Will the magnet rare earths prices rise in 2024?

Global plugin electric car sales grew by 108% in 2021 causing a huge spike in EV metal prices. Then in 2022, the growth rate slowed to 56% at a time when supply of most EV metals surged. Finally in 2023, the growth rate slowed further to an estimated 28%, resulting in further price decline for the magnet metals such as neodymium.

Demand for the magnet rare earths in electric motors is driven by multiple sources with electric vehicle sales being a key driver. (90% of EV motors use rare earth magnets)

Daily InvestorNews updates


Source: MP Materials company presentation

Will the magnet rare earths prices rise in 2024?

The answer to this question will largely depend on recovery in China and the global economy driving increased demand for EVs, wind turbines, and other magnets used in various industrial applications. Given the most recent trend globally has been towards future interest rate decreases (notably in the USA and China), it bodes well for a recovering consumer and hence demand. This may take a good part of 2024 to flow through with excess inventories across many sectors still needing to be worked off. If we get a strong pickup in EV demand (>40% YoY increase) in 2024, then the magnet rare earths sector woes could soon disappear.

China’s December 2023 EV sales give some hope as they jumped to a record 945,000 units, achieving a superb 47% YoY growth rate.

Lynas Rare Earths Ltd. (ASX: LYC) (“Lynas”) update

The big recent Lynas news (announced December 7, 2023) is that the first feed of material from the Mt Weld Mine has been introduced into the new Kalgoorlie Rare Earths Processing Facility in Western Australia, leading to first production and ramp-up of the Facility. A great achievement for Lynas, especially given that the Kalgoorlie Rare Earths Processing Facility is Australia’s first value-added rare earths processing facility. Lynas stated:

The Lynas Malaysia plant is currently shutdown as works to increase downstream processing capacity are completed. Production will recommence in January 2024. Mixed Rare



Contact: Daniel Wong

Phone: +86-18072358327

Tel: +86-18072358327


Add: YIWU County, Zhejiang Province, China

Leave a message