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Neodymium-Praseodymium (NdPr) are two critical rare earth elements integral to the manufacture of rare earth permanent magnets.
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Rare earth permanent magnets are used in electric vehicles, wind turbines and advanced weapon systems.
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China dominates production of rare earths and rare earth magnets accounting for 80% of global production.
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Each Electric Vehicle (EV) requires approximately 1kg to 2kg of NdPr which is used in rare earth magnets forming part of an EVs electric motors.
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EVs expected to grow from 3m to 125m by 2030.
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China is already a gross importer of rare earths and is soon to become a net importer of rare earths as structural supply-side and demand-side change occurs.
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NdPr oxide currently trades at circa US$50kg with market analysts predicting oxide prices to hit between US$60kg and US$150kg after 2020 - Cummins Range is high in NdPr with 22% NdPr enrichment.
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Rare Earth Market Dominated by China – Strategic weakness for the United States of America.
Only meaningful supplier outside of China is Lynas Resources Limited (ASX: LYC) – subject of recent unsuccessful takeover by Wesfarmers Limited (ASX:WES), the other Australian carbonatite.
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Demand for LREE Neodymium and Praseodymium being driven by growth in EV production and renewable energy.
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End-user preferred future supply to come from hard rock western world “sustainable” deposits like Cummins Range.
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Price for NdPr expected to increase.
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Significant structural change underway as China transitions to a net importer of rare earths.
One Stop Shop
Near 80% of rare earths supplied to U.S
Percentage of rare earths supplied to U.S
RAREX LIMITED