Global rare earths investment horizon outlook - Q3 2023

The rare earths industry continues to evolve under the energy transition, with growth in key demand drivers for renewable technologies encouraging the development of new supply and expansions at existing operations. Wood Mackenzie expects the neodymium market to remain in a constant state of relative market tightness, fluctuating between short periods of surplus and deficit equivalent to +/- 2% of demand. Forecast prices for rare earths show diverging trends depending on their exposure to the permanent magnet industry. Key magnet elements have the strongest support from rapid and persistent demand growth from electric vehicles in particular. Non-magnet-related elements will remain subdued with a building oversupply and weak demand growth.