Rare Earth Metals: Powering the Future of Investments

Rare earth elements (REEs) are an indispensable component of many high technology and "green" products, including permanent magnets used to power everything from smartphones and jet aircraft to electric vehicles. REEs have luminescent and catalytic properties which make them highly sought-after by manufacturers of permanent magnets used across industries including mobile phone manufacturing, aircraft engineering and electric vehicle production.

China holds an overwhelming 85% share in rare earth production and processing globally; however, other options do exist.

Market Overview

Rising demand for consumer durables, automobiles, energy efficient lighting fixtures, catalysts and batteries should drive rare earth elements market growth. Furthermore, alternative energy sources like solar, wind and tidal power should further spur demand as rare earth elements are essential in manufacturing components and equipment that generate renewable electricity sources.

Recent advances in AI, IoT, and wirelessly connected devices are creating an ever-increasing demand for semiconductors containing rare earth elements. Many modern devices feature single system on a chip (SoC) designs that combine processors, memory, RF transceivers, sensors, power management features, connectivity components, power consumption management features and connectivity components into one cohesive package.

China is the world's leading producer and exporter of rare earth elements. China has had an active rare-earth mining industry since the 1970s when its Communist government invested heavily in manufacturing capacity development in order to restore domestic prosperity following decades of political instability and catastrophic events in 20th century history.

Europe holds the second-leading share in the rare earth elements market with xx% as of 2022. Europe's automobile industry is one of the primary drivers for demand of rare earth elements such as magnets such as neodymium used for motors and generators in hybrid cars, and increased consumption of renewable energy is anticipated to further drive rare earth element demand across the continent.

Technology Applications

There are 17 rare earth elements listed in the periodic table, each metallic metal possessing unique fluorescent, conductive or magnetic properties. Rare earths are extremely valuable, serving as building blocks in technologies, consumer products and industrial processes alike. Furthermore, in chemistry rare earth elements act as catalysts that speed up chemical reactions while making them more efficient.

Manufacturers around the globe rely on REEs to build products ranging from cell phones and TVs to computers and jet aircraft as well as wind turbines and electric cars (exhibit 1). Permanent magnet manufacturing accounts for 43% of rare earth demand worldwide.

REEs are essential components for green energy applications, including wind turbine motor magnets made of neodymium-iron-boron and light emitting diodes phosphors used on television and computer screens; and light-emitting diodes used as light emitting diodes on television and computer screens; they're also utilized in fluid catalytic cracking of petroleum refinements, nickel metal hydride batteries and various metallurgical applications.

China is both the primary producer and consumer of rare earth elements (REEs), importing nearly all their supply from abroad. Partly due to a desire to reduce pollution caused by REE production processes locally, its production dominance may also reflect China's desire to source ethical and sustainably produced REEs at lower costs while at the same time adhering to government initiatives to ensure such activities take place.

http://seekingalpha.com/article/502471-great-western-minerals-group-valuation-actually-is-great-part-i-of-iv

Supply & Demand

Supply and demand are typically the driving forces behind commodity prices, with scarcer resources driving up their costs as mining companies look for new sources. Rare earths production usually starts years after purchasing an initial mine site.

China is the sole global supplier of rare earth elements (REEs). China controls nearly all known reserves and controls virtually every step in the supply chain - an over-reliance which threatens U.S. national security, prompting efforts to diversify domestic REE production.

Mining REEs is an intricate process involving toxic chemicals used in leaching ponds to extract them, often near radioactive material deposits that could pollute nearby water tables and release toxic byproducts into the air. Mining for REEs often takes place near these radioactive materials which could further exacerbate environmental concerns.

Many countries possess the potential to produce rare earth elements (REEs), yet developing REE deposits is an expensive and complicated endeavor. China restricts REE exports in order to satisfy domestic demand, leading to some shortages. Lynas LLC of California is working towards building an REE separation plant capable of competing with Chinese production lines - in hopes of increasing production while decreasing U.S. dependency on suppliers from China.

http://howdoiinvestingoldaebi443.timeforchangecounselling.com/making-an-investment-in-rare-metals

Global Challenges

Rare earth metals will play an essential role in transitioning towards clean and efficient technologies, from car exhaust systems using neodymium magnets to reduce pollution to glass polishers using cerium oxide powder; digital displays and monitors using yttrium/erbium phosphors producing bright colors in an energy-efficient manner; while smartphone camera lenses use lanthanum-coated lenses which help minimize distortion while creating clear screens showing images with high quality images; all are examples of applications of rare earth elements in everyday use.

REEs are used in highly sensitive applications, including radar and sonar systems, making them integral components of defense technology. Their increasing demand is expected to spur additional investments into REE production.

However, the supply chain for rare earth elements (REEs) minerals is highly concentrated with China accounting for most of their global output in cobalt, lithium and some rare earth elements (REEs). Furthermore, refining and processing operations are carried out primarily by large companies with these high concentrations making the supply of REEs vulnerable to physical disruption or trade restrictions in major producing nations.