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 such as permanent magnets, pigment, metallurgy, phosphors, metal alloys, catalysts, glass, and ceramics.
Global rare earth metals market was valued at US$ 4710.8 Million in 2021 in terms of revenue, exhibiting a CAGR of 6.24 % during the forecast period (2022 to 2030).
Growing demand for renewable energy around the globe is a prime factor fueling the market growth. The renewable energy industry is one of the major industries 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 wind turbines.
The rising demand for hybrid and electric vehicles is projected to foster the rare earth metal 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 rare earth metal market growth of rare earth metals.
Industries including automotive and electronics were significantly impacted by the COVID19 pandemic. The pandemic has inflicted damage on the production of rare earth metals and their supply, as mining activities were put on hold to mitigate the spread of the virus. Companies operating in the metal industry were unable to obtain rare earth minerals to produce alloys. The decline in the production rates of permanent magnets affected the manufacturing of vehicles and consumer electronic products. However, the demand for magnets from ventilator manufacturers decelerated the implications of COVID-19 on the market.
Figure 1. Global Rare Earth Metals Market Value (US$ Mn), by Region, 2021
Industries such as renewable energy, electronics, automotive, and defense are key end users of 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 rare earth metal market growth of the rare earth metal over the forecast period.
|Base Year:||2022||Market Size in 2021:||US$ 4710.8 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||6.24 %||Forecast Period:||2022-2030|
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.
|Restraints & Challenges:||
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 glass. It is majorly used for the thinning and smoothening the inner surface of 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 manufacturers 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 U.S. partnered 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, 2021
Major players operating in the global rare earth metals market 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.
Rare earth metals, also known as 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, 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.
Growing demand for renewable source of energy is expected to foster the rare earth metals market growth. According to the center for climate change and energy solutions, renewables made up 26.2% of global electricity generation in 2018 and is expected to rise to 45% by 2040. will likely come from solar, wind, and hydropower. Rapid growth in end-use industries is also expected to stimulate the market growth.
On the other hand, fluctuating cost of raw materials is expected to hinder the market growth.
Key features of the study: