NEW YORK, Dec. 22, 2022 (GLOBE NEWSWIRE) -- IndexBox recently published a new report on the global rare earth metal market. Here are some of the most interesting takeaways.
The Global Rare Earth Metal Market
The global rare earth metal market size was valued at USD 11.3 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.3% over the next eight years to USD 14.7 billion by 2030. The market for rare earth metals is rising due to the increasing demand from industries and the limited supply.
The major factors driving the growth of the rare earth metal market are the increasing demand from the automotive industry and the growing electric vehicles market. The increasing demand for rare earth metals such as neodymium, dysprosium, and praseodymium from various industries such as renewable energy, consumer electronics, defense, and healthcare is also expected to drive the growth of the rare earth metal market.
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The primary use of rare earth metals is in the production of magnets. They are also used in a variety of other applications, such as in catalysts, polishing compounds, glassmaking, and ceramics. The increasing demand for these metals from various industries is expected to drive the growth of the rare earth metal market.
There are a number of factors that will contribute to the continued growth of the rare earth metal market. First, the global economy is expected to continue to grow, which will increase the demand for these metals. Second, new technologies are being developed all the time that require rare earth metals in order to function. For example, many renewable energy technologies rely on rare earth metals in their construction.
Third, there is a increasing focus on environmental sustainability, which is likely to lead to greater use of rare earth metals in a variety of applications. For example, rare earth metals can be used in catalytic converters, which help to reduce air pollution. Finally, as countries become increasingly militarized, there is likely to be an increased demand for rare earth metals for use in military technologies such as missiles and aircraft carriers.
All of these factors point to a bright future for the rare earth metal market. With the world’s population projected to continue to grow and new technologies being developed all the time, the demand for these essential materials will only become greater.
However, there are some challenges that may impede the growth of the market. These include the high cost of production and environmental concerns associated with mining and processing rare earth metals. Nevertheless, with the growing demand for these metals, companies are expected to invest more in research and development activities to overcome these challenges.
What are Rare Earth Metals?
Rare earth metals are a set of 17 chemical elements in the periodic table, specifically the 15 lanthanides plus scandium and yttrium. Scandium and yttrium are considered rare earth elements because they tend to occur in the same ore deposits as the lanthanides and share similar chemical properties.
The term "rare earth" is actually a misnomer; these elements are not particularly rare in Earth's crust. However, they are often dispersed through small pockets and veins, making them difficult to mine. In addition, most rare earth metals must be purified from complex ores, making them expensive to produce.
Despite their name, rare earth metals have a wide range of applications in many industries. They are used in everything from cell phones and computers to wind turbines and hybrid cars. The unique properties of rare earth metals make them essential ingredients in a variety of high-tech products.
The United States is home to some of the world’s largest deposits of rare earth metals, but mining and processing these materials is complex and expensive. The last U.S. rare earth metals mine closed in 2015, and most of the country’s rare earth metals are imported from China.
On the basis of type, the rare earth metals market is classified into cerium, dysprosium, erbium, europium, gadolinium, holmium, lanthanum, lutetium, neodymium, praseodymium, promethium, samarium, scandium, terbium, thulium, ytterbium.
Rare earth metals are used in a wide variety of applications, including:
- Magnets: Rare earth metals are used to make extremely powerful magnets. For example, neodymium magnets are often used in electric vehicles and wind turbines.
- Catalysts: Rare earth metals can be used as catalysts, which helps to speed up chemical reactions. For example, cerium oxide is often used as a catalyst for diesel engines.
- Glass: Adding small amounts of certain rare earth metals to glass can improve its clarity or change its color. For example, adding europium to glass makes it glow red under ultraviolet light.
- Lasers: Rare earth metals are essential for making many types of lasers. For example, erbium-doped fiber lasers are used in surgery and fiber-optic communications.
Rare earth metals are used in a wide variety of industries. Here is a look at some of the key industries that consume rare earth metals:
- Electronics: Rare earth metals are used in a variety of electronic devices, including mobile phones, computers, flat-screen TVs, and more. They are especially important for the miniaturization of electronic components.
- Automotive: Rare earth metals are used in a number of automotive applications, including hybrid and electric vehicles, catalytic converters, and more. They are critical for the development of fuel-efficient and emissions-reducing technologies.
- Renewable energy: Rare earth metals are used in many renewable energy technologies, including wind turbines, solar panels, and more. They are essential for the development of clean energy solutions.
- Defense: Rare earth metals are used in a variety of defense applications, including missile guidance systems, radar systems, and more. They play a crucial role in ensuring the safety and security of nations around the world.
Rare Earth Metal Market Restrictions
The rare earth metal market has been subject to a number of restrictions in recent years, as governments seek to secure supplies of these metals for their own industries. In China, which is currently the world’s largest producer of rare earth metals, the government has imposed a number of restrictions on exports of these metals. These export quotas have been tightened in recent years, and Chinese producers have been required to sell their rare earth metals to domestic customers at below-market prices.
As a result of these restrictions, the global market for rare earth metals has become increasingly tight. Prices for these metals have soared in recent years, and there is a risk that further price increases could damage the competitiveness of industries that use these metals.
The European Union has also introduced restrictions on imports of rare earth metals from China, in an attempt to protect European producers from Chinese competition. These import duties have been challenged by China at the World Trade Organization, but they remain in place pending a ruling from that body.
Rare Earth Metal Market Opportunities
As the world progresses, the need for rare earth metals is increasing. With new technology comes new opportunities for companies to get involved in the rare earth metal market. Here are a few examples of market opportunities for those interested in this industry:
- Technology-focused companies can develop new uses for rare earth metals in order to make their products more efficient or environmentally friendly.
- Manufacturers can use rare earth metals to create stronger, lighter, and more heat-resistant materials.
- Mining companies can explore new deposits of rare earth metals to keep up with demand.
- Refining companies can invest in new technologies to improve their process and increase their output.
About IndexBox
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Companies Mentioned in the Report
Lynas Corporation, Molycorp, Arafura Resources, China Minmetals Rare Earth Co., Ltd., Iluka Resources Limited, Great Western Minerals Group Ltd., Avalon Rare Metals Inc., Quest Rare Minerals Ltd.
Sources
World - Rare Earth Metal - Market Analysis, Forecast, Size, Trends and Insights
EU - Rare Earth Metal - Market Analysis, Forecast, Size, Trends and Insights
Asia - Rare Earth Metal - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Rare Earth Metal - Market Analysis, Forecast, Size, Trends and Insights
