Global Rare Earth Strategic Planning Outlook - Q2 2022

Wood Mackenzie forecast rare earth demand growth from energy transition applications will nearly double demand volumes in the period to 2050. Magnet applications will display the highest growth in demand, increasing two-fold by 2040. Supply availability and cost concerns are expected to cause substitution, particularly in magnet applications with the highest cost exposure. Prices for key rare earths will remain supported long-term by a tight market, though most rare earths will see longer term oversupplied markets. Incentivising the development of new mining and refined supply globally via pricing and off-take agreements will be critical for longer-term growth in the rare earths industry. Recycling will increase in importance, though challenges remain in the collection, dismantling and processing of scrap material.