Rare Earths - Magnet metals for Drones, Turbines and Automobiles
Rare Earth Metals
Supply vs. demand
Magnet metals for Drones, Turbines and Automobiles
Neodymium and Praseodymium ‘NdPr’
Demand:
- Fundamental to green technology application, rare earth oxide consumption is benefiting expanding ‘high-tech’ markets.
- Weight-saving potential of permanent magnets (PMs) is creating the biggest blind spot in the raw metals EV supply chain for rare earth elements.
- NdPr-based (neodymium-praseodymium) motors enable 15-20% battery capacity savings in Li-ion EVs to enhance driving range and usability.
- ~600kg/MW rare earth requirement is creating significant wind turbine demand as global capacity forecast to rise by up to 1.9TW by 2050.
- Unprecedented role of rare earth PMs in global miniaturisation.
- International Federation of Robotics forecast 1.7m new robots transforming global factories by 2020.
- NdPr permanent magnets will be essential in growing global drone market – a US$100m market opportunity.
Supply:
- Industry consolidation and broad upgrading of production quotas have mitigated rife illegal mining across China, providing improved global supply clarity and price stability, while limiting environmentally degrading practises.
- Global trend of ethical metal sourcing is highlighting the substantial cost of rehabilitating unsanctioned activity, estimated at $30bn.
- Chinese government environmentally-focused legislation is restricting oversupply, drawing down swollen inventories and bringing the market into balance.
- China inflection point as net importer expected 2019/2020.
Companies referenced within this note:
- Peak Resources (PEK AU)
- Hastings Technology Metals (HAS AU)
- Greenland Minerals (GGG AU)
*SP Angel acts a Nomad and broker to Mkango Resources, African Battery Metals, Altus Strategies, ARC Minerals, IronRidge Resources, Phoenix Global Mining and Strategic Minerals.
Analysts
John Meyer – 0203 470 0490
Simon Beardsmore – 0203 470 0484
Sergey Raevskiy – 0203 470 0474
James Mills - 0203 470 0486
Sales
Richard Parlons – 0203 470 0472
Jonathan Williams – 0203 470 0471
Abagail Wayne – 0203 470 0534
Rob Rees – 0203 470 0535
SP Angel
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+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.
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