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Growth, Trends, and Post-COVID-19 Forecasts

The rare earth elements market, including its segmentation based on elements (cerium, neodymium, lanthanum, dysprosium, terbium, yttrium, scandium, and others), applications (catalysts, ceramics, phosphors, glass and polishing, metallurgy, magnets, and others), and geography (Asia-Pacific, North America, Europe, South America, Middle East, and Africa), is experiencing growth, trends, and Post-COVID-19 forecasts. The report offers volume (tonnes) market size forecasts for all these segments.


rare earth sample

Market Overview:

The rare earth elements market was estimated at 161,354.65 tonnes in 2022, with a forecasted compound annual growth rate (CAGR) of over 4% during the period 2022-2027.

The market growth drivers include strong demand from emerging economies and the green technology's reliance on rare earth elements.

However, inconsistent supply of rare earth elements can pose a challenge to market growth.

The increasing use of scandium in aerospace applications is expected to create opportunities for the market during the forecast period.

The Asia-Pacific region dominates the global market due to the growing production of rare earth metals and increasing demand from industries such as consumer electronics.


Scope of the Report:

Rare earth elements are utilized in various applications such as speakers, telescope lenses, studio lighting, and computer hard drives to make them smaller and more efficient. They are also used in screens and displays due to their ability to produce different colors. Rare earth elements generally exhibit high electrical conductivity and are naturally found in minerals. They are used in the manufacturing of the most powerful magnets currently available. The rare earth elements market is segmented based on elements, applications, and geography. The elements include cerium, neodymium, lanthanum, dysprosium, terbium, yttrium, scandium, and other elements. Applications encompass catalysts, ceramics, phosphors, glass and polishing, metallurgy, magnets, and other applications. The report also covers market size and forecasts for rare earth elements in 15 countries across major regions. Market sizing and forecasts have been done based on volume (tonnes).


Increased Magnet Demand: Magnets are one of the primary applications of rare earth elements. They find wide usage in industries such as electronics, automotive, energy production, and the medical field.

Magnets are used in computer hard drives, microwave tubes, anti-lock brakes, automotive components, disk drive motors, frictionless bearings, energy production, magnetic refrigeration, microphones and speakers, communication systems, and MRI devices.


Sectors like automotive, electronics, and healthcare have witnessed significant innovation and development, driving the demand for magnets in these industries.

In 2021, approximately 85% of automobile manufacturers used permanent magnet motors incorporating neodymium, and the demand for rare earths in the automotive sector is expected to increase by 25% in 2022.


Magnets used in electric vehicles and wind turbines include neodymium, praseodymium, and dysprosium, while samarium and cobalt are potential substitutes. This is expected to further stimulate the market in the future.


Additionally, magnets are used in medical equipment such as MRI machines, pacemakers, sleep apnea devices, and insulin pumps. The healthcare sector has benefited from massive investments, especially in regions like the Asia-Pacific, the Middle East, and Africa.

Therefore, all these trends should significantly boost the demand for magnets, leading to an increase in the demand for rare earth elements in the coming years.


The Asia-Pacific region is expected to dominate the market:

The Asia-Pacific region holds a significant market share. With increased investments in the healthcare sector and growing demand for ceramics, the consumption of rare earth elements is expected to increase substantially in the region.


According to OICA, the total number of motor vehicles produced in China and India in 2019 was 25.75 million units and 4.52 million units, respectively. However, in 2020, this production decreased by about 2% due to the impact of the COVID-19 pandemic. Nevertheless, during the first nine months of 2021, vehicle production in China reached 18,242,588 units, registering an 8% growth compared to the same period in 2020.


Currently, a significant portion of the global supply of high-value rare earth elements comes from China, making the global rare earth elements market sensitive to fluctuations in the Chinese manufacturing sector. In 2020, China accounted for 58% of the world's rare earth elements production, according to data from the US Geological Survey.


The Asia-Pacific region has been the world's electronic production base, with many companies investing in countries such as India, Vietnam, and Japan. The COVID-19 pandemic revealed supply chain issues with China, prompting some companies to diversify their sources of rare earth elements supply.


Furthermore, the growing demand for ceramics is a key factor in the Asia-Pacific region. The aerospace and defense, energy, healthcare, and consumer goods industries are the primary drivers of the increasing demand for ceramics in the region.


Therefore, these market trends, combined with the dependency on rare earth elements supply from China, are expected to have a significant impact on the rare earth elements market in the years to come.


Competitive Landscape:

The rare earth elements market is partially fragmented, with numerous players holding relatively small market shares that do not have a significant impact on market dynamics. Among the key market players, we can find Lynas Rare Earths Ltd, Aluminium Corp of China, Iluka Resources Limited, and Arafura Resources Limited, to name a few.


Lynas Rare Earths Ltd is one of the leading global producers of rare earth elements outside of China. The company is involved in the extraction and refining of rare earth elements and supplies value-added products to various industrial sectors.

Aluminium Corp of China, also known as Chalco, is an integrated aluminum and rare earth resources company. It is one of the major producers and suppliers of rare earth elements in China.


Iluka Resources Limited is an Australian mining company that extracts mineral sands, including rare earth elements. The company is also involved in the refining and marketing of rare earth elements.


Arafura Resources Limited is an Australian mining company specializing in the exploration and development of rare earth deposits. It is focused on the development of its Nolans rare earth project located in the Northern Territory of Australia.

These key players in the rare earth elements market play a crucial role in supplying these essential materials to various industries around the world.


In summary, the increasing demand for magnets in sectors such as electronics, automotive, energy production, and medical is driving the demand for rare earth elements. Rare earth-based magnets, such as neodymium, praseodymium, dysprosium, and others, are extensively used in applications like computer hard drives, microwave power tubes, vehicle motors, medical equipment, and many others.


The automotive industry represents a significant segment of magnet demand. In 2021, approximately 85% of automakers were using permanent magnet motors incorporating rare earth elements, mainly neodymium. A 25% increase in rare earth demand in the automotive sector is projected for 2022.


Magnets are also essential for electric vehicles and wind turbines, where neodymium, praseodymium, and dysprosium are widely used. The expected growth in these sectors is expected to further stimulate the demand for rare earth elements.


Simultaneously, the healthcare industry is experiencing increasing demand for magnets in equipment such as MRI machines, pacemakers, sleep apnea devices, and insulin pumps. Significant investments in the healthcare sector in the Asia-Pacific, Middle East, and Africa regions contribute to this trend. Regarding geography, the Asia-Pacific region dominates the global rare earth elements market. With increased investments in the healthcare sector and growing demand for ceramics from various industries, the consumption of rare earth elements is expected to significantly rise in the region. However, the dependence on rare earth elements supply from China presents a potential challenge for the global market. Fluctuations in the Chinese manufacturing sector can have a significant impact on the global supply of rare earth elements. Therefore, diversifying sources of supply and reducing this dependence become key concerns for industries that utilize rare earth elements.


rare earth ample

In conclusion, the growth of magnet demand in key sectors and the dependence on rare earth elements supply from China will significantly impact the global rare earth elements market in the coming years. Key market players, such as Lynas Rare Earths Ltd, Aluminium Corp of China, Iluka Resources Limited, and Arafura Resources Limited, play a crucial role in the supply of these materials and in shaping the dynamics of the rare earth elements market.


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