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Definition of Market/Industry:

Cerium, praseodymium, neodymium, yttrium, lanthanum, and dysprosium are some of the rare earth metals. These metals are a class of elements that are found together in the earth's crust. They are widely used across a wide range of applications this includes permanent magnets, pigment, metallurgy, phosphors, metal alloys, catalysts, glass, and ceramics.

The global rare earth metals market is estimated to be valued at US$ 4710.80 million in 2021 and is expected to exhibit a CAGR of 8.50 % over the forecast period (2021-2028).

Recent Developments:

  1. 19th December 2019, according to a news in the Indian Express the united states army plans to fund the construction of rare earth processing facility to secure the domestic supply of minerals that are used to make military weapon & electronics ,this will be the first financial investment by the US military into commercial –scale rare earth production .
  2. 17th April 2021,The United States has made previous attempts to reemerage as a dominant player in a rare earth supply chain that is responsible for some of the most important material involved in electric vehicle production, battery Making, renewable energy system & technology manufacturing .
  3. 1st march 2021,Kvanefield-greenland minerals ltd seeking government approval to build $505 million mine complex with 37 year life , hopes to start construction in 2022, Targets output of 5692 tonnes a year of Neodymium –praseodymium oxide ,used for permanent magnets in electric vehicles and wind turbines.

The Asia Pacific Region except japan held dominant position in the global rare earth metals market in 2020, accounting for 72.6% share in terms of value, followed by Japan and North America, respectively.

Figure 1. Global Rare Earth Metals Market Value (US$ Mn), by Region, 2020

Rare Earth Metals  | Coherent Market Insights

Drivers:

The growing demand for renewable energy around the globe is a prime factor fueling market growth. The renewable energy industry is one of the major industry that consumes rare earth metals and the products. For instance, permanent magnets produced from rare earth metals such as neodymium and dysprosium are majorly used in the manufacturing of the wind turbines.

The rising demand for hybrid and electric vehicles is projected to foster the market growth of rare earth metals. The electric vehicles industry is another key end-use industry for rare earth metals. They find applications in the manufacturing of batteries that power these electric vehicles. In the case of hybrid vehicles, magnets developed from rare earth metals are key components of electric motors that propel these vehicles. Thus, robust growth in the EV industry is propelling the market growth of rare earth metals.

Market Opportunities

The increasing use of rare earth metals in the automotive industry is expected to serve major growth opportunities. They are used in the creation of magnets & catalysts for the automotive industry. Increasing demand for automobiles is expected to foster market growth. Moreover, the growing demand for cerium and lanthanum catalysts from the petroleum refining industry are again expected to propel the market growth. These rare earth metals are used to convert crude oil into gasoline.

The growing demand for Neo magnets from transportation and power generation industry is expected to offer potential growth opportunities. Dysprosium is majorly used as an alloying agent in the creation of neodymium?iron?boron (Neo) permanent magnets. These magnets are also gaining huge demand from aerospace, medical, and defense industry. Thus growing demand for Dysprosium is fueling demand for neodymium?iron?boron (Neo) permanent magnets which in turn augmenting the market growth of the rare earth metals. 

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Rare Earth Metals Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 4710.80 Mn
Historical Data for: 2017 to 2019 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 8.50% 2028 Value Projection: US$ 8667.67 Mn
Geographies covered:
  • Regions: North America, Asia Pacific except Japan, Japan ,Latin America ,Western Europe, Eastern Europe, Middle East Africa
Segments covered:
  • By Metals: Neodymium, Yttrium, Dysprosium, Terbium, Europium, Cerium, Lanthanum
  • By Application: Catalysts, Permanent Magnets, Metallurgy & Alloys, Polishing
Companies covered:

China Northern Rare Earth (Group) High-Tech Co., Ltd, RISING NONFERROUS METALS CO., LTD, China Minmetals Rare Earth Co., Ltd, Aluminum Corporation of China Limited, Lynas Corporation, Ltd., Beijing Zhongke Sanhuan High-tech Co. Ltd., Jiangxi Tungsten Industry Group Co. Ltd., Arafura Resources Ltd., and Alkane Resources Ltd.

Growth Drivers:
  • Increasing demand for renewable source of energy
  • Rise in the Electronic sector and growing demand in the Permanent Magnets 
Restraints & Challenges:
  • Fluctuating cost of raw material

Market Trends

The glass polishing segment is emerging in the market due to the growing production of glass around the globe. Cerium oxide is widely used in the polishing and surface smoothening of the glass. It is majorly used for the thinning and smoothening the inner surface of the glass which leads to a reduction in the weight of the screen. These lightweight glasses are widely used in the creation of LCD TVs and other consumer electronic products. Thus increasing production of consumer electronic goods are projected to propel the market growth.

Growing strategic partnership and agreement among key manufacturer is one of the key trends in the market. This ongoing trend will favor market growth over the forecast timeframe. For instance, in January 2020, Australia and the US have partnered together to find news sources of critical minerals, including rare earth minerals, and reduce their reliance on China which currently dominates supply and demand.

Figure 2. Global Rare Earth Metals Market Share, By Metals, 2020

Rare Earth Metals  | Coherent Market Insights

Key Takeaways of the Graph:

  • The Neodymium Metal from the metal segment held dominant position in the market and accounted for 39.7% share in the global rare earth metals market in 2020. The segment is expected to reach US$ 3592.3 million in 2028.

Lynus rare earth is the only major integrated producer outside china. The company produced 5461t of Neodymium-praseodymium permanent magnets in the financial year ended 30 June ,up from 4656t a year earlier demand for electric vehicle is accelerating & along with the demand for NdFeB magnets ,which offers the most efficient way to converting electrical energy into motion

Market Restraints

Industries such as renewable energy, electronics industry, automotive, and defense are key end-user of the rare earth metals. The growth of all these industries are influenced by overall economic growth and other economic factors. Over the past few years, the global economy has experienced a relatively subdued growth due to various economic factors. This is expected to hamper the market growth.

Fluctuating costs of rare earth metals is another major factor hampering the demand. This is turn is expected to restrict the market growth of the rare earth metal over the forecast period.

Competitive Section:

Company Names 

  1. China Northern Rare Earth (Group) High-Tech Co., Ltd
  2. RISING NONFERROUS METALS CO., LTD
  3. China Minmetals Rare Earth Co., Ltd
  4. Aluminum Corporation of China Limited
  5. Lynas Corporation, Ltd.
  6. Beijing Zhongke Sanhuan High-tech Co. Ltd.
  7. Jiangxi Tungsten Industry Group Co. Ltd.
  8. Arafura Resources Ltd.
  9. Alkane Resources Ltd.

The rare earth metals, also known as the rare earth metals or rare-earths, are a group of 17 nearly indistinguishable silvery white, nearly-matte heavy alloys. These metals, which come from the Earth's crust and are extracted through several chemical processes, are used in the electronics industry, in defense applications and in various other industries. The rare earth metals that are extracted are generally not prepared in the mining process, meaning that the alloys and minerals from the earth come to the market with great deformity and are often found in a very limited range of different shapes.

Market Dynamics:

Growing demand for renewable source of energy is expected to foster growth of the rare earth metals market. According to the center for climate change and energy solutions, renewables made up 26.2 percent of global electricity generation in 2018. That’s expected to rise to 45 percent by 2040. Most of the increase will likely come from solar, wind, and hydropower. Rapid growth in the end-user industries is again expected to stimulate growth of the market.

On the other hand, fluctuating cost of raw materials is expected to hinder growth of the market.

Key features of the study:

  • This report provides in-depth analysis of the rare earth metals market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global rare earth metals market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include China Northern Rare Earth (Group) High-Tech Co., Ltd, RISING NONFERROUS METALS CO., LTD, China Minmetals Rare Earth Co., Ltd, Aluminum Corporation of China Limited, Lynas Corporation, Ltd., Beijing Zhongke Sanhuan High-tech Co. Ltd., Jiangxi Tungsten Industry Group Co. Ltd., Arafura Resources Ltd., and Alkane Resources Ltd.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global rare earth metals market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global rare earth metals market

Detailed Segmentation:

  • Global Rare Earth Metal Market, By Metals:
    • Neodymium
    • yttrium
    • Dysprosium
    • Terbium
    • Europium
    • Cerium
    • Lanthanum
  • Global Rare Earth Metal Market, By Application:
    • Catalysts
    • Permanent Magnets
    • Metallurgy & Alloy
    • Polishing
  • Global Rare Earth Metal Market,, By Region:
    • North America
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries:
        • U.S.
        • Canada
    • Latin America
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries
        • Brazil
        • Mexico
        • Rest of Latin America
    • Asia Pacific except Japan
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries
        • China
        • India
        • ASIAN
        • Rest of Asia Pacific except japan
    • Japan
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
    • Western Europe
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries
        • EU5
        • BENELUX
        • Nordic
    • Eastern Europe
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries
        • Russia
        • Rest of Eastern Europe
    • Middle East Africa
      • By Metals
        • Neodymium
        • yttrium
        • Dysprosium
        • Terbium
        • Europium
        • Cerium
        • Lanthanum
      • By Application
        • Catalysts
        • Permanent Magnets
        • Metallurgy & Alloy
        • Polishing
      • By Countries
        • GCC
        • South Africa
        • Rest of middle east Africa
  • Company Profiles
    • China Northern Rare Earth (Group) High-Tech Co., Ltd
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • RISING NONFERROUS METALS CO., LTD
    • China Minmetals Rare Earth Co., Ltd
    • Aluminum Corporation of China Limited
    • Lynas Corporation, Ltd.
    • Beijing Zhongke Sanhuan High-tech Co. Ltd.
    • Jiangxi Tungsten Industry Group Co. Ltd.
    • Arafura Resources Ltd.
    • Alkane Resources Ltd.

 “*” marked represents similar segmentation in other categories in the respective section

FAQ

Frequently Asked Questions

The global rare earth metals market size is estimated to be valued at US$ 4710.80 Million in 2021 and is expected to exhibit a CAGR of 8.50% between 2021 and 2028.
Growing demand for renewable source of energy is fuelling growth of the market.
The Neodymium metal segment is the leading component metal segment in the market.
Fluctuating cost of raw material and slowdown of economy due to Covid-19 are expected to hinder growth of the market.
Major players operating in the market include, China Northern Rare Earth (Group) High-Tech Co., Ltd, RISING NONFERROUS METALS CO., LTD, China Minmetals Rare Earth Co., Ltd, Aluminium Corporation of China Limited, Lynas Corporation, Ltd., Beijing Zhongke Sanhuan High-tech Co. Ltd., Jiangxi Tungsten Industry Group Co. Ltd., Arafura Resources Ltd., and Alkane Resources Ltd.
Asia Pacific region except japan is expected to hold dominant position in the market over the forecast period. The growth of the market in the region is driven by The news given in the Indian Express stating that, In china the mining of the rare earth minerals began in 1950s but it remained a cottage industry, until a chemist Xu Guangxian found a way to separate the rare earth elements, China has the huge amount of rare earth element deposits account of 80% of the identified global reserve due to which this region is the dominating sector of the world.
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