Global Rare Earth Recycling Market Extends at a Healthy CAGR of 7.0% by 2031

Introduction

Rare earth metals such as the lanthanide family, scandium, and yttrium are required for permanent magnets, electric cars, cell phones, and wind turbines. The elements must be purified before use since they occur naturally as mixtures in ores. However, extracting and sorting the mineral ore is complex and energy- and waste-intensive. These toxins have become an environmental burden. Despite having the potential for reuse, most items are discarded after a single use. Recycling goods containing rare earth provides domestic manufacturers with a dependable source of rare earth resources while reducing waste.

Market Dynamics

Environmental Impact of Mining Rare Earth Metals Drives the Global Market

Mining is the process through which rare earth metals are extracted. However, mining has various disadvantages, including being expensive and inefficient due to the vast area required to remove even a small quantity of rare earth metals. The extraction process also generates a substantial amount of radioactive and toxic waste, severely impacting the environment. As a result of rare-earth mining pollution, agriculturally unusable land and contaminated water sources have formed. Further, the presence of metals in an ecosystem can be lethal to organisms. Thus, the mining and separating of the mineral ore are difficult, energy- and waste-intensive processes. Recycling components processed into materials is an interesting alternative to mining; hence, demand for recycling these elements is predicted to expand over the forecast period.

Rising Adoption of Electric Vehicles and Wind Energy Creates Tremendous Opportunities

The rising demand for electric cars in recent years can be ascribed to customers' and manufacturers' growing environmental consciousness. It is anticipated that this need will soon increase the demand for and production of electric cars. Soon, international conventions and conferences such as the Kyoto Protocol, the Montreal Protocol, and the Paris Agreement are anticipated to increase the need for ultracapacitors, rechargeable batteries, and rare earth metals. The emphasis on renewable energy sources for power generation, such as wind, solar, and hydropower, to reduce carbon emissions has led to a strong demand for rare earth metals. In 2020, the worldwide market for rare earth metals for permanent magnets in wind turbines totaled seven thousand tonnes. The worldwide wind industry added 93 GW of new capacity in 2020, a 53% increase from the previous year. However, more must be done to ensure that the globe reaches net zero emissions by 2050.

Regional Analysis

Europe is the most significant shareholder in the global rare earth recycling market and is expected to grow at a CAGR of 5.06% during the forecast period. The expansion of the European market is attributable to the rising demand for rare earth minerals and recycled materials used to manufacture high-tech goods such as smartphones and wind turbines. Due to their rising use in magnets, metallurgy, catalysts, glass, and ceramics, demand for rare earth in Europe is expected to rise. In Europe, the automotive industry is the largest end-user of rare earth. The Organization for International Cooperation on Automobiles (OICA) projects that in 2021, with a production share of 22.3%. Europe surpassed North America as the second-largest auto producer in the world, consequently driving market expansion.

North America is anticipated to grow at a CAGR of 5.84% over the forecast period. The region's expanding vehicle industry is boosting the need for rare earth elements. Tesla, a renowned American maker of electric vehicles, said in 2021 that neodymium would be utilized in its Model 3 Long Range automobiles. This step is likely to enhance neodymium demand throughout the forecasted timeframe. Due to the usage of rare earth elements in car exhaust systems to combat air pollution, the North American market is driving global expansion during the review period. It is predicted that consumer electronics and nuclear power will boost the demand for rare earth over the forecast period. With more than 30 percent of the world's energy derived from nuclear power, the United States leads the world. In addition, according to the World Nuclear Association, the government is developing two nuclear reactors. The rising demand for nuclear reactors is anticipated to stimulate market growth.

Key Highlights

• The global rare earth recycling market was valued at USD 480 million in 2022. It is estimated to reach USD 882 million by 2031, growing at a CAGR of 7.0% during the forecast period (2023–2031).
• Based on type, the global rare earth recycling market is divided into light rare earth recycling and medium and heavy rare earth recycling. The light rare earth recycling segment is the highest contributor to the market and is expected to grow at a CAGR of 7.15% during the forecast period.
• Based on application, the global rare earth recycling market is segmented into glass, permanent magnets, catalysts, ceramics, phosphor, alloy manufacturing, and others. The permanent magnets segment owns the highest market share and is expected to grow at a CAGR of 8.09% over the forecast period.
• Europe is the most significant shareholder in the global rare earth recycling market and is expected to grow at a CAGR of 5.06% during the forecast period.

Competitive Players

1. Solvay
2. Hitachi Metals
3. REEcycle Inc
4. Jiangsu Huahong Technology Co. Ltd
5. Lynas
6. GanZhou QianDong Rare Earths Group Co., Ltd.
7. Mitsubishi Chemical Corporation
8. Nissan Motor Co Ltd
9. Geomega Resources
10. Shenghe Resources Holdings Co. Ltd.

Recent Developments

• September 2022- Solvay announced intentions to develop its rare earth facilities in La Rochelle, France, to enter the rare earth permanent magnets value chain in Europe. Solvay is already active in separating and recycling rare earth for captive use. With this investment, the group is ambitious to create a powerful rare earth hub in Europe in the coming years.
• January 2023- Solvay will extend and modify the current rare earth processing operation in La Rochelle, France, by adding the manufacture of separated rare earth oxides for permanent magnets. The company is investing "tens of millions of euros," and this processing unit will supply material to magnet makers for EVs and wind turbines.

Segmentation

1. By Type
   1. Light Rare Earth Recycling
   2. Medium and Heavy Rare Earth Recycling
2. By Applications
   1. Permanent Magnets
   2. Catalyst
   3. Glass
   4. Ceramics
   5. Phosphor
   6. Alloy Manufacturing
   7. Others