July 16, 2024

Rare Earth Metals Market driven by Low substitution for rare earth metals

Rare earth metals comprise a group of seventeen chemical elements found in the earth’s crust. They include lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, and yttrium. Rare earth metals possess unique magnetic and electro-chemical properties that make them indispensable for manufacturing a wide range of advanced technologies and electronics. They are used as catalysts for petroleum refining and production of glass polishing materials. Rare earth elements are also used in hybrid and electric vehicle batteries, lasers, fiber optics, magnets, rechargeable batteries, and other clean energy technologies.

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:

Substitute materials for rare earth metals remain limited due to their unique properties. This acts as a key driver for increasing rare earth metals demand. Magnets containing neodymium and dysprosium play a vital role in electric vehicles and wind turbines. With the rising focus on clean energy transition, demand for rare earth metals from renewable energy sector is surging. Additionally, rare earth metals are indispensable in manufacturing smartphones, televisions and other consumer electronics. Rapid urbanization and increasing disposable income in developing nations are favoring the sales of consumer electronics, thereby positively impacting rare earth metals consumption.

Porter’s Analysis

  • Threat of new entrants: High capital requirements for mining rare earth metals and processing act as a deterrent for new entrants in the market.
  • Bargaining power of buyers: Individual buyers have low bargaining power due to availability of substitutes and global suppliers in the market.
  • Bargaining power of suppliers: China dominates global rare earth metals production and has high bargaining power over pricing and supply.
  • Threat of new substitutes: There are no close substitutes for rare earth metals currently.
  • Competitive rivalry: Competition is high among the existing players to gain market share and profitability.

Key Takeaways

The global Rare Earth Metals market is expected to witness high growth over the forecast period. Regional analysis- The Asia Pacific region currently dominates the global rare earth metals market with China being the leader in rare earth metals production. The region’s market share is estimated to increase further owing to growing demand from end-use industries and expansion of production capacities by key players in the region.

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. China Northern Rare Earth (Group) High-Tech Co., Ltd is the market leader with over 50% global rare earth metals production. The company is expanding its mines and refining facilities across China to cater to growing demand.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it