OVERVIEW

Global Demand

  • China accounted for 70% of world mine production of rare earths in 2022.

  • China is home to at least 85% of the world’s capacity to process rare earth ores.

  • The United States sources most of its rare earth imports from China.

  • The U.S. government announced that Canadian companies can be eligible for the Defence Production Act that will be awarded as grants, not loans, to companies that can help secure domestic REE supply.

  • Canada and the U.S. signed a Memorandum of Understanding confirming Canada’s participation in the U.S.-led Energy Resource Governance Initiative (ERGI), part of a multi-pronged strategy by Washington to break free of China’s near-monopoly on so-called critical energy minerals.

China Dominates the Market

MINING

Processing

EXPORTS

Domestic Opportunity

Market Size Outlook

(USD Million)

2017: USD $6,898.00 Million

Rare Earth Metals Market

SHARE BY APPLICATION (USD MILLION)

No Data Found

No Data Found

Permanent Magnets Segment

2017: USD $1,972.83 Million

Market growth will ACCELERATE at a CAGR of

8.3%

Growth contributed by APAC

72%

Growth for 2023

8.1%

Incremental growth ($M)

4932.67

The market is FRAGMENTED with several players occupying the market

Industry Leaders

MP Materials (NYSE: MP)

  • The only operating mine in North America
  • $4B Market Cap
  • Public Through Chamath Palipathya SPAC

Lynas Rare Earths (ASX: LYC)

  • First Rare earth refinery to be built in North America, shifting away from China.

  • $6.85B Market Cap.

  • $258M contributed from US government.

The Power of REE Drives Global Economies

Rare Earth Elements (REE) Applications

AGRICULTURE

  • Farm Equipment Motors
  • Fertilizers

AUTOMOTIVE

  • Vehicle motors
  • Catalytic converters

AEROSPACE/DEFENCE

  • Plane motors
  • Submarines
  • Guidance equipment
  • Thermal barrier coatings

CHEMICALS/ CATALYSTS

  • Optical-quality glass
  • Air pollution control

HEALTHCARE

  • MRI scanners
  • CT scanners

ELECTRONICS

  • Computer screens
  • Smartphones
  • Semi-conductors

POWER GENERATION

  • Wind turbines
  • Electric vehicles

REE Global Production 2022

No Data Found

REE Global Reserves (estimates) 2022

No Data Found

Supply Chain Headlines

Energy Resources Governance Initiative (ERGI)

Canada and the U.S. signed a Memorandum of Understanding confirming Canada’s participation in the U.S.-led initiative as part of a multi- pronged strategy by Washington to break free of China’s near-monopoly on so-called critical energy minerals.

US Government announces Canadian companies can be eligible for the Defence Production Act that will be awarded as Grants, not Loans, to companies that can help secure domestic REE supply.

Three Strategic Objectives:

  1. Engage resource-rich countries on responsible energy minerals governance.
  2. Support resilient supply chains.
  3. Meet the expected demand for clean energy technologies.

The Canadian government will spend C$250 million on its domestic semiconductor industry to boost research and development and manufacturing, the prime minister’s office said in a statement.

Click image to enlarge
  • An electric vehicle (EV) uses 1kg to 3kg of neodymium-iron-boron (NdFeB) magnets in standard drivetrain motors.
  • NdFeB magnets are 93% of all electric vehicles. Tesla, GM, Ford, VW, Hyundais, Toyota and others build vehicles using these magnets.
  • Every ten million new EV’s require ~10,000 tonnes of additional neodymium or ~20% of current annual global supply. Over 70 million electric vehicles are expected to be sold when internal combustion engine vehicles are phased out.

Source: MP Materials, Morgan Stanley, CRU

Rare Earth Elements (REE): CRITICAL USES

Companies directly affected by the Rare Earth market and Supply Chain

  • Nvidia, Taiwan semi-conductor, Intel are the largest semiconductor manufacturers and heavily rely on REE to keep up with the massive demand, especially due to AI
  • Apple: Microchips and semiconductors
  • Tesla: Magnets for electric vehicles and microchips in cars
  • Open AI heavily use semiconductors to power their technologies