Needed for the Low Carbon Shift
Neodymium-Iron-Boron (NdFeB) rare earth elements are critical to the transition to a low-carbon economy. They are key components in many clean technologies, including wind turbines, drones, electric vehicles, robotics, as well as high-tech industries such as electronics, aerospace, and defence. NdFeB electric motors are superior to traditional induction motors due to higher power density, higher efficiency and enabling lighter weight motor solutions. As a result, they are ideal for use in electric vehicles and other applications that require high performance and efficiency. It is crucial that we have a resilient and sustainable supply chain for these key technologies.
The Rare Earth Market
Demand & Supply
The market growth for rare earths will be fueled by the global transition towards low carbon technologies and in particular the push to implement this agenda across the mobility and energy sector.
Project Blue projects that magnet demand is the largest growing sector for rare earths, with their base case projecting a 3.8% CAGR to 2050.
They also expect that Nd & Pr supply will need to increase by 79% from the base case forecast to 2027 to meet demand in 2050, requiring nearly 50,000t of additional contained metal supply.
Furthermore, Dy & Tb will require a three fold increase in supply over the same period.
Consequently, there is a bullish outlook for rare earths.
requires an average
~100 g NdPr Oxide
Each electric vehicle
requires an average
~1 kg NdPr Oxide
Each direct drive wind
an average per MW
~200 kg NdPr Oxide
The Chinese control (80-90%) of the rare earth industry, as well as the entire permanent magnet electric motor supply chain.
This is of critical concern to governments seeking supply diversity to secure the energy transition and meet climate change targets.
Securing raw materials is paramount for the electric mobility revolution and related industries, as well as securing domestic revenues and jobs from these industries.