Rare Earth Metals Leaching Chemicals Market by Type (Hydrochloric Acid, Sulfuric Acid, Nitric Acid, Ammonium Sulfate, Citric Acid), and Region (North America, Europe, Asia Pacific, Middle East and Africa, South America) - Global Forecast to 2027
The rare earth metals leaching chemicals market is estimated to be USD 417 million in 2021 and is projected to reach USD 749 million by 2027, at a CAGR of 7.7% between 2022 and 2027. The major driving factors for the growth of the rare earth metals leaching chemicals market are the rising demand for electric vehicles, discovery of new rare earth deposits, and increasing incentives by governments for renewable energy systems.
Attractive Opportunities in the Rare Earth Metals Leaching Chemicals Market
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Rare earth metals leaching chemicals market Dynamics
Driver: Rising demand for electric vehicles
Rare earth metals play a crucial role in electric vehicles (EVs), finding applications in components like motors, batteries, and electronic systems. According to the International Energy Agency (IEA), approximately 0.5 kg of rare earth elements are used in the production of a single electric vehicle. Notably, elements like neodymium and dysprosium enhance the performance of electric motor magnets, improving power-to-weight ratios, while cerium and lanthanum serve as catalysts in batteries to enhance their efficiency and lifespan. Rare earth metals are also instrumental in enhancing the performance and reliability of various electronic systems in EVs, including sensors and control systems. This applies to both electric vehicles and hybrid electric vehicles (HEVs).
The rare earth metals market is further propelled by changing regulations and government policies supporting electric vehicle adoption. During the COVID-19 pandemic, European EV sales surged by 137%, driven by incentives offered under green recovery funds. In terms of sales, Europe has surpassed China and is poised for significant growth. In 2021, global EV sales, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), reached 18.6 million units, marking a remarkable 166.6% year-on-year increase compared to 2020. The increasing global demand for electric vehicles is a key driver for the rare earth metals market, consequently increasing the demand for rare earth metals leaching chemicals.
Restraint: Environmental impacts of leaching chemicals for rare earth metals
Environmental concerns surrounding leaching chemicals used in rare earth metal production have prompted the imposition of regulations in various regions. These chemicals generate substantial toxic waste, contributing to global water pollution and ecological imbalances when disposed of improperly. The combination of rare earth metals with these chemicals contaminates air, water, and soil. A single ton of rare earth metals yields an alarming 2,000 tons of toxic waste, along with dust, waste gas, wastewater, and radioactive residue, resulting in severe health and environmental consequences. This cycle of pollution disrupts the water system, affecting both humans and aquatic life. Consequently, regulations have been introduced worldwide to address these issues, posing challenges to the rare earth metals market.
Opportunities: Rare earth metals recovery from secondary sources
Recovering rare earth metals from secondary sources, known as recycling, involves extracting these metals from discarded items like electronics, catalytic converters, and industrial waste. This approach is often more cost-effective and environmentally friendly than mining for new rare earth metals. One significant source of rare earth metal recovery is from discarded permanent magnets like those found in electric motors, wind turbines, and headphones. Additionally, extracting rare earth elements from coal samples, using diluted mineral acid solutions, has proven effective due to its high concentration and leaching recovery rates. This method reduces energy requirements compared to conventional mining and lessens the environmental impact.
Recovering rare earth metals from secondary sources also reduces dependence on China, a major supplier. For example, recycling neodymium and dysprosium from discarded wind turbine magnets can lessen the need for fresh mining of these metals in China, as they are crucial components in wind turbines. This shift helps reduce industry dependency on Chinese rare earth metals and lowers the environmental footprint while enhancing resource efficiency.
Challenges: Safety of workers in rare earth elements mining
Extreme caution is essential in rare earth metals mining due to the presence of hazardous compounds, posing health risks to workers. Exposure to leaching chemicals can lead to skin irritation and harm respiratory, nervous, and cardiovascular systems. Long-term exposure to harmful chemicals and toxic waste can even result in severe illnesses like cancer. Many governments have addressed health concerns related to rare earth metal mining. China, for instance, acknowledged the presence of "cancer villages" where mining-related pollution has caused a disproportionate number of cancer cases. In Yulin, a Chinese region with rare earth mining, farmers protested in 2018 as they observed adverse effects on their crops and livelihoods due to rare earth element extraction.
ECOSYSTEM
By Type, Nitric Acid segment accounted for the second highest market share in 2021
Nitric acid plays a pivotal role in the leaching process for extracting rare earth elements (REES) from their mineral source by disrupting their chemical bonds. This strong mineral acid efficiently dissolves rare earth elements, transforming them from solid to aqueous form through a chemical reaction. Monazite, a phosphate-rich mineral containing REES, is often subjected to nitric acid leaching. The process's effectiveness is enhanced by adjusting factors like nitric acid concentration, temperature, and leaching duration as needed. Additionally, nitric acid can be combined with other acids, such as hydrochloric acid and sulfuric acid, to improve the leaching efficiency when dealing with specific rare earth element-bearing minerals.
Asia Pacific is projected to account for the highest CAGR in the rare earth metals leaching chemicals market during the forecast period
APAC is estimated to be the largest market for rare earth metals leaching chemicals and is also projected to register the fastest CAGR of 7.9% during the forecast period. China is expected to account for the largest share of the market in APAC till 2028. China’s significant industrial growth and urbanization are mainly driving the rare earth metals leaching chemicals market in the country. The emergence of China as a global manufacturing hub has increased the demand for rare earth metals leaching chemicals.
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Key Market Players
Rare earth metals leaching chemicals market comprises key manufacturers such as BASF SE (Germany), OxyChem (US), Olin Corporation (US), Aurubis (Germany), Solvay S. A. (Belgium), UBE Corporation (Japan), LANXESS AG (Germany), Westlake Chemical Partners (US), Gujarat Alkalies and Chemical Limited (GACL) (India), Gujarat State Fertilizers & Chemicals Limited (GSFC) (India) and others. Expansions, acquisitions, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the rare earth metals leaching chemicals market.
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- Latest News, Updates & Trend analysis
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Report Metric |
Details |
|
Years Considered |
2020–2027 |
|
Base year |
2021 |
|
Forecast period |
2022–2027 |
|
Unit considered |
Value (USD Million) |
|
Segments |
Type and Region |
|
Regions |
North America, Europe, Asia-Pacific, Middle East and Africa, and South America |
|
Companies |
BASF SE (Germany), OxyChem (US), Olin Corporation (US), Aurubis (Germany), Solvay S. A. (Belgium), UBE Corporation (Japan), LANXESS AG (Germany), Westlake Chemical Partners (US), Gujarat Alkalies and Chemical Limited (GACL) (India), Gujarat State Fertilizers & Chemicals Limited (GSFC) (India), among others are covered in the rare earth metals leaching chemicals market. |
This research report categorizes the global rare earth metals leaching chemicals market on the basis of Type and Region.
Rare earth metals leaching chemicals market, By Type
- Hydrochloric Acid
- Sulfuric Acid
- Nitric Acid
- Ammonium Sulphate
- Citric acid
- Others
RARE EARTH METALS LEACHING CHEMICALS market, By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
The market has been further analyzed for the key countries in each of these regions.
Recent Developments
- In January 2023, Against the background of significantly weaker earnings in Europe, especially in Germany, as well as the deteriorating framework conditions in the region, BASF SE initiated a cost savings program focusing on Europe and particularly Germany to be implemented from 2023 to 2024.
- In December 2022, BASF SE and StePac partnered to develop sustainable packaging for the shelf-life extension of fresh produce.
- In October 2022, Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (NYSE: OXY), and Natural Resource Partners L.P. (NRP) entered into a CO2 sequestration agreement. The agreement provides OLCV with the exclusive rights to develop a CO2 sequestration hub on approximately 65,000 acres of pore space controlled by NRP.
- In August 2022, OxyChem entered into a definitive agreement to sell non-strategic land in the Permian Basin to an entity of Colgate Energy Partners III, LLC for USD 508 million, subject to closing adjustments to reflect an effective date of April 1, 2021.
- In December 2022, Intersect Capital LLC acquired 1,964 shares of Olin Corporation.
- In July 2021, Olin Corporation entered into an agreement with ASHTA Chemicals, Inc. to buy and sell chlorine produced at ASHTA's Ohio facility in the US.
- In May 2020, Aurubis acquired Metallo Group Holding, a Belgian-Spanish recycling company, for a purchase price of USD 449.3 million. Metallo Group Holding was owned by investment firm TowerBrook Capital Partners.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the rare earth metals leaching chemicals market?
The rare earth metals leaching chemicals market is driven by rising demand for electric vehicles, discovery of new rare earth deposits, and increasing incentives by governments for renewable energy systems.
What are the major challenges in the rare earth metals leaching chemicals market?
The major challenging factor faced by the rare earth metals leaching chemicals market is safety of workers in rare earth elements mining.
What are the restraining factors in the rare earth metals leaching chemicals market?
The major restraining factor faced by the rare earth metals leaching chemicals market are environmental impacts of leaching chemicals for rare earth metals and government regulations on rare earth metals mining.
What is the key opportunity in the rare earth metals leaching chemicals market?
Green solvent usage in rare earth metal mining and rare earth metals recovery from secondary sources are the key opportunity in the rare earth metals leaching chemicals market.
What are the types of rare earth metals leaching chemicals?
Hydrochloric acid, sulfuric acid, nitric acid, ammonium sulphate, citric acid and others.
Which region holds the largest market of the rare earth metals leaching chemicals?
Asia Pacific region holds the largest market of the rare earth metals leaching chemicals. .
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This research study involves the use of extensive secondary sources, directories, and databases, such as Hoovers, ICIS articles, Factiva, and Bloomberg Businessweek, to identify and gather information for a technical, market-oriented, and commercial study of the rare earth metals leaching chemicals market. The primary sources include industry experts from core and related industries and preferred suppliers, regulatory bodies, and organizations related to all segments of the value chain of this industry. In-depth interviews have been conducted with different primary respondents, such as key industry participants, subject matter experts (SMEs), C-Level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information, as well as to assess growth prospects.
Secondary Research
In the secondary research process, sources such as annual reports, press releases, investor presentations of companies; white papers; publications from recognized websites; and databases have been referred to for identifying and collecting information. Secondary research has been used to obtain key information about the supply chain of the industry, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both the market- and technology-oriented perspectives.
Primary Research
After the complete market estimation process (which includes calculations for market statistics, market breakdown, market size estimations, market forecast, and data triangulation), extensive primary research has been conducted to gather information and to verify and validate the critical numbers arrived at. Primary research has also been conducted to identify the segmentation, industry trends, key players, competitive landscape, industry trends, strategies of key players, and key market dynamics such as drivers, restraints, opportunities, and challenges.
In the primary research process, different primary sources from the supply and demand sides have been interviewed to obtain qualitative and quantitative information. The primary sources include industry experts such as CEOs, vice presidents, marketing directors, technology & innovation directors, and related key executives from various companies and organizations operating in the rare earth metals leaching chemicals market.
Following is the breakdown of primary respondents—
Notes: Others include sales, marketing, and product managers.
Tier 1: >USD 1 billion; Tier 2: USD 500 million–1 billion; and Tier 3: <USD 500 million.
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Market Size Estimation
In the market size estimation process, both the top-down and bottom-up approaches have been used, along with several data triangulation methods to carry out estimations and projections for the overall market and its sub-segments listed in this report. Extensive qualitative and quantitative analyses have been carried out on the complete process to list key information/insights throughout the report. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage shares split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players along with extensive interviews with key officials, such as directors and marketing executives.
The overall market size has been used in the top-down approach to estimate the sizes of other individual markets mentioned in the segmentation through percentage splits derived using secondary and primary sources.
For calculating each type of specific market segment, the size of the most appropriate immediate parent market has been considered for implementing the top-down approach. The bottom-up approach has also been implemented for data extracted from secondary research to validate the market sizes, in terms of value and volume, obtained for each segment.
The exact values of the overall parent and individual markets have been determined and confirmed through the data triangulation procedure and validation of data through primary interviews. The data triangulation procedure implemented for this study is explained in the next section.
Data Triangulation
Following the estimating process described above to determine the total market size, the market was divided into a number of segments and sub-segments. In order to complete the process of estimating the overall market size and determine the precise statistics for all segments and sub-segments, the data triangulation and market breakdown processes were used, where applicable. By examining multiple factors and trends from both the supply and demand sides, the data was triangulated. In addition, both top-down and bottom-up methods were used to validate the market size. After that, it was verified through primary interviews. As a result, there are three sources for each data segment: a top-down approach, a bottom-up approach, and expert interviews. The data was assumed to be correct when the values arrived at from the three sources matched.
Market Definition
Rare earth elements are a group of 17 chemical elements that occur together. The group comprises yttrium and 15 lanthanide elements (lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium). These rare earth elements are present in small concentrations in mineral deposits (basanite and monazite) and ion clay. Therefore, the leaching process is employed to recover rare earth metals from sources. In the process of leaching, strong leaching agents that are required to separate and recover rare earth metals from their sources are known as rare earth metals leaching chemicals. These leaching chemicals are classified as hydrochloric acid, sulfuric acid, nitric acid, ammonium sulfate, citric acid, and others. The increasing demand for rare earth metals in end-use industries such as automotive and clean energy, and the increasing chemical market in Asia Pacific will lead to the growth of rare earth metals leaching chemicals in the forecast period.
Key Stakeholders
- Manufacturers of rare earth metals leaching chemicals
- Industry associations
- Rare earth metals leaching chemicals traders, suppliers, and distributors
- Regional manufacturers’ associations
- Government and regional agencies and research organizations
Report Objectives
- To define, describe, and forecast the rare earth metals leaching chemicals market in terms of value and volume.
- To provide detailed information regarding the key factors influencing the growth of the market, such as drivers, restraints, opportunities, and challenges.
- To analyze and forecast the market size in terms of value and volume, with respect to four main regions: North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
- To strategically analyze the micro markets with respect to individual growth trends, future prospects, and contribution to the total market
- To analyze the opportunities in the market for stakeholders and draw a competitive landscape for market leaders
- To analyze competitive developments, such as products & services offered, and expansion, in the market
- To strategically profile key players and comprehensively analyze their core competencies
Available Customizations:
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of APAC Rare earth metals leaching chemicals market
- Further breakdown of Rest of Europe Rare earth metals leaching chemicals market
- Further breakdown of the Rest of Middle East & Africa Rare earth metals leaching chemicals market
- Further breakdown of Rest of South America Rare earth metals leaching chemicals market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Rare Earth Metals Leaching Chemicals Market