Rare earths are essential in a wide variety of today’s technologies, from smartphone cameras to defense systems.
The group of critical metals, which includes neodymium and praseodymium, has also seen increasing demand from the ever-expanding electric vehicle industry in recent years. “The simplest engineering solution for a drive train on an electric vehicle is to use a permanent magnet synchronous motor, and those permanent magnets are made of rare earth elements (REEs),” Jon Hykawy of Stormcrow Capital explained to the Investing News Network in an interview.
China is by far the world’s top producer of rare earths and holds the largest rare earths reserves. The country’s monopoly on the rare earths market has led other nations such as the US, Canada and Australia to incentivize rare earths mining and processing, as well as the production of value-added REE products, in order to bolster their own supply chains.
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