According to the certified consulting firm ESOMAR Future Market Insights (FMI), the rare earth metals market is on the cusp of steady growth of approximately 6% CAGR, exceeding the market value of US $ 3,818.8 million between the forecast period 2021 and 2031.
Growing consumer preference for electronic vehicles and rapid expansion of automotive and electronics industry are emerging as the major factors increasing the growth of rare earth metals market.
The presence of industries with high growth potential, including consumer goods and renewable energy in developed countries such as the United States, United Kingdom and Germany, will propel sales in the market.
Get more analysis on this rare earth metals market @ https://www.futuremarketinsights.com/ask-question/rep-gb-2290
Permanent magnets used in wind turbines are made from rare earth metals such as dysprosium and neodymium. In view of this, a constant expansion of wind turbine installations around the world will create an environment conducive to sales of rare earth metals.
In addition to this, the market will continue to benefit from the application in the manufacture of batteries installed in electric vehicles. With electric and hybrid vehicles sales are expected to accelerate in the coming years as demand for rare earth metals steadily increases.
Increasing digitization and urbanization in developing countries such as China, India and South Korea are driving demand for consumer electronics, which in turn is boosting sales of rare earth metals.
According to IMF, Asia-Pacific excluding Japan will continue to show strong growth in the global market. Within the region, the Neodymium segment is expected to gain a remarkable 270 basis points by 2026 compared to 2016.
China, followed by India, will become the dominant market for rare earth metals in Asia-Pacific. The continued boom in mining activities, in addition to the expansion of the electronics and automotive sectors, will support growth in the country.
Key Points From IMF Rare Earth Metals Market Research
- Neodymium will become the preferred type of metal throughout the forecast period.
- Permanent magnets will dominate the application segment.
- The United States will show strong demand due to the rapid expansion of the automotive and renewable energy industries.
- China will dominate the rare earth metals market due to the presence of major players and increased production of consumer electronics.
- The UK will experience steady growth, driven by increasing demand from various end-use industries.
- South Korea and Japan will account for nearly 14% of the market share.
“Companies operating in the market adopt sustainable mining policies to gain a competitive advantage. On top of that, they are seeking approval from international organizations to help expand capacity, ”says the IMF analyst.
China Northern Rare Earth (Group) High-Tech Co., Ltd., Rising Nonferrous Metals Share Co., Ltd., Lynas Corporation, China Minmetals Corporation Limited and Aluminum Corporation of China Limited are among the major players operating in earth metals rare market.
Key strategies incorporated by manufacturers include a focus on sustainable mining practices, research and development regarding the efficient use of metals, industrial grade machinery installations, and expansion of supply facilities. For example:
- In December 2019, Lynas Corporation partnered with Australia-based Kalgoorlie Boulder to open a new plant to process materials from the nearby Mt Weld lanthanide deposits.
- In June 2021, Arafura Resources Ltd., received approval and a letter of support from the Northern Australian Infrastructure Facility (NAIF) for the inclusion of its Nolan NdPr sites as an area defined by Australian law from North, thereby improving sustainable mining practices in the region. .
More information on the rare earth metals market
In its latest report, IMF offers an unbiased analysis of the global rare earth metals market, providing historical data for the period 2016-2020 and forecast statistics for the period 2021-2031. In order to understand the potential of the global market, its growth and scope, the market is segmented on the basis of the type of application (catalysts, permanent magnets, metallurgy and alloys, polishing, glass, phosphors, ceramics and others (fertilizers, pigments, defense, etc.) type of metal (Neodymium, Yttrium, Dysprosium, Terbium, Europium, Cerium, Lanthanum) in seven major regions (North America, Latin America, Eastern Europe, Asia-Pacific excluding Japan, Western Europe ‘West, Japan and Middle East and Africa)