Although rare earth prices have declined in recent months, they have not affected the market supply of permanent magnets. Benefiting from the development of emerging industries such as new energy vehicles, wind power generation, and variable frequency home appliances, the demand for rare earth permanent magnetic materials has grown rapidly. According to calculations, it is expected that the demand for rare earth permanent magnets in China will increase by approximately 15.2%.
Driven by the demand for rare earth permanent magnets, it is expected that the demand for rare earths in China will maintain a growth rate of 7.8% in the next few years. From 2017 to 2020, the consumption of rare earths (reduced oxides) is expected to reach 109,000 tons and 118,000 tons, respectively. 127,000 tons and 137,000 tons. As the downstream consumption of rare earth continues to increase, driven by strong demand, the price of rare earth after inventory reduction will also be expected to oscillate upwards.http://www.greatmagtech.com/rare-earth-magnets/
In fact, the development of emerging industries and rare earth industries complement each other. Since the State Council’s “13th Five-Year Plan” National Strategic Emerging Industries Development Plan was released in November 2016, under the backdrop of China’s economic development entering a new normal, the growth rate of strategic emerging industries has rebounded and the industrial structure has been continuously optimized. Investment continues to heat up, and industrial innovation continues to emerge as an important force for the stable operation of the macro economy.
Under the background of the country’s transformation and upgrading of its manufacturing industries and its economic development in the new normal, key strategic materials will become the top priority in the new stage, and the industry is expected to usher in continuous breakthroughs. Among them, rare earth magnetic materials, aerospace equipment materials, etc. have become the key breakthrough targets for the “13th Five-Year Plan”, and industrialization and localization will be accelerated.
In recent years, the national strategic position of the new materials industry has also been continuously improved. Through the "China Manufacturing 2025" program document, the "New Materials Industry Development Guide" guidance document and various industrial planning and development task planning, the country has built a new material policy pyramid, giving new Material industry chain, comprehensive guidance. Among them, advanced basic materials, key strategic materials, and cutting-edge new materials have become key development directions.http://www.greatmagtech.com/rare-earth-magnets/
As one of the new materials, rare earth, in the future development of China's seven strategic emerging industries, almost every industry must be used, there is a demand. And this demand is often irreplaceable. In other words, the development of new industries will add wings to the rare earth industry, because increasing the effective supply will further activate the demand for rare earths and ensure the important role of rare earths in the sustained economic development of our country.
From an industry perspective, the future rare earth industry will become a pillar industry in energy conservation and environmental protection. Rare earths have important applications in exhaust gas purification, waste treatment, clean production and other fields. In the high-end manufacturing industry, rare earths will upgrade the level of advanced rail transportation equipment and enlarge and strengthen smart manufacturing equipment. The future goal is to promote intelligent, precise and green manufacturing. High-speed rail will become a new application for the development of rare earths. The rare earth permanent magnet motor will increase the efficiency and greatly reduce the energy consumption. The rare earth magnesium and rare earth aluminum alloys can be used in high-speed rail cars, doors and windows and other structural parts.
From the point of view of demand, the demand for rare earth materials in the emerging fields has grown steadily, with NdFeB magnetic materials being the focus. New energy vehicles are expected to bring about 4,500 to 7,500 tons of incremental space for NdFeB by 2020. The development of new energy vehicles should be the major trend in the future, and will drive the vigorous development of a large number of related industries in the rare earth industry. Especially for hybrid vehicles, electric vehicles, and fuel cell vehicles, the miniaturization of high-powered drive motors is a must, and these motors are now using a large amount of rare earth.