Rare earth minerals are making a comeback as Chinese terbium oxide, Chinese dysprosium oxide and Neodymium oxide all recorded gains this month.
Rare earth minerals are elements that include metals such as cadmium, yttrium, and lanthanum. According to AG Metal Miner, the sub-index of these minerals MMI plunged to 16 last year but has been making strides since then. And China has got a lot to do with it.
Chinese terbium oxide, Chinese dysprosium oxide, and Neodymium oxide rose by 2%, 5.6%, and 35% respectively. Such rare earth minerals are crucial components of electronics such as computers, mobile phones, and other gadgets. The Rare Earth Industry Association of China even bared its plans of releasing more reserves to combat price volatility.
The increased demand for gadgets and electronics will only push the momentum for rare earth minerals further. Overall, the prices of neodymium and praseodymium oxide have almost reached an 80% increase. Rare earth minerals are also important in the medical field. Gadolinium is used in x-ray and MRI scanning systems while Yttrium is used in treatment drugs for cancer.
Per Reuters, one of the growth drivers for rare earth is green technology. Neodymium and praseodymium are used in making magnets for electric motors. These magnets are always present in electric vehicles, thus, if the demand for them increases, the demand for the rare earth will also surge.
China has the ability to manufacture electric vehicles given they are major producers of rare earth elements. As the country looks to solve its worsening air pollution, the future of green cars has suddenly become brighter.
China was also partly responsible why prices plummeted before. They halted exports of rare earth minerals in hopes of controlling illegal production in Mongolia. Aside from China, only Western Australia can be considered a major producer of rare earth minerals with over 5,000-ton annual output. Other countries which have the capability to produce them include Russia, India, Brazil, Thailand, Vietnam, and Malaysia.
In a report released by Nasdaq, China has set its output this year with 105,000 tons which are the same with 2016 outputs. On the other hand, there was a slight increase in exports in July, 4,353 tons or 1.5% increase, compared to the numbers in June.
It is safe to say that the fate of rare earth industry is in the hands of China. Their ability to massively produce the said elements can easily influence price change in the market.
Grifols takes its plasma to the Murcia Health Service for €3 million
The Spanish company will supply plasma to the Regional Center for Hemodonation of the Region of Murcia (CRH) for two...
How the regulation of medical cannabis in Brazil has developed
Over the past year, Anvisa has made some decisions that have improved access to medicines based on medical cannabis but...
FORMATION.GG tackles the esports tournament industry, giving everyone a chance to win
The world of esports is fiercely competitive, but the rewards are often limited to elite squads of professional players and...
Tourism revival in Morocco: a study of the three most promising markets
To prepare the resumption of tourism, the Moroccan National Tourism Office is studying all the promising niches. Among other things,...
Banca Progetto signs partnership with DOT
Banca Progetto was founded in 2015 after Nuova Banca Etruria sold 54.212% of the capital of Banca Popolare Lecchese to...
Crypto6 days ago
BEST: Bitpanda’s token benefits strongly from the crypto boom
Featured5 days ago
Sonnedix takes over two photovoltaic plants in the Marche region
Crowdfunding4 days ago
The gaming industry also grew on crowdfunding platforms during 2020
Featured4 days ago
Why did interest rates as measured by the U.S. 10-year treasury note soar over 1% this past week