Rare Earth Metals Market Analysis

Rare Earth Metals Market Analysis

Magnets application segment is set to exceed revenue generation over USD 4.4 billion in 2026. Increasing consumption of rare earth magnets in electric motors, turbine generators, electric vehicles, and other automobiles will propel the demand for rare earth magnets. In addition to this, rising demand for renewable energy equipment, and electric and hybrid automobiles.

Rare earth elements are majorly utilized in manufacturing different components of electric vehicles, as they provide high strength and corrosion resistance. They are expensive in nature compared to ceramic and aluminium nickel cobalt (AlNiCo) magnets, however, possess excellent properties as compared to conventional magnets. Neodymium iron boron (NdFeB) magnets can receive large currents to create a strong magnetic field, as it is important for the magnets to strongly resist demagnetization and operate for long time span in electric cars.
 

These excellent properties are seen to be a vital factor towards the shift of almost all the electric vehicle makers are neodymium magnets, instead of traditional magnets. For instance, Tesla, a major manufacturer of electric vehicles, has been choosing permanent magnet motors for electric vehicles, to cater the Chinese electric vehicle production.
 

The magnet segment was one of the leading segments in 2019 is closely followed by the alloy and the catalyst segment. The alloy segment is likely to hold a market share of 21% in 2026. Substantial projected market share is mainly due to usage of rare earth elements in alloying process to achieve desirable corrosion resistance and enhance mechanical characteristics.
 

Asia Pacific was mainly led by China in 2019 and is anticipated to exhibit the same trend throughout the assessment period. Asia Pacific held a market share of over 55% in terms of both volume and revenue in the overall RE metal market in 2019. The presence of the largest rare earth reserve along with major RE metal processors and consumer in the region is anticipated to further augment the rare earth metals market value.