Global rare earths investment horizon outlook - Q4 2022

Rare earth prices reached a turning point towards the end of Q3 and have since trended upwards, particularly in December as magnet manufacturers look to increase their inventories ahead of the early spring festival closures in January 2023. Rare earth demand has a positive outlook, driven by the use of permanent magnets in renewable technologies. As global efforts to decarbonise intensify, governments around the world are keen to establish diverse and secure supply chains. However, China is also investing internationally at upstream stages of the supply chain, highlighting its reluctance to relinquish market control. To facilitate long-term demand growth, expansions at existing operations and the development of new primary mining and refining operations will be crucial. We expect recycled supply to play an increasingly important role in supplementing primary production, particularly beyond 2030 as feedstock availability from end-of-life and swarf material improves.