Rare earth elements (REEs) are a group of minerals that are essential for high-tech and green energy applications. Understanding the different types of rare earths and the factors that affect their supply and demand is crucial for investors looking to capitalize on this growing sector.
### What are the types of rare earths?
Rare earths can be categorized in various ways, with one common classification being into “heavy” and “light” categories based on their atomic weight. While heavy rare earths are typically more sought after, light rare earths also play a vital role in various industries.
Another way to group rare earths is based on their uses. For instance, rare earth magnets like praseodymium, neodymium, samarium, and dysprosium are widely used, while phosphor rare earths such as europium, terbium, and yttrium are important for lighting applications. Cerium, lanthanum, and gadolinium are also occasionally included in the phosphor category.
One common feature of rare earths is the lack of readily available price information, as they are not traded on public exchanges. However, research firms like Strategic Metals Invest, Fastmarkets, and SMM provide pricing details for a fee.
### What factors affect supply and demand for rare earths?
China dominates the global supply of rare earth metals, accounting for about 70% of global production in recent years. This significant market share has caused supply chain disruptions in the past, leading to price spikes and market volatility.
The US and other countries have also intensified efforts to diversify the supply chain and reduce dependence on Chinese rare earths. Companies like MP Materials in the US have emerged as key players in the rare earths market, focusing on high-purity neodymium and praseodymium production.
Demand for rare earths is expected to surge, driven by the growth of electric vehicles, wind turbines, and other high-tech applications. Analysts anticipate a rebound in rare earths demand in the near future, particularly from the EV and wind turbine sectors.
Securing a stable supply of rare earths has become a top priority for many countries and companies. In addition to traditional mining methods, initiatives like rare earths recycling and deep-sea mud extraction are gaining traction as sustainable ways to meet the growing demand for these critical minerals.
Investors keen on the rare earths market should stay informed about supply chain developments, technological advancements, and geopolitical factors influencing the industry’s growth.
This article was originally published by the Investing News Network and has been updated to provide current insights on the rare earths market.
**Disclaimer:** The author of this article, Melissa Pistilli, holds no direct investment interest in any company mentioned. Editorial Disclosure: Aclara Resources, Appia Rare Earths & Uranium, Carmanah Minerals, DY6 Metals, Energy Fuels, Heavy Rare Earths, and Marvel Discovery are clients of the Investing News Network. This article is not paid-for content.