Mining Weekly: Rising Prices Signal End of ‘Hand-to-Mouth’ REE Market
Automotive industry actively pursuing long-term supply agreements
In August 2017 Adamas Intelligence spoke with Mining Weekly regarding the latest developments in China’s rare earth industry that have sent prices soaring in recent months.
Some key points emphasized during the discussion were:
- The ongoing inspections follow the recent consolidation of China’s rare earth enterprises into six large groups – a move that has done little to reduce the number of rare earth businesses operating in China – but has been effective in centralising industry control, increasing government oversight, and strengthening the pricing power of China’s major rare earth producers.
- With the outlook for EV demand continuing to surprise on the upside, and with increasingly aggressive targets being put forward by governments and automakers alike, we believe that Chinese and foreign automakers and OEMs are actively pursuing long-term binding supply agreements with China’s major rare earth and permanent magnet producers, reducing the amount of ‘unspoken for’ material available on the spot market and lending support for higher spot prices
Read more about what was discussed in this recent article from the Mining Weekly.Back to overview