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According to the report of Grand View Research, the growing demand for electric vehicles that reduce carbon dioxide emissions is expected to promote the use of permanent magnets in battery production. The company said that the global rare earth element market was worth US$2.8 billion in 2018, and by 2025, the CAGR is estimated to reach 10.4%. A report by BrandEssence Research added that the market size will reach 20.6 billion US dollars. The report said: “In 2025, the growth of automotive magnet demand and energy production will make a major contribution to the growth of the global rare earth metal market during the forecast period. The demand for rare earth magnets is mainly due to the increase in its consumption in the power and energy sectors. Hybrid vehicles…increasing attention is paid to the use of clean and renewable energy, which puts tremendous pressure on power suppliers to generate electricity from renewable energy, which in turn will have a positive impact on the growth of the market. This week includes Medallion Resources Ltd. (OTCQB: MLLOF) (TSX-V: MDL), Lynas Rare Earths Limited (OTCPK: LYSCF) (OTCPK: LYSDY), Tesla, Inc. (NASDAQ: TSLA), MP Materials Corp. ( New York Stock Exchange: MP), NIO Inc. (New York Stock Exchange: NIO).
Cerium, neodymium, lanthanum, praseodymium, yttrium and dysprosium are the most commonly used rare earth elements. Neodymium and praseodymium rare earth permanent magnets are mainly used in the manufacture of batteries. In the manufacturing of magnets and catalysts in the automotive industry, the growing demand for these products has driven the market. Cerium is widely used as a catalyst in catalytic converters of motor vehicles, while neodymium and praseodymium are used to produce batteries for electric vehicles. Grand Ville added: “Sales in the entire automotive industry have increased (yearly). The increase in automotive demand has allowed manufacturers to maintain a balance between supply and demand, thereby increasing production. This is expected to boost the demand for catalytic converters. Because they are used Reduce harmful car exhaust emissions, thereby promoting the use of rare earth elements in the next few years… In terms of volume and revenue, the magnets are the largest application field in 2018. They are used in various applications, such as computer hard drives, Linear actuators, servo motors, speakers and headphones, and sensors. The growing demand for magnets in automobiles, turbines and consumer electronics is expected to drive the consumption of rare earth elements during the forecast period.”
Medallion Resources Ltd. (OTCQB: MLLOF) (TSX-V: MDL) latest news: As Medallion approaches key technical milestones, rare earth element prices are rising-Medallion Resources Ltd. (“Medallion” or “Company”) provides industry updates before reporting the results of the technical and economic assessment of its proposed U.S. rare earth element (REE) extraction plant, which will be released in the first quarter of 2021.
Driven by the high growth forecast of electric vehicles (EV), wind energy and electronic products that require a large number of high-strength rare earth permanent magnets, the price of magnetic rare earths has risen rapidly in recent months. The prices of neodymium (Nd) and ase (Pr) are collectively called “NdPr”. After the average price of US$41/kg in the past ten years, it has risen by nearly 50% this year, reaching US$65/kg. As all major automakers have committed to launch new electric vehicles and hybrid models, the Swiss investment bank UBS (UBS) recently predicted that the price of NdPr will rise to $100/kg by 2025.
Medallion’s proposed plant uses its proprietary Medallion Monazite process and is expected to produce approximately 3,500 tons of rare earth products per year. This will include approximately 800 tons of NdPr, an important magnet metal per year, which is a key input to power the powerful and lightweight traction motors of electric vehicles such as Tesla (NASDAQ: TSLA) and Nio Limited (NYSE: NIO).
All modern vehicle designs rely on light-weight electric motors to provide higher efficiency. This is partly achieved by incorporating REE magnets. Electric vehicles and hybrid vehicles that require longer battery life are particularly weight-sensitive, so compared to internal combustion engine (ICE) vehicles, 100% to 150% more REE magnets are usually used. Compared with ICE vehicles, most electric vehicles require an additional 1 kilogram of NdPr. Medallion’s forecast NdPr production can provide magnets for 400,000 electric vehicles each year.
Medallion President and CEO Mark Saxon said: “Based on current and projected NdPr pricing, we expect the economic outlook from independent technical and economic assessment to be very optimistic.” “As the final design and engineering progress, we welcome potential business cooperation Partners use this approach.” MP Materials Inc. (NYSE: MP), which owns and operates Mountain Pass, went public on November 18, 2020, and rare earth elements once again aroused the interest of the investment community. MPMaterials is the only company operating REE mining and mining, with more than 270 employees. The North Processing Plant, the United States, today shipped mineral concentrates to China’s Shenghe Resources Holdings Co., Ltd. (Shanghai: 600392) for processing. Currently, MP Materials’ production accounts for approximately 15% of global rare earth production, and plans to use the recently obtained funds to expand its business downstream, including the extraction, separation and sales of separated light rare earths.