French version is available in the PDF version

The topic of rare earth elements (REEs) falls within a threefold trend: 1) the relocation of numerous industries following the Covid pandemic and the resulting disruptions to supply chains, 2) the growing awareness among political bodies and the public regarding climate issues and the response through the energy transition, which necessitates the development of renewable energy sources (wind turbines, electric vehicles), and 3) the need to streamline and secure the supply of rare earth-derived products to facilitate this energy transition.

SUMMARY

Rare earth elements have essential properties for renewable energy and defense applications, which are difficult to replicate with other materials.

• Total demand is expected to grow by 4-5% annually, with a growth rate twice as high (8-10%) for applications related to permanent magnets.

• The Western world is almost entirely dependent on China for the transformation phases up to the final product.

• A major geopolitical issue with a strong American and European desire to secure supplies (financing, subsidies, partnerships).

• Significant entry barriers, favoring existing players.

• A lack of transparency and liquidity in pricing.