Global rare earths short-term outlook May 2023

Prices for key magnet rare earths reached a turning point in May, following improved purchasing activity from downstream producers. Wood Mackenzie understands some suppliers began withholding material from spot sales in anticipation of further price gains. However, we don’t expect any significant price increases until later this year due to adequate supply availability. The ROW pipeline of developing projects at the mined and refined stage continues to expand as governments around the world look to improve supply chain security. Refined supply has been bolstered following the decision from the Malaysian government to extend the operating conditions at Lynas’ LAMP facility. This will reduce the risk of disruption while Lynas completes the construction of its new refining facility in Kalgoorlie, Australia.