The Global 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 set of seventeen chemical elements in the periodic table, specifically the fifteen lanthanides plus scandium and yttrium. These metals generally have unique magnetic, phosphorescent and catalytic properties which make them important materials for applications such as consumer electronics, green technologies, healthcare, automotive, defense and others. Due to their excellent conductive, magnetic and luminescent properties, rare earth metals are crucial components in manufacturing rechargeable batteries for electric vehicles, wind turbines, mobile phones and other consumer electronics. The rising demand from electronics and electric vehicles sectors is expected to drive significant growth of the rare earth metals market over the forecast period.
Market key trends:
One of the key trends in the rare earth metals market is increasing use in permanent magnets for motors. Rare earth metals find extensive usage in manufacturing high-strength permanent magnets due to their unique magnetic properties. These magnets are increasingly being used in manufacturing high efficiency and low carbon emission motors for electric vehicles, wind turbines and other industrial applications. Another major trend is growing use of rare earth metals in lightweight and miniaturized consumer devices such as smartphones, laptops and tablets. Rare earth metals allow electronics manufacturers to reduce device size without compromising on performance. They are key components in manufacturing speakers, cameras and other components of consumer electronics. With rising electronics demand worldwide, consumption of rare earth metals is expected to grow substantially in coming years.
Porter’s Analysis
Threat of new entrants: The rare earth metals market requires huge capital investment for mining and processing activities. Also, the market is dominated by few players like China which controls the global supply, posing barriers for new players.
Bargaining power of buyers: The rare earth metals have limited substitutes and are crucial inputs for various industries. However, buyers have moderate bargaining power due to the availability of options from major suppliers.
Bargaining power of suppliers: China accounts for over 80% of global rare earth metals supply and has imposed export quotas in the past, giving it a strong position. Other countries are exploring alternatives to reduce dependence on China.
Threat of new substitutes: Rare earth metals have limited substitutes due to their unique properties. Ongoing R&D is exploring alternatives but none have achieved large-scale commercialization yet.
Competitive rivalry: The global market is highly consolidated with China controlling major supply. However, efforts to develop alternative sources of supply from countries like the US, Australia, and India is expected to increase competition over the forecast period.
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 demand for rare earth metals from automotive, electronics and renewable energy industries.
Regional analysis: Asia Pacific dominates the global rare earth metals market, with China accounting for a major share of global rare earth metals production. Countries like India, Vietnam, and Australia are also emerging as major suppliers to reduce dependence on China.
Key players: 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 largest producer of rare earth metals globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
