The increasing demand for automobiles enables the manufacturers to maintain the supply-demand balance, thus increasing the production. The sales of the overall automotive industry increased by 3% from 2016 to 2017 as per the data published by OICA. Neodymium and praseodymium based rare earth permanent magnets are majorly used in the manufacturing of batteries.
Rising demand for electric vehicles to reduce CO 2 emissions is expected to propel the use of permanent magnets in the production of batteries. Cerium is widely used as a catalyst in catalytic converters of motor vehicles while neodymium & praseodymium are used in the production of batteries for electric vehicles.Īs per the International Energy Agency, the global stock of electric cars was over 5 million in 2018 with more than a 63% increase from 2017. The market is driven by the increasing demand for these products in the manufacturing of magnets & catalysts for the automotive industry. Cerium, neodymium, lanthanum, praseodymium, yttrium, and dysprosium are the most commonly used rare earth elements. The global rare earth elements market size was valued at USD 2.80 billion in 2018 and is estimated to witness a CAGR of 10.4% from 2019 to 2025.