Rare Earth Metals Market is Expected to Reach a CAGR of 8.5% During 2016-2026
FMI in its report titled “Rare Earth Metals Market: Global Industry Analysis and Opportunity Assessment, 2016–2026” reveals that rare earth metals are finding robust application in electric and hybrid cars. Some the inherent properties of these rare earth metals play a crucial role in developing cutting-edge technology for automobiles.
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Global Rare Earth Metals Market: Key Opportunities
The report cites that growing practice of recycling of rare earth metals is slowly overcoming the demand-supply issues as well as ensuring a steady supply of critical rare earth metals. Moreover, recycling of rare earth metals is also considered as a positive step taken towards reducing environmental degradation from mining and processing of rare earth metals. Over the past couple of years, rare earths have emerged as important resources despite being scarce and concentrated in only a few countries. China accounts for a notable share in terms of overall global rare earth metal reserves. At the same time, the country is also one of the largest consumers of rare earths. In 2015, China represented nearly 83% of the global rare earths output. Some of the leading players in the global rare earth metals market such as China Northern Rare Earth (Group) High-Tech Co., Ltd, Rising Nonferrous Metals Co., Ltd, Beijing Zhongke Sanhuan High-tech Co. Ltd., China Minmetals Rare Earth Co., Ltd, Jiangxi Tungsten Industry Group Co. Ltd and Aluminum Corporation of China Limited are all having their headquarters in China. Amongst others, Lynas Corporation, Ltd., Arafura Resources Ltd., and Alkane Resources Ltd. that are based in Australia also have a healthy presence in the global market. Countries such as the U.S., Australia, Russia, and Brazil, compose the remainder of the global rare earths output.
Global Rare Earth Metals Market: Additional Highlights
Application of rare earths as permanent magnets is significantly high. Which is why demand for rare earths for making permanent magnets is expected to remain strong throughout the assessment period.
By metal type, demand for neodymium will continue to grow at an impressive rate in 2017 and beyond. In 2016, neodymium held nearly 38.4% value share of the market and expected to represent similar figures over the next couple of years.
Rare earth alloys as Ni-MH batteries used in hybrid electric vehicles and other appliances is also expected to register steady growth during the forecast period.
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