Rare Earth Metals Market
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:
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
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.
| 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: |
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| Segments covered: |
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| 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. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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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
Key Takeaways of the Graph:
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
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:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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