Rare Earth Mining & Processing Firms Develop $14 Billion in Projects to Meet Energy Transition Demand

Researched by Industrial Info Resources (Sugar Land, Texas)--The shift to clean energy in order to reduce greenhouse gas emissions is driving demand for certain metals, including copper, lithium and rare earths. According to the International Energy Agency (IEA), demand for rare earths is expected to increase three to seven times by 2040, depending on the choice of wind turbine technology used in future windfarm projects, as countries rush to build out renewable energy infrastructure and electrify transportation.

Rare earths are used in permanent magnets that are important for wind turbines and electric vehicle motors. Offshore wind turbines, especially those employing direct-drive, permanent magnet synchronous generators, require more than twice as much rare earth elements as traditional onshore wind turbines, and the market share for this technology is expected to grow.

Right now, mining and processing of rare earths are concentrated in a few countries. China, the U.S. and Myanmar account for more than 83% of the mining of rare earths, with China accounting for 60%. When it comes to processing, China dominates with more than 85% of the processing capacity, with Malaysia and Estonia accounting for the remaining capacity.

As a critical mineral, rare earths are being included in government funding programs aimed at securing domestic supply for rare earths in several countries.

All of this has caused a sharp rise in rare earth exploration and development of mining, as well as the downstream separation and refining operations. Globally, there are more than 145 projects totaling $14.3 billion for rare earth mining and downstream processing operations. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of related projects.

Click on the image at right to view a chart showing these projects by country.

Australia has the most projects, followed by the U.S., China and Canada. Sixteen of these projects are under construction, while the remaining 130 are in the planning or engineering stages. MP Materials Corporation (Las Vegas, Nevada) has begun construction of a stage II expansion at the Mountain Pass rare earth oxide refinery restart and retrofit project in California.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.