The 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 refer to a group of 17 chemical elements in the periodic table. They are cerium, dysprosium, erbium, europium, gadolinium, holmium, lanthanum, lutetium, neodymium, praseodymium, promethium, samarium, scandium, terbium, thulium, ytterbium, and yttrium. Rare earth metals have special properties like catalytic, phosphorescent, and magneto-optical. They are used across various applications such as consumer electronics, defense, automotive, and more.
Market Dynamics:
The Rare Earth Metals market is driven by the rising demand from the consumer electronics industry. Rare earth metals such as neodymium, dysprosium, and praseodymium are used to make small and powerful magnets used in devices like smartphones, laptops, and electric vehicles. According to India Brand Equity Foundation, the consumer electronics market in India is expected to reach US$ 400 billion by 2025.
Another driver for the market is increasing investment in renewable energy. Rare earth metals such as neodymium, praseodymium, and dysprosium are used to make powerful and efficient magnets used in electric vehicles and wind turbines. The favorable government policies and growing environmental concerns are encouraging investment in renewable energy sources worldwide.
SWOT Analysis
Strength: Rare earth metals play a vital role in advanced technologies. The Rare Earth Metals Market has support from government policies to boost sustainable mining. China has an abundant rare earth deposits and leads in mining and refining capacities.
Weakness: Fluctuations in rare earth metal prices pose major challenges. Environmental issues related to mining and processing rare earth elements increases production costs.
Opportunity: Growing applications in clean technology like electric vehicles, wind turbines etc. will boost demand. Development of rare earth recycling programs can ensure secure supply and reduce environmental impact.
Threats: Geopolitical tensions can disrupt supply chains. Substitution through alternative materials may replace few rare earth applications over long term.
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 use in rechargeable batteries for electric vehicles and electronics. Asia Pacific dominated more than 60% of the global market in 2023 owing to the presence of major rare earth reserves and production facilities in China.
Regional analysis China accounted for largest share in rare earth production globally. Additionally, the country hosts large number of key rare earth companies aiming to strengthen global supply chains. Australia is also a prominent producer and is expected grow at fastest pace during the forecast period supported by presence of key rare earth projects.
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.
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