Rare Earth Metals Leaching Chemicals Market

The rare earth metals leaching chemicals market is estimated to be USD 417 million in 2021 and is projected to reach USD 749 million by 2027, at a CAGR of 7.7% between 2022 and 2027. The major driving factors for the growth of the rare earth metals leaching chemicals market are the rising demand for electric vehicles, discovery of new rare earth deposits, and increasing incentives by governments for renewable energy systems.

Attractive Opportunities in the Rare Earth Metals Leaching Chemicals Market

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Rare earth metals leaching chemicals market Dynamics

Driver: Rising demand for electric vehicles

Rare earth metals play a crucial role in electric vehicles (EVs), finding applications in components like motors, batteries, and electronic systems. According to the International Energy Agency (IEA), approximately 0.5 kg of rare earth elements are used in the production of a single electric vehicle. Notably, elements like neodymium and dysprosium enhance the performance of electric motor magnets, improving power-to-weight ratios, while cerium and lanthanum serve as catalysts in batteries to enhance their efficiency and lifespan. Rare earth metals are also instrumental in enhancing the performance and reliability of various electronic systems in EVs, including sensors and control systems. This applies to both electric vehicles and hybrid electric vehicles (HEVs).

The rare earth metals market is further propelled by changing regulations and government policies supporting electric vehicle adoption. During the COVID-19 pandemic, European EV sales surged by 137%, driven by incentives offered under green recovery funds. In terms of sales, Europe has surpassed China and is poised for significant growth. In 2021, global EV sales, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), reached 18.6 million units, marking a remarkable 166.6% year-on-year increase compared to 2020. The increasing global demand for electric vehicles is a key driver for the rare earth metals market, consequently increasing the demand for rare earth metals leaching chemicals.

Restraint: Environmental impacts of leaching chemicals for rare earth metals

Environmental concerns surrounding leaching chemicals used in rare earth metal production have prompted the imposition of regulations in various regions. These chemicals generate substantial toxic waste, contributing to global water pollution and ecological imbalances when disposed of improperly. The combination of rare earth metals with these chemicals contaminates air, water, and soil. A single ton of rare earth metals yields an alarming 2,000 tons of toxic waste, along with dust, waste gas, wastewater, and radioactive residue, resulting in severe health and environmental consequences. This cycle of pollution disrupts the water system, affecting both humans and aquatic life. Consequently, regulations have been introduced worldwide to address these issues, posing challenges to the rare earth metals market.

Opportunities: Rare earth metals recovery from secondary sources

Recovering rare earth metals from secondary sources, known as recycling, involves extracting these metals from discarded items like electronics, catalytic converters, and industrial waste. This approach is often more cost-effective and environmentally friendly than mining for new rare earth metals. One significant source of rare earth metal recovery is from discarded permanent magnets like those found in electric motors, wind turbines, and headphones. Additionally, extracting rare earth elements from coal samples, using diluted mineral acid solutions, has proven effective due to its high concentration and leaching recovery rates. This method reduces energy requirements compared to conventional mining and lessens the environmental impact.

Recovering rare earth metals from secondary sources also reduces dependence on China, a major supplier. For example, recycling neodymium and dysprosium from discarded wind turbine magnets can lessen the need for fresh mining of these metals in China, as they are crucial components in wind turbines. This shift helps reduce industry dependency on Chinese rare earth metals and lowers the environmental footprint while enhancing resource efficiency.

Challenges:  Safety of workers in rare earth elements mining

Extreme caution is essential in rare earth metals mining due to the presence of hazardous compounds, posing health risks to workers. Exposure to leaching chemicals can lead to skin irritation and harm respiratory, nervous, and cardiovascular systems. Long-term exposure to harmful chemicals and toxic waste can even result in severe illnesses like cancer. Many governments have addressed health concerns related to rare earth metal mining. China, for instance, acknowledged the presence of "cancer villages" where mining-related pollution has caused a disproportionate number of cancer cases. In Yulin, a Chinese region with rare earth mining, farmers protested in 2018 as they observed adverse effects on their crops and livelihoods due to rare earth element extraction.

ECOSYSTEM

By Type, Nitric Acid segment accounted for the second highest market share in 2021

Nitric acid plays a pivotal role in the leaching process for extracting rare earth elements (REES) from their mineral source by disrupting their chemical bonds. This strong mineral acid efficiently dissolves rare earth elements, transforming them from solid to aqueous form through a chemical reaction. Monazite, a phosphate-rich mineral containing REES, is often subjected to nitric acid leaching. The process's effectiveness is enhanced by adjusting factors like nitric acid concentration, temperature, and leaching duration as needed. Additionally, nitric acid can be combined with other acids, such as hydrochloric acid and sulfuric acid, to improve the leaching efficiency when dealing with specific rare earth element-bearing minerals.

Asia Pacific is projected to account for the highest CAGR in the rare earth metals leaching chemicals market during the forecast period

APAC is estimated to be the largest market for rare earth metals leaching chemicals  and is also projected to register the fastest CAGR of 7.9% during the forecast period. China is expected to account for the largest share of the market in APAC till 2028. China’s significant industrial growth and urbanization are mainly driving the rare earth metals leaching chemicals market in the country. The emergence of China as a global manufacturing hub has increased the demand for rare earth metals leaching chemicals.

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Key Market Players

Rare earth metals leaching chemicals market comprises key manufacturers such as BASF SE (Germany), OxyChem (US), Olin Corporation (US), Aurubis (Germany), Solvay S. A. (Belgium), UBE Corporation (Japan), LANXESS AG (Germany), Westlake Chemical Partners (US), Gujarat Alkalies and Chemical Limited (GACL) (India), Gujarat State Fertilizers & Chemicals Limited (GSFC) (India) and others. Expansions, acquisitions, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the rare earth metals leaching chemicals market.

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Scope of the Report

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This research report categorizes the global rare earth metals leaching chemicals market on the basis of Type and Region.

Rare earth metals leaching chemicals market, By Type

• Hydrochloric Acid
• Sulfuric Acid
• Nitric Acid
• Ammonium Sulphate
• Citric acid
• Others

RARE EARTH METALS LEACHING CHEMICALS market, By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In January 2023, Against the background of significantly weaker earnings in Europe, especially in Germany, as well as the deteriorating framework conditions in the region, BASF SE initiated a cost savings program focusing on Europe and particularly Germany to be implemented from 2023 to 2024.
• In December 2022, BASF SE and StePac partnered to develop sustainable packaging for the shelf-life extension of fresh produce.
• In October 2022, Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (NYSE: OXY), and Natural Resource Partners L.P. (NRP) entered into a CO2 sequestration agreement. The agreement provides OLCV with the exclusive rights to develop a CO2 sequestration hub on approximately 65,000 acres of pore space controlled by NRP.
• In August 2022, OxyChem entered into a definitive agreement to sell non-strategic land in the Permian Basin to an entity of Colgate Energy Partners III, LLC for USD 508 million, subject to closing adjustments to reflect an effective date of April 1, 2021.
• In December 2022, Intersect Capital LLC acquired 1,964 shares of Olin Corporation.
• In July 2021, Olin Corporation entered into an agreement with ASHTA Chemicals, Inc. to buy and sell chlorine produced at ASHTA's Ohio facility in the US.
• In May 2020, Aurubis acquired Metallo Group Holding, a Belgian-Spanish recycling company, for a purchase price of USD 449.3 million. Metallo Group Holding was owned by investment firm TowerBrook Capital Partners.

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