The Rare Earths market is an ever-evolving field, and the effects of the main trends that are likely to affect the market in 2024 are already being felt. The world is increasingly looking to develop its supply of these materials, meaning there’s potential for significant change in the near future. This article will discuss the key trends that are likely to affect the Rare Earths market in 2024.
The first trend that will be of particular importance is renewable energy. The world’s increasingly pressing need to transition to renewable sources of energy has been highlighted in recent years, with the Paris Agreement, amongst others, highlighting the need to reduce carbon emissions as a part of this. At present, the energy sector is heavily reliant on the use of Rare Earths, meaning that an increase in renewable energy demand will lead to an increased demand in these materials too.
The second key trend likely to affect the Rare Earths market is the electric vehicle market. It’s estimated that global electric vehicle sales are set to increase by 600% between 2015 and 2025, meaning that demand for the materials used in the production of these vehicles is likely to also increase. The production of electric vehicles requires the use of Rare Earths in significant quantities, so this could result in a surge of demand in the coming years.
The final key trend likely to influence the Rare Earths market in the near future is the development of rare-earth element recycling technology. In recent years there has been an increased focus on the potential for the use of technologies such as hydrometallurgy and solvent extraction to be utilized in the recycling of these materials, with companies such as Lynas Corporation leading the way in this field. This could significantly reduce the reliance of the market on mined Rare Earths, creating a more sustainable Rare Earths market for the future.
Overall, the Rare Earths market is set to be greatly affected by the main trends in the coming years. Increasingly stringent environmental regulations, together with the continued rise of renewable energy and electric vehicles, as well as developments in rare-earth element recycling, could have a significant impact on the market. It’s important that investors and policymakers understand and monitor the trends as they continue to develop, in order to prepare themselves for the potential changes that are likely to occur in the next 4 years.