China Securities Co., Ltd.: China has a competitive advantage in the rare earth industry chain. In the future, attention will be paid to the demand for neodymium iron boron materials driving the industry.

China Securities Co., Ltd. released a research report stating that China is the world's largest rare earth resource, mineral/metallurgical production, and consumption country, with advantages in the rare earth industry chain. According to USGS data, China Rare Earth Resources And Technology accounts for approximately 40% of the global rare earth reserves, with a higher proportion of medium to heavy rare earths, which are more abundant and strategically valuable. Rare earth permanent magnets are the largest consuming area of rare earths and are maintaining rapid growth. The demand for high-performance neodymium-iron-boron materials in new energy vehicles is the most significant area driving demand, accounting for approximately 50% of future demand. Due to the rapid growth in areas such as new energy vehicles, energy-efficient motors, and wind power generation, it is estimated that by 2027, the demand for high-performance neodymium-iron-boron magnetic materials will reach 212,000 tons, with a compound annual growth rate of 13%. China Securities Co., Ltd.'s main points are as follows: Reassessment of the strategic value of resources, emerging industries, and national defense technology as essential "vitamins" China is the only country in the world with a complete rare earth industry chain, and the four scarcities lay the foundation for its strategic position. Although rare earth elements are not scarce in the earth's crust, some elements are even more abundant than tungsten, tin, molybdenum, cobalt, and other metals, such as cerium, which ranks 25th and is close to copper. However, the four scarcities of rare earths highlight their strategic importance. There are few mineral deposits with industrial value. Rare earth elements often occur together with other elements, making it difficult to form deposits independently, so mineral deposits with industrial value of rare earths are relatively rare. There are over 250 rare earth minerals found in nature, but only a few contain high amounts of rare earth elements that have practical industrial value. Uneven distribution, large differences in distribution of types, and medium to heavy rare earth distribution is even more uneven. Globally, light rare earths have a large reserve and are relatively widely distributed; however, ion-type rare earth ores with high content of medium to heavy rare earths are more concentrated, with only a few countries such as China and Southeast Asia being relatively abundant. Industrial chain tapping industry chain cluster scarcity. China has the most complete rare earth industry chain in the world, including rare earth ore mining-selection, smelting-separation, rare earth oxide production, rare earth metal production, magnetic material processing, and recycling. Besides China, no other country has a complete industrial chain layout, especially in the rare earth smelting and separation links, which are scarce overseas. Prominent physical and chemical characteristics, known as the "mother of new materials," are indispensable in some key areas. Rare earths have excellent physical and chemical properties such as light, electricity, and magnetism, allowing them to form various types of new materials with different properties when combined with other materials. This significantly improves the quality and performance of other products, making rare earths an essential key raw material to support the development of high technology, known as the "mother of new materials." Although the amount of rare earths used is small, they are indispensable and difficult to replace. The advantage lies in us, possessing the comprehensive advantage of the rare earth industry chain. China is the world's largest rare earth resource, mineral/metallurgical production, and consumption country, possessing a comprehensive advantage in the rare earth industry chain. According to USGS data, China Rare Earth Resources And Technology accounts for approximately 40% of the global rare earth reserves and has a higher proportion of medium to heavy rare earths, with resources that are more abundant and strategically valuable; China Rare Earth Resources And Technology's mineral production accounts for approximately 70% of the global total. In addition, China Rare Earth Resources And Technology's smelting-separation and magnetic material processing capacity advantages are even more prominent, making it the only country in [...]