Strategic Restructuring of Rare Earth Assets under Discussion among Chinalco, Minmetals Rare Earth and Ganzhou Government

The prices of mainstream rare earth products are expected to be strongly supported by the downstream demand in 2022, with prices of mainstream rare earth oxides such as praseodymium oxide, terbium oxide and dysprosium oxide steadily moving upwards, according to SMM. Specifically speaking, China's new energy vehicle production is expected to reach 2.78 million units in 2021 and 14.22 million units by 2030, with a CAGR of 20% during 2021E-2030E. The development of elevators, air conditioners and wind power generation will also sustain its momentum.

Amid the recent strong upward trend of rare earth prices, demand from new energy vehicles (NEVs) and other emerging downstream sectors surge, while tight control over upstream supply side may continue, thus creating the historical pivot for rare earth industry. The supply & demand and national policies are expected to walk in step with each other, opening the door to long-term bullish market. As a result, the classic Davis double play may appear among the performance and valuation of rare earth board.

In recent weeks, the domestic rare earth market as a whole prospered evidenced by overall rising prices of all products. In particular, the price of praseodymium oxide increased significantly among others. In the middle and late June, the market prices of praseodymium rallied, and terbium bottomed out. Later, since mid-July, market prices of light and heavy rare earth rose across the board, and the market is relatively in tight supply resulted from insufficient pre-stockpile or oversold. Hence the short supply of metal intensified in current stage.

As per Customs data, China’s rare earth export volume reaches 3,467 tons, dropping 6.68% on monthly basis, slightly rising 1.02% on yearly basis.

The Ministry of Industry & Information Technology (MIIT) released the first rare earth production quota for the year April 13, cnmn.com reported.

Rare Earth Minerals Plc. has announced an updated Mineral Resource Estimate for Yangibana.

In the coming years, India will be scouting around for strategic partnerships with multinational mining exploration companies to secure the supply of critical minerals.

China’s Ministry of Industry and Information Technology (MIIT) is going to set new standards for domestic rare earth producers.

Rare Earth Salts announced plans to commercialize its separations processing business last Thursday.