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5 MARKET SPOTLIGHT A D V A N C E D
M A T E R I A L S
&
P R O C E S S E S | F E B R U A R Y
2 0 1 6
FEEDBACK
WORLD RARE EARTHS DEMAND TO
REACH $4.5 BILLION BY 2019
World Rare Earths, a new study
from The Freedonia Group Inc., Cleve-
land, reports that global demand for
rare earths is expected to increase 3.5%
per year to 149,500 metric tons in 2019,
valued at $4.5 billion. The largest in-
creases are forecast for the permanent
magnet segment, boosted by expand-
ing production of advanced neodym-
ium magnets for applications such as
wind turbines and hybrid and electric
vehicles. Rising output of nickel-metal
hydride batteries is also expected to
fuel demand. In addition, upgrades to
oil refining sectors in emerging coun-
tries are projected to boost global cata-
lytic cracking capacity, supporting pro-
duction of fluid cracking catalysts and
an associated demand for lanthanum
and cerium. Increased production of
steel, motor vehicles, and electronics is
expected to drive rare earths consump-
tion as well.
Extreme pricing volatility (partic-
ularly during 2010-2012 when China
cut export quotas for the metals) has
prompted the use of substitute mate-
rials and spurred development of cata-
lysts and other products designed with
low rare earth requirements. While de-
pressed rare earth prices will promote a
shift back to rare earth-based products,
ongoing wariness of severe price shifts
continues to restrain overall market ad-
vances, say analysts.
China will remain the leading con-
sumer of rare earths, accounting for
over two-thirds of the global demand
in 2019. Japan will remain the second
biggest global market, benefiting from
a large domestic electronics manu-
facturing sector and robust demand
for rare earths in battery, magnet, and
polishing powder production. India is
projected to hold the fastest gains of
any major market worldwide due to
rising domestic production of motor
vehicles and metal alloys, as well as
expanding catalytic cracking capacity,
which are expected to boost rare earths
consumption. India is also developing
local production of rare earth magnets,
although this market will remain small
in the near term.
China will continue to account for
the majority of rare earths mining out-
put through 2019, although its share of
total production is expected to drop as
a number of new projects in Canada,
Tanzania, South Africa, and other coun-
tries begin commercial production. Ma-
jor output increases are also expected
in Australia as Lynas continues to ramp
up production following capacity ex-
pansions. For more information, visit
.
KUDOS TO ABKOWITZ
The September article “Did Al Gore In-
vent the TitaniumSix Four?”was amost
interesting history about titaniumalloy
development. I found the Al Gore title
spoof provocative and gutsy. I amalso very
pleased that Stan Abkowitz is around to tell
themetallurgical side of the story.
William R. Jones, FASM
CRIME AND PUNISHMENT
TheOctober editorial column on “Welcom-
ing Failure”waswell taken, aswe should
all learn frompast errors. Youmight have
mentioned the case of peoplewho knowof
a defect in their product and fail to fix it. The
GM ignition switch problemcomes tomind
as a recent example. The company knew
peoplewere being killed andmaimed but
did nothing. This iswhere the court expert
comes in, to help punish the bad actors in
someway—money, not jail time.
Charles Dohogne
WISH COMES TRUE
Thank you for all the “Metallurgy Lane”
articles about our materials technology
history. I trust that the author or ASM will
eventually publish a compilation. When
you do, I will be interested in obtaining a
copy.
Roger Austin
[The ASMTechnical Books Committee
recently approved a proposal for a historical
volume based on Charles Simcoe’s popular
“Metallurgy Lane” series. Publication is
expected in late 2016. —Eds.]
CORRECTION
TheNovember/December article “Materials
SustainablilityApp Serves as Teaching Tool”
failed to recognizeoneof the authors, Brittany
Palac.We apologize for theomission.—Eds.
We welcome all comments
and suggestions. Send letters to
.
World Rare Earths Demand by Market, 2014
(125,900) metric tons
Metal processing 12.2%
Battery alloys 11.1%
FCCs 12.9%
Glass, polishing,
ceramics 18.0%
Permanent magnets 27.4%
Other 4.7%
Phosphors 6.0%
Autocatalysts 7.6%
Source: The Freedonia Group Inc.