The Value of Rare Earth Elements in Today's Investment Landscape

Understanding rare earth market fluctuations is integral to strategic planning. This digest explores demand, supply and costs to equip businesses with an accurate picture of both challenges and opportunities facing them.

2022 will see magnet rare earths become the focus, including Neodymium, Praseodymium, Dysprosium and Samarium, all produced only by China at present.

Demand

Rare Earth Elements (REEs) are expected to experience exponential growth over the coming decade, due to their widespread application across green energy technology such as wind turbines and electric vehicles; as well as production of magnets used in computers and mobile phones. Their unique magnetic, fluorescent, and conductive properties make REEs an excellent fit for these uses.

The global REE market is valued at more than $840 million and projected to experience compound annual compound annual compound annual compound annual compound annual compound compound growth rate from 2020-2025. The rare earth elements market can be split up into three groups based on element, application and geography: cerium, neodymium, praseodymium dysprosium terbium scandium being key constituents; for applications the market can include catalysts ceramics metallurgy glass polishing as well as other applications like catalysis catalysts ceramics ceramics ceramics ceramics etc

Luisa Moreno, managing director and director at Tahuti Global and Defense Metals Corp (TSXV:DEFN/OTCQB:DFMTF), predicts REE prices are likely to continue their upward trajectory into 2022. She suggests magnet rare earths - such as neodymium, praseodymium and dysprosium - have the greatest upside potential and this year might bring more gains; these materials provide inputs used in producing NdFeB magnets (the world's strongest magnets) as well as clean energy sources that support clean power sources whereas markets for yttrium and Holmium are expected to be driven by semiconductor industry demand."

REEs are found naturally as mixtures of oxides; to obtain concentrated forms, however, they must be mined, milled and separated using physical, magnetic and chemical methods. Once refined, REE products can be used across industries. A single F-35 fighter jet requires approximately 920 pounds of REEs. As society becomes more technologically advanced, supply chains for these essential minerals must also keep pace; Texas holds one of the largest domestic deposits of REEs and efforts are currently underway to bring these resources into market.

Nations have come under increasing strain due to China's outsized influence over global REE supply chains in recent years. Since a 2010 Chinese embargo on exports to Japan, countries have begun diversifying supplies and investing in technologies that reduce dependence on critical minerals; but shortages could delay clean energy transitions and push up costs; thus governments must implement measures to monitor supply chains closely and prepare for short-term disruptions proactively; regular market assessments/stress tests as well as emergency response exercises can identify points of weakness so appropriate measures can be put into action quickly and in case such disruptions occur in order to prepare proactively and respond efficiently when such an event happens.

http://www.betterworldlinks.org/index.php?cat=8709

Supply

Heavy magnets used in smartphones, wind turbines and electric vehicles rely on rare earth elements sourced from China for production of their magnets - vital components in many advanced technologies that rely on rare earth elements for strength. Unfortunately, their supply is often unpredictable; therefore investing in this market entails significant risk.

China holds the world's largest REE reserves and controls over 60 percent of mining operations and 85 percent of processing capacity for these metals, accounting for 90 percent of permanent magnet production. China's dominance poses a strategic threat to the United States which could risk national security consequences from strains in relations between Beijing and Washington; companies and governments are working on methods of safeguarding a domestic REE supply chain in response to this.

Although rare earth elements (REEs) pose risks, demand is anticipated to surge over the next several years as more companies turn to green energy production for powering consumer devices and making green power. Furthermore, consumer electronics sales continue to surge while polishing agents and liquid crystal displays become ever more essential - all driving up demand for rare earth elements in particular markets like these.

As demand for metals increases, mining and processing industries must adapt their practices to ensure increased efficiency while simultaneously cutting costs. Innovations will also help protect the environment while making use of raw materials more eco-friendly - working in concert across supply chains to optimize overall efficiency is necessary for future success.

Securing global REE supply requires extensive work. A major gap exists, however, and that needs to be filled immediately by building new processing facilities in both North America and Europe - this will reduce dependence on China for refining and processing purposes.

Investment in the rare-earths market may be challenging, yet offers an amazing opportunity to diversify your portfolio. The key is identifying those opportunities most likely to lead to success by studying trends and forecasts on this niche market, as well as current market conditions.

Costs

Rare earth elements (REEs) are a collection of 17 metals and alloys used widely in high-tech applications. Classified as critical minerals, production for these metals has become highly concentrated over the past several years in just a handful of countries; with growing demand, creating an environmentally responsible supply chain is of increasing importance.

Metal mining occurs naturally in small amounts on earth's crust, yet must be processed at great expense in order to produce useable metals. Unfortunately, mining often leads to environmental concerns, including groundwater contamination, deforestation, biodiversity loss and disruption of local communities. Metal mining in America is one of the top five toxic polluters and contributes to groundwater contamination, air pollution, wetlands destruction and wildlife losses.

As demand for REEs grows, companies are ramping up efforts to increase production capabilities. The United States was previously almost exclusively dependent upon China for REE production until 2018, but now aims to develop domestic production facilities of its own under the Biden administration with an eye towards creating a secure supply chain for these essential minerals.

Luisa Moreno, managing director of Tahuti Global and director at defense metals company VAC (TSXV:DEFN/OTCQB:DFMTF), noted that 2021 witnessed more major rare earth developments than in any previous seven year span. She mentioned how Myanmar coup and border closure caused prices for light REEs such as cerium and praseodymium to skyrocket significantly due to shortage, driving concentrate, oxide, and metal prices to 10 year highs.

Heavy rare earth elements (REEs), including dysprosium, terbium, yttrium and holmium are seeing price gains too; although its reasons remain elusive. According to Moreno's theory of consolidation of rare earths companies in China being one of the major contributors.

Rare earths markets are highly fragmented, with three countries accounting for more than 70% of global production. Due to the delicate nature of rare earth metals extraction and processing, which require special expertise for extraction as well as large sums of capital for exploration and processing; thus making this industry extremely vulnerable to changes in technology or climate policy.

http://stevenbluom.blogspot.com/2012/03/ibc-advanced-alloys-supplies-beralcast.html

Technology

Rare earth elements play an indispensable role in many popular technologies today - from smartphones to electric vehicles - yet Beijing's tight control over these essential materials has left much of the world searching for alternative sources of supply.

Rare metals may seem difficult to come by, but their true rarity can often be hidden among other minerals, making their separation for individual uses all the more challenging.

Problems surrounding rare earth minerals mining is compounded by their necessity of being extracted through open pit mining methods that emit radiation and other toxic pollutants into the environment, and requires large quantities of acidic solvents and carcinogenic toxins during extraction and refining processes, producing over two tons of toxic waste per ton produced of rare earth metals.

Despite these obstacles, the United States remains heavily reliant on China for rare earths, since California's Mountain Pass Quarry closed down as its source.

The Pentagon and other government agencies have taken steps to change that by awarding grants and contracts to companies developing domestic production and processing capabilities.

MP Materials of Las Vegas has received grants and contracts from both the Department of Defense and DOE to develop its technology for separating and recovering rare earths. MP is currently building a pilot plant in Texas to test this technology at scale.

As well as magnet-making capabilities, the facility will have the capacity to separate and process heavy rare earths like neodymium, dysprosium, and terbium - minerals which are widely used for commercial and national security applications like magnetostrictive alloys and liquid helium-3 reactors.

These technologies could significantly lower the costs of rare earths for both domestic and international uses, helping build a greener future while providing stable supplies of these metals. But their introduction remains an uphill battle.