China’s rare earth exports to the US could fall by a third as global demand drops 5 per cent this year amid coronavirus, analysts say
- ‘As a major consumer of China’s lanthanum, the US oil refining industry is leading the demand fall,’ says Adamas Intelligence managing director
- This year has seen a large decline in demand for rare-earth magnets as the pandemic has crushed demand for things like electric cars and smartphones
“We expect to see weak rare earths demand propagate through the rest of 2020, particularly those used in ceramics, glass and catalyst applications,” said David Merriman, a manager specialising in battery and electric vehicle materials at consultancy Roskill Information Services. “Even demand from magnet applications is expected to fall 4.5 per cent this year.”
Global consumption of neodymium magnets may drop 9.3 per cent this year after growing at an average annual rate of 6.4 per cent, Adamas Intelligence has forecast.
However, constrained by an expected under-supply from 2022 onward, Adamas forecasts global shortages of rare earths used in the magnets will reach 48,000 tonnes annually by 2030, enough to make 25 million electric vehicle motors.
The strategic metals research firm attributed this year’s decline to the health pandemic’s impact on demand for products such as electric cars, smartphones and wind generators.
Neodymium magnets are the most widely used and strongest type of permanent magnet. Besides iron, they contain rare earth elements neodymium, praseodymium, dysprosium and terbium.
Stunted economic activity in the US caused by its serious coronavirus outbreak saw China’s rare earth exports to the nation tumble 69 per cent year-on-year in July.