REIA: NdFeB demand to increase by over 75% in the next 10 years based on 2023 supply

At the CLNB 2024 (9th) China International New Energy Industry Expo - Overseas Investment Forum hosted by SMM, Andrea Cornwell, a mining executive from the Rare Earth Industry Association (REIA), introduced topics related to "Rare Earth Elements and Their Role in the Green Energy Transition."

What are rare earth elements?

Rare earth elements are 17 elements in the periodic table with unique properties that are essential in various modern technologies, including electronics, renewable energy, defense systems, and healthcare.

They are abundant in the Earth's crust and can be extracted using basic mining principles. Nd-Pr-Dy-Tb are used to manufacture permanent magnets, lanthanum and cerium polishing powders are used in catalyst production and glass, Eu is used in LED lighting, and gallium is used in MRI contrast agents (medical). However, their end uses require complex separation processes.

Rare Earth Element Processing

From upstream mining to midstream processing to downstream utilization, there is a vast and complex rare earth value chain with numerous global market participants.

Rare Earth Elements in the Green Transition

95% of electric vehicles use rare earth permanent magnet motors.

Demand for rare earths in the energy transition

In 2023, the magnet industry surpassed the glass industry to become the largest sector for renewable energy demand, accounting for about 26%; by 2033, magnet applications are expected to account for 43% of global demand (90% by value).

Rare earth supply will increase over the next decade, but supply shortages remain a risk

Over the next 10 years, NdFeB demand is expected to grow by more than 75% based on 2023 supply; however, the corresponding supply growth forecast is less than half, at only 36%.

Rare Earth Challenges and Opportunities

The growing global demand to meet the needs of the green energy transition...

...long-term global supply security, through multiple upstream and midstream projects, achieving supply diversification globally to fill in this supply gap...

However, it should be noted that if public/private investment and approvals are not secured, recent rare earth price volatility and other risks may hinder project development.

Many jurisdictions are changing their legislation and attitudes towards rare earths, and... many downstream consumers are requiring sustainability...

Creating innovative opportunities to develop:

A common approach to assessing environmental impact and promoting best practices in green mining; a set of common global socio-economic reporting standards; supply chain transparency; promotion of recycling technology data security; general cooperation and elimination of misinformation related to rare earths.