Global Rare Earth Metals Market 2017-2021
About Rare Earth Metals
Rare earth metals comprise 17 chemical elements in the periodic table, which include fifteen elements of the lanthanide series, and scandium and yttrium. Scandium and yttrium are also considered rare earth metals as they are found in the same mineral ore deposits as the other elements of the lanthanide series. Rare earth metals have unique physical and chemical properties, which make them suitable to alloy with other metals in applications that require properties such as enhanced magnetic strength and high-temperature resistance.
Technavio’s analysts forecast the global rare earth metals market to grow at a CAGR of 13.67% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global rare earth metals market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Rare Earth Metals Market 2017-2021
Technavio recognizes the following companies as the key players in the global rare earth metals market: Alkane Resource, Arafura Resources, Avalon Advanced Materials, China Minmetals Rare Earth, and Lynas Corporation.
Other Prominent Vendors in the market are: Baogang Group, Canada Rare Earth Corp, China Rare Earth Holdings, Frontier Rare Earths, Greenland Minerals and Energy, Indian Rare Earths, Jiangxi Copper Company, Montero Mining and Exploration, Namibia Rare Earths, Neo, Quest Rare Minerals, Rare Element Resources, Showa Denko K.K, and Ucore Rare Metals.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is rise in production capacities and emergence of alternative suppliers. Lucrative trade and the growing demand for rare earth metals has resulted due to the intense evaluation of domestic reserves for exploitation and leveraging them for strategic uses by several countries. This is being encouraged by large rare earth metal consuming nations in order to leverage their supply risks. Technavio observes an increased investment in this sector in India, South Africa, Brazil, Australia, Canada, Vietnam, and Malaysia. These countries are likely to emerge as reliable alternative suppliers to China. New developments in North America (mainly Canada), Australia, and Africa are contributing to the new rare earth element resources. Japan has committed huge investments in these nations in order to reduce its import dependence on China. Most of the mines currently being developed are expected to come on-stream by 2017-2020. Therefore, Technavio expects a further drop in the supply share of China.”
According to the report, one driver in market is elevated usage in direct-drive turbines for wind energy production. Wind energy has become one of the most recognized, cost-effective, and clean solutions for generating electricity. A clean alternative to non-renewable fuels, wind energy farms provide an alternative method to generate electricity and reduce the emission of greenhouse gases. Wind energy generation is expected to be one of the fastest-growing markets in the future because of growing federal incentives for renewable energy production and easing regulations. Wind turbines involve the use of large gear boxes for generating electricity. Conventional gear-driven turbines are being replaced by direct-drive permanent magnet generators because of the latter's efficiency and lesser downtime during maintenance. Some direct-drive turbines are as much as 25%-30% more efficient than gear-driven turbines. A typical large wind turbine generator requires nearly two tons of high-strength magnets that are usually alloys of boron, iron, and didymium metal. Each MW of turbine uses about half a ton of permanent magnet and in turn involves the use of 150-200 kg of didymium metal, which is a mixture of praseodymium, dysprosium, and neodymium.
Further, the report states that one challenge in market is demand-supply outages and the rise of substitutes. The global supply of rare earth metals is heavily concentrated in certain geographies while the demand is widely spread across the world. As a result, trade plays a major role in the reach of rare earth oxides to various end-use industries across the world. The current production is mainly restricted to the US and China with other geographies having scarce produce. As a result of this overdependence on a limited number of mining sites, any disruption to production often results in huge price fluctuations and challenges the availability to various sensitive end uses. Environmental concerns, enactment of federal quotas and rising production costs often result in the closure of small mining sites. This leads to the disruption of supplies and exports to key importing countries, which either rely on recycling or switch to substitutes. For instance, titanium and vanadium modified with nickel, chromium, and manganese can be used as a substitute for rare earth metals in NiMH batteries. In addition, the rapidly growing end-use demand outpaces the supply because of the lag period involved in the commercial development of reserves. This rising deficit propels a serious evaluation of substitutes. Many permanent magnet manufacturers are intensively researching to eliminate the use of rare earth metals, which acts as a threat to the market.
Alkane Resource, Arafura Resources, Avalon Advanced Materials, China Minmetals Rare Earth, Lynas Corporation, Baogang Group, Canada Rare Earth Corp, China Rare Earth Holdings, Frontier Rare Earths, Greenland Minerals and Energy, Indian Rare Earths, Jiangxi Copper Company, Montero Mining and Exploration, Namibia Rare Earths, Neo, Quest Rare Minerals, Rare Element Resources, Showa Denko K.K, and Ucore Rare Metals.