The average person may not know exactly what rare earth elements are, but likely use something that contains them every day. These rare earth elements consist of 17 total chemical elements and are often considered rare earth metals. All of these elements’ properties are similar, and they are often all discovered in geologic deposits. As an investor, it’s worth pursuing the investment opportunities presented by rare earth elements. They are used in many different applications today, and the demand is expected to continue rising. Here’s what you need to know about the importance of rare earth elements and the investment opportunities they offer.
What Are Rare Earth Elements Used For?
The use of rare earth elements has increased significantly over the past couple of decades. These elements are commonly found in everyday products and devices like rechargeable batteries, magnets, cell phones, DVDs, fluorescent lights, computer memory, and more. Cell phones have driven the demand for rare earth elements in recent years, along with rechargeable batteries that have a wide range of applications. Rare earth elements are also used for military applications, such as communication equipment, GPS, night-vision goggles, and more. The rare earth elements have proven to be stronger and more effective than alternatives, so they are suitable for critical defense.
Where Rare Earth Elements Come From
An investor needs to understand where rare earth elements are most abundant. China is easily the largest rare earth element producer, with the United States being a distant second. Countries like Australia, Russia, Vietnam, Brazil, and Malaysia have ramped up their production as well, but it’s clear that China is the dominating force in the industry. The problem with this is if China places heavy restrictions on exports, the rest of the world may struggle to continue keeping up with the demand on their own.
The Demand For Rare Earth Elements Should Continue Rising
The demand for rare earth elements isn’t expected to decrease any time soon. Cell phones will always be popular, and the electric vehicle industry is projected to peak soon. Environmental concerns also could drive up the demand as people transition from using fossil fuels to using electric products instead. As a result, automobiles, eco-friendly lighting, and other things will keep the demand steady. And it’s also important to factor in consumer electronics, catalysts, laser technology for medical purposes, and more. All of these products and devices are expected to increase in demand, which means a heavier reliance on rare earth elements.
At Stock Investing Info, we work with clients no matter what their present financial knowledge is. It’s important as an investor to pursue various options to determine what investments fall within your risk tolerance and help you achieve your overall financial goals. Investing in rare earth elements can be a valuable addition to your portfolio, but it’s not for everyone. Don’t hesitate to contact us if you’d like more information about them to help you make the right investment decisions for you.