Count independent routes, not invoices
Two purchase orders can still depend on one separator, alloy source or qualified production line. Start by identifying the failure you intend to reduce: a commercial dispute, a factory outage, a regional restriction or a feedstock interruption. Independence at one level does not establish independence at another.
Lynas describes Kalgoorlie processing Mt Weld concentrate into material for further treatment in Malaysia. This illustrates why separate locations along a chain should not be counted as independent raw-material sources.
Compare the routes stage by stage
Place the two candidate suppliers side by side and record the known source at each relevant stage. Mark a shared site explicitly. Mark an undisclosed site separately: absence of a disclosed link is not evidence of independence. Include whether the alternative route is qualified for the material you need, rather than merely technically conceivable.
Then ask whether the proposed split improves the defined failure case. A second finished-magnet factory may protect against a local production issue while leaving oxide dependence unchanged. That is still a benefit, but describe the benefit precisely.
Illustrative procurement decision
A buyer splits orders equally between two magnet factories that both use the same alloy supplier. The split may reduce finished-component manufacturing exposure, but it does not halve exposure to an alloy interruption. Before calling the arrangement resilient, ask about qualified substitute alloy, inventory location and each factory's ability to use it.
Test the level of independence
| Shared element | Question raised |
|---|---|
| Same parent company | Could allocation or commercial decisions affect both? |
| Same upstream plant | Would the defined outage reach both routes? |
| Different disclosed plants | Are the products and routes qualified and substitutable? |
Your review checklist
- Define the failure case before measuring diversification.
- Compare mine, separation, alloy and magnet stages where relevant.
- Distinguish unknown routes from independent routes.
- Validate backup qualification and practical switching constraints.
Investigate with Oreline
Trace disclosed routes and ownership in Oreline before treating two suppliers as independent. Its network and source evidence help your team identify the shared operation that deserves a targeted continuity question.
Follow the evidence through the supply chain.
Explore Oreline’s guided investigations. No account required.
Explore the sandbox →Frequently asked questions
Can dual sourcing still help if the oxide source is shared?
Yes. It may reduce exposure to downstream manufacturing or commercial problems. Be explicit that the upstream dependency remains.
Should unknown feedstock count as diversified?
No. Treat it as unresolved and ask for evidence. Scoring it as either fully independent or fully shared would overstate what is known.