In light of the strong long term outlook on rare earth elements due to their critical position in the green transition, Reach Markets have written a Rare Earths Industry Review. This industry review delves into what rare earths are, where they come from, their place in net zero ambitions and geopolitics, key ESG considerations and supply/demand factors.

The decline in rare earth prices since the start of the year, combined with a bearish macroeconomic environment, has seen many explorers, developers and producers  brutally sold down. This could potentially open up an opportunity for investors to take advantage of a dip in the sector that could face a strong rebound sustained by powerful demand drivers over the long term.

Click here to express your interest in receiving the full Rare Earths Industry Review once it becomes available. You can read a preview of the industry review below.

In the coming weeks, we will be running The Insider: Rare Earths Summit, where an expert panel of fund managers, analysts and industry veterans will provide insights on market trends and how they identify potential opportunities. Click here to register your interest.

What are Rare Earths?

Formed by supernova explosions, rare earths are chemical elements found in the earth’s crust. The commodities are an indispensable strategic resource for countries all over the world to transform traditional industries and develop high-tech and cutting-edge national defence technology.

There are 17 different types of rare earths which are typically broken up into two categories – light and heavy – based on their chemical properties. The elements have varied uses and pricing dynamics. Heavy rare earths are generally more valuable than light, due to being less abundant and more difficult to mine and process.

The light elements consist of lanthanum, cerium, praeseodymium, neodymium, samarium and europium. 

The heavy elements consist of gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium and yttrium.

For a group of substances whose title insinuates scarcity, rare earth elements are actually some of the most abundant materials on earth. The issue is with their geochemical properties that result in a level of dispersion that in most cases makes them difficult and expensive to mine. Discovering a deposit that is of high enough grade to mine cost-effectively is such an irregular occurrence that they have been rendered “rare”. 

Rare earths form a crucial part of many of the devices considered essential in modern society and are seeing heightened demand in the green energy transition. These mineral resources are critical in a wide array of applications, from electric vehicles and wind turbines, to next generation MRI machines and innovative military technologies.

Neodymium and praseodymium (NdPr) in particular is critical to the creation of some of the strongest permanent magnets in the world, which are found in things such as electric vehicles, wind turbines and aircrafts. 

Rare earth elements and uses. Source:  Reach Markets.

Click here to express your interest in receiving the full Rare Earths Industry Review once it becomes available. 

In the coming weeks, we will be running The Insider: Rare Earths Summit, where an expert panel of fund managers, analysts and industry veterans will provide insights on market trends and how they identify potential opportunities. Click here to register your interest.

Past performance is not a reliable indicator of future performance.