The global rare earth elements market size is projected to experience a period of sustained growth owing to the steadily rising adoption of electric vehicles (EVs) around the world, observes Fortune Business Insights™ in its report, titled “Rare Earth Elements Market Size, Share & Industry Analysis, By Type (Lanthanum,Cerium, Prasaedynium, Samaerium, Europium, Other), By Application (Magnets, Metals, Alloys, Polishing agents, Additives, Catalysts, Phosphors, Other) and Regional Forecast, 2021-2028”. Data from the International Energy Agency (IEA) show that in 2019, electric car sales reached 2.1 million, representing a 6% increase from 2018 levels and taking the global stock of electric cars to 7.2 million. Nearly 47% of the electric cars worldwide are in China, the IEA highlights. Rare earth elements, mainly Dysprosium and Neodymium, are utilized to power EV engines. Neodymium, for instance, is widely adopted to make magnets for EVs owing to its high coercive strength and stable flux density, both of which provide the necessary power to the EV to move. Since neo-magnets are instrumental for the proper functioning of EVs, growing demand for these vehicles will inevitably stoke the adoption of rare earths in the next few years.
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What Does the Report Offer?
- In-depth analysis of the major market drivers, trends, and opportunities;
- Careful study of the roadblocks facing the market;
- Tangible insights into the various market segments; and
- Detailed examination of the competitive landscape & regional dynamics of the market.
Increasing Production of Rare Earths outside China to Augment Market Potential
One of the factors that potentially accelerate the rare earth elements market growth in the coming years is the increasing production of these elements in countries other than China. In the US, for example, rare earth production rose from 18,000 MT in 2018 to 26,000 MT in 2019, according to the US Geological Survey (USGS), with the main supply of these elements from the Mountain Pass mine in California. Australia, to take another example, houses the sixth largest-known rare earth reserve in the world in Mouth Weld in Western Australia. The USGS notes that rare earth element production in the country has risen impressively in the past few years, standing at 21,000 MT in 2019. Another key country is India, which, according to the USGS, is producing far below its potential. Being home to 35% of the total global beach sand mineral deposits, the USGS believes that India can become a significant player in the rare earths industry.
Abundant Reserves in China & Australia to Propel the Asia Pacific Market
Among regions, Asia Pacific is expected to dominate the rare earth elements market share in the near future on account of the abundant availability of these elements in China, Japan, and Australia. Moreover, with countries such as India and Myanmar investing in rare earth mining projects, the scope of the market in this region is set to widen in the upcoming years.
The market in North America is set enjoy lucrative prospects owing to the booming demand for electric cars in the region. In Europe, on the other hand, the main growth driver will be the region’s gradual shift towards renewables and clean energy production technologies.
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Formulation of Supportive Policies to Encourage Investments by Key Players
Governments in several countries are formulating policies favoring and incentivizing investments in rare earth exploration activities. Such policies are encouraging key players to develop innovative technologies and equipment to efficiently extract and utilize rare earth elements, which have proven to be highly beneficial in the automotive, hydrocarbon, and energy industries.
- September 2020: USA Rare Earth declared its wholehearted support to the Reclaiming American Rare Earths (RARE) Act, a bipartisan bill introduced in the US House of Representatives. The Act aims at creating a well-rounded tax incentive program to attract investments in mining of rare earths found in the US.
- March 2020: Export Finance Australia, the country’s export credit agency, announced its interest in financing the Dubbo mining project located in New South Wales. The project is a brainchild of Alkene Resources, a leading rare earths producer in Australia, aimed at extracting rare earth metals such as yttrium, zirconium, and hafnium.
List of Key Players Covered in the Rare Earth Elements Market Report:
- Alkane Resources
- India Rare Earth
- China Minmetals Rare Earth
- Inner Mongolia Baotou Steel Hi Tech Co ltd
- Arafura Resources
- Avalon Rare Metals
- Great Western Minerals
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