Rare earth metals refer to a group of seventeen chemical elements that include lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, yttrium, and scandium. These metals play an important role in manufacturing various electronic gadgets and components such as mobile phones, computers, LED lights, rechargeable batteries, and electric vehicles. The growing usage of electronics and preference for electric vehicles have increased the demand for rare earth metals in recent years.
The global Rare Earth Metals Market is estimated to be valued at US$ 4710.8 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for rare earth metals is primarily driven by the electronics and electric vehicles industry. Rare earth metals such as neodymium, praseodymium, and dysprosium are crucial components of electronics products including smartphones, laptops, and computer hard disks. They are used extensively in manufacturing permanent magnets required for micro-motors and speakers. Additionally, rare earth metals play a vital role in manufacturing rechargeable batteries and electric motors used in electric vehicles. With more people shifting from gasoline vehicles to electric vehicles in recent years due to rising environmental concerns, the demand for rare earth metals from the automotive industry is growing rapidly. This rising demand from the electronics and electric vehicles industry will be a key growth driver for the rare earth metals market over the forecast period.
SWOT Analysis
- Strength: Rare earth metals have a wide range of applications in diverse industries such as energy, defense, electronics, automobiles, etc. owing to their unique magnetic and electrochemical properties. This leads to consistent demand.
- Weakness: China dominates the global supply of rare earth metals leading to supply chain risks. Environmental regulations related to rare earth mining and processing are stringent.
- Opportunity: Growth of end-use industries like electric vehicles and electronics will boost rare earth metals demand going forward. Countries are looking to diversify their rare earth supply away from China to address security concerns.
- Threats: Volatility in raw material prices can impact project economics. Substitutes of rare earth metals may also emerge with technological advancements.
Key Takeaways
The global rare earth metals market is expected to witness high growth over the forecast period supported by expanding applications. The market size is projected to grow from US$ 4710.8 Mn in 2023 to over US$ 7890 Mn by 2030, registering a CAGR of 6.2%.
Regional analysis
The Asia Pacific region currently dominates the global rare earth metals market with China accounting for over 80% of global production. Countries like India and Australia are also emerging as key producers to reduce import dependence on China. North America and Europe are major importers of rare earth metals with demand driven by the large automotive and electronics industries in these regions.
Key players
Key players operating in the rare earth metals market are 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. The market is witnessing capacity expansions and investments in mining projects by these major companies to gain market share.
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