Cost of expanding the rare earths supply chain

The global energy transition to a lower-carbon future is driving the adoption of new energy technologies such as electric vehicles (EVs) and wind turbines. This is fuelling an increasing demand for rare earth elements used in permanent magnets, namely neodymium, praseodymium, dysprosium and terbium. Decades of experience in production and development, extensive integration, legislative support and financial incentives has solidified China’s dominant position in the rare earths industry. China currently accounts for 63% and 85% of global mined and refined supply, respectively. The downstream portion of the rare earth magnet value chain becomes increasingly China-centred, raising supply security concerns for key renewable technologies. This has encouraged governments around the world to develop and expand supply chains outside of China, but can these projects succeed in a pricing environment controlled by China?