by The Global Rare Earth Metals Market is estimated to be valued at US$ 5317.05 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 Overview:
Rare earth metals play an important role in producing several electronic and renewable energy products. They are indispensable in producing products like mobile phones, electric vehicles, wind turbines etc. due to their magnetic and electro-chemical properties.
Market key trends:
Neodymium dominance -Neodymium segment accounts for the largest share in the global rare earth metals market due to its wide applications in the manufacturing of permanent magnets used in electric vehicles. According to market estimates, neodymium based magnets production is expected to grow significantly during the forecast period with the rising adoption of EVs and renewable energy projects across the globe. This rising demand for neodymium will drive the overall growth of rare earth metals market.
SWOT Analysis
Strength: Rare earth metals have wide range of industrial applications ranging from electronics to defense making the market less cyclical. They are crucial inputs for manufacturing permanent magnets used in electric vehicles, wind turbines etc driving demand.
Weakness: China dominates the global production and exports of rare earth metals. Other countries are highly dependent on China for supplies exposing them to supply risks. Exploration and mining of rare earth metals is complex and capital intensive.
Opportunity: Increasing demand for rare earth metals from green technologies like electric vehicles, wind turbines as countries focus on decarbonization and achieving climate targets provides big opportunities. Countries are focusing on developing alternative supply chains to reduce dependence on China.
Threats: Trade tensions and geopolitical issues can disrupt rare earth metal supplies. Substitution threat from alternative materials holds risk for certain rare earth metals demand. Stringent environmental regulations increase costs of rare earth mining and processing.
Key Takeaways
The Global Rare Earth Metals Market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing demand for electric vehicles and renewable energy technologies. Rare earth metals are crucial components in batteries and magnets used in these green technologies.
Regional analysis: Asia Pacific dominated the global rare earth metals market in 2023, accounting for over 50% share. China accounted for majority share in the region due to its dominance in rare earth metals production. North America is projected to be the fastest growing market during the forecast period led by increasing rare earth metals demand in the United States for manufacturing electric vehicles, consumer electronics and wind turbines.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
