Interplays In The Rare Earth Element Value Chain

Abstract

An imbalance problem exists in the rare earth element (REE) market with cerium and lanthanum being more abundant and less valuable than REEs used in permanent magnets such as neodymium, praseodymium, and dysprosium. Research has been conducted on new applications for abundant REEs to improve mining economics. However, potential market impacts of these applications on individual REE commodities are unknown. A system dynamics model was built to investigate the impacts of a new aluminum-cerium (Al-Ce) alloy that can theoretically utilize three separate cerium forms: cerium carbonate, cerium oxide, or cerium metal. Cerium carbonate currently possesses the lowest price of the three available forms making it initially the most favorable choice. However, model results showed that cerium oxide could provide the best economics for future Al-Ce alloy deployment because its larger market size buffers major shocks to price.