China’s Rare Earth Market Dominance at Risk of Decline by 2035

A recent study predicts a significant decline in China’s dominance of the rare earth market, forecasting a decrease from 62% to 28% by 2035 due to emerging competitors in Africa, South America, Australia, and Greenland. By 2040, China’s market share may fall to 23%, threatening its longstanding position.

A recent study published in the journal Chinese Rare Earths suggests that China’s dominance in the rare earth market is at risk of significant decline. Researchers from the CAS Ganjiang Innovation Academy indicate that China’s current share of 62 percent in rare earth materials could plummet to 28 percent by 2035. This decline is attributed to the emergence of new mining sources in regions including Africa, South America, Australia, and Greenland.

The study illustrates a potential further decrease in China’s market share to 23 percent by 2040, leading to a diminished influence in the global industry. Researchers foresee fundamental shifts resulting from the opening of mining frontiers in various regions. Even China’s established hold on heavy rare earths in southern China may be challenged by emerging projects in Greenland and South America.

Led by experts in Ganzhou, Jiangxi province, where a significant portion of the world’s rare earth production occurs, the study emphasizes the transformative changes that could reshape the sector. The implications of this research highlight a looming alteration in the dynamics of the global rare earth industry due to the rise of alternative sources of supply.

In conclusion, the forecasted decline of China’s share in the rare earth market signals a pivotal shift in the industry. With emerging competitors in Africa, South America, and Australia, alongside the potential impact of projects in Greenland, China’s dominance may erode significantly over the next decade. This study underscores the evolving landscape of rare earth materials and the necessity for strategic adaptations in response to new market realities.

Original Source: www.scmp.com