Global Rare Earths Market to Reach $4.5 Billion in 2019

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 11/25/15

The BS B2B Bureau reports that India will emerge as one of the key markets with rise in domestic production of motor vehicles. The global demand for rare earths is forecast to increase from 125,900 metric tonnes in 2014 to 149,500 metric tonnes in 2019, valued at $4.5 billion, according Freedonia Group new report. Highest increase is expected for the permanent magnet segment, boosted by expanding production of advanced neodymium magnets for applications such as wind turbines and hybrid and electric vehicles. Rising output of nickel-metal hydride (Ni-MH) batteries is also expected to fuel rare earths demand. In addition, upgrades to oil refining sectors in emerging countries are projected to boost global catalytic cracking capacity, supporting the production of fluid cracking catalysts and associated demand for lanthanum and cerium. Rising production of steel, motor vehicles, and electronics is also expected to drive rare earths consumption. China will continue to remain the leading consumer of rare earths, accounting for over two-thirds of global demand in 2019. Growth in the Chinese market will be driven by increases in the country output of neodymium magnets, Ni-MH batteries, and refinery products, said Carolyn Zulandt, analyst, of Freedonia, as well as metal alloys, and catalytic cracking capacity. Japan will remain the second largest global market, benefiting from a large domestic electronics manufacturing sector and robust demand for rare earths in the production of batteries, magnets, and polishing powders. India is expected to emerge as one of the fastest growing markets for rare earths. Rising domestic production of motor vehicles and metal alloys, as well as expanding catalytic cracking capacity are expected to boost rare earths consumption in the country. India is also developing local production of rare earth magnets, although this market will remain small in the near term.