💡 Rare Earths Prices and Future Supply 💡
Western governments are starting to pledge meaningful funding for rare earth projects outside of China – but the biggest challenge will be the need for higher prices, as Benchmark's new infographic shows.
In the first quarter of this year, 81% of investment in ex-China rare earth projects came from Western governments - yet at the same time, rare earth prices have fallen to four-year lows.
At current rare earth prices, no planned rare earth projects outside of China can achieve a 15% return on investment, according to Benchmark’s Rare Earth Forecast. Almost 40% of pipeline ex-China rare earth mines require prices of between $75/kg to $85/kg.
“Prices right now are simply too low for the ex-China market. There is great policy support from USA and Australia, but ex-China realised prices need to grow, or the economics of these assets needs to be otherwise augmented for the market to develop, and for critical mineral supply chains to be more geo-politically secure,” said Daan de Jonge, Product Director at Benchmark.
➡️ Read more analysis on Benchmark Source: https://lnkd.in/gBpvuUMq
💲 Benchmark has launched a new Rare Earths Price Assessment to provide independent price transparency and market analysis for this market - talk to our experts to learn more and request a sample report: https://lnkd.in/gvcCDy9V
✅ Benchmark also provides a Rare Earths Forecast with detailed forecasts to 2040, as well as a Rare Earths ESG Report to assess ESG performance at producers globally - speak to our team for more: https://lnkd.in/eTdCDRB4
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