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EV rise likely to put pressure on rare earth prices

January 15, 2021


Major Chinese rare earths producer Southern Rare Earth has raised prices for heavy rare earths (HREE) terbium, dysprosium, gadolinium and holmium “in response to tight spot market availability and firmer demand from the magnet sector,” says Argus.

Companies often divide the 17 rare earths into heavy (HREE) and light (LREE) rare earths based on atomic weight — but these are not formal groupings or applied consistently across the industry, according to Geoscience Australia.

HREE are used in the permanent magnets required for the motors in electric vehicles and wind turbines.

As these sectors boom, so will HREE.

Tim Buckley from the Institute for Energy Economics and Financial Analysis says rare earths – alongside all the other battery metals — will see huge demand growth as the EV industry grows. This will spur a supply response.

“Just think how many Tesla mega factories are going to be added,” he says.

 [Reuben Adams]

More: EV sector demand is already lifting heavy rare earth prices higher

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