earths-monthly-july-2017/

37. http://www.theherald.com.au/story/4551653/last-piece-of-bhp-site-set-for-clean-up/#slide=33

38. https://www.forbes.com/sites/garyshapiro/2012/04/18/chinas-price-gouging-of-rare-earth-minerals-a-wake-up-call-to-the-world/#1d3e09983a42

References

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AppendicesAppendix 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.

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Appendix 2 – World Market for Rare Earth ElementsThe 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

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