Rare Earth Elements Market Secrets Revealed

Wind energy has become one of the most recognized, cost-effective, and clean solutions for generating electricity. A clean alternative to non-renewable fuels, wind energy farms provides an alternative method to generate electricity and reduce greenhouse gas emissions. Wind energy generation is expected to be one of the fastest-growing markets in the future because of growing federal incentives for production and regulations on emissions. Wind turbines involve the usage of large gearboxes for electricity generation. Direct-drive permanent magnet generators replace conventional gear-driven turbines because of the latter's efficiency and lower maintenance downtime. Some direct-drive turbines are as much as 25-30% more efficient than gear-driven turbines.

A typical large wind turbine generator requires nearly two tons of high-strength magnets that are usually alloys of boron, iron, and didymium metal. Each MW of turbine uses about half a ton of permanent magnet and involves the usage of 150-200 kg of didymium metal, which is a mixture of praseodymium, dysprosium, and neodymium. The installed wind power capacity as of 2019 stands at 650.8 GW, 59.7 GW added in 2019 Leading wind experts from around the world.

The share is expected to rise further to 8% because of aggressive expansion activities in China and Europe. China alone announced plans to raise its wind power capacity to 200 GW by 2020. This demand, which primarily comprises direct-drive turbines, will alone consume the entire supplies of neodymium and praseodymium metal produced in the world by 2020.

China has remained the key producer and supplier of rare earth for the last three decades. However, the country's restricting export quotas and raising duties is forcing various countries to evaluate alternative sourcing agreements. To capitalize on the same and also on the growing demand from end-uses, various countries have embarked upon exploring their untouched and underutilized reserves. This increase in production capacities outside China is greatly supporting the growing demand for rare earth.

Some notable exploration and development assessments in the US include Bear Lodge, Bokan Mountain, Elk Creek, Lemhi Pass, Diamond Creek, La Paz, Thor, Pea Ridge, and Round Top. Similarly, large numbers of projects are underway in Australia, Brazil, China, Greenland, India, Madagascar, Mozambique, South Africa, Sweden, Tanzania, and Vietnam. On-schedule development of these sites is expected to ease China's dependence on rare earth supplies and will further propel the growth of the market. Developing countries in Asia and Africa, particularly Vietnam, Nigeria, Madagascar, India, and South Africa, are proving to be promising sources of rare earth with production costs, which are competitive to those of China and because of the presence of high-quality deposits.

Permanent magnets are widely employed in hybrid vehicles, wherein they are used predominantly in drive motors. About 1-2 Kg of REO equivalent is used in the manufacture of every hybrid car, wherein they are also used to manufacture rechargeable batteries. Rare earth metals are used in NiMH batteries, wherein neodymium, praseodymium, and lanthanum are used in combination with nickel, cobalt, and aluminum. These batteries are powerful and light and occupy less space compared to conventional lead and lithium batteries. 

Growing concerns regarding fuel emissions and federal incentives force the automotive industry to introduce efficient hybrid vehicle variants. With rising energy efficiency and increased environmental awareness among consumers, hybrid electric vehicles are expected to face intense demand going forward. In addition to passenger cars, rare earth oxides are also used in electric bicycles and tricycles, and magnetic refrigeration.

Besides, Rare earth compounds of yttrium, terbium, cerium, and gadolinium are used as phosphors in various electronic appliances such as LCDs and smartphones. These rare earth compounds exhibit electro-phosphorescence, wherein an electric discharge in the compounds results in color variations. In addition to the above, these elements are also used in energy-efficient lighting and magnetic refrigeration. However, the latter still needs to make inroads into the consumer segment. Magnetic refrigeration is now predominantly being used for industrial purposes. A rise in disposable incomes, technology breakthroughs, and falling microprocessor prices propel the demand for personal gadgets such as mobile phones, laptops, and tablets across the world.

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