The following content is excerpted from the prospectus of Neo Performance Materials Inc. dated October 17, 2017 filed on SEDAR.
Rare Earth Elements
Permanent Rare Earth Magnet Industry >>
Catalyst Industry >>
Rare Earth Separation and Processing Industry
REEs are comprised of specific chemical elements of the periodic table that share similar properties and are often
found together in the same geological deposits. These elements are seldom found in high grade, discrete ore bodies and
thus are often exploited as by-products of a mine. REE deposits are found in many parts of the world but are
predominantly located in China, which currently supplies approximately 87% of the global market according to
Roskill. Licensed separators are focused on separating specialty rare earth
materials, specifically engineered for use by manufacturers of end products including permanent magnets, catalysts,
ceramics, polishing, batteries, glass additives, metallurgy and phosphors, among others.
According to Roskill, global demand for REOs was estimated to have been 123,200 tonnes in 2016 with China
accounting for 85,100 tonnes or 69%. Global demand for REOs is forecast to grow at a 5.7% CAGR from 123,200 tonnes
in 2016 to 162,600 tonnes in 2021. The two main reasons cited for this high market growth rate include increased demand
for NdFeB permanent magnets and continued growth in the catalysts sector.
Roskill forecasts rare earths used in permanent magnets to be the highest growth application for REOs, with a
forecasted CAGR of 10.1%, increasing from an estimated 28,400 tonnes in 2016 to 46,000 tonnes in 2021. This growth
will be driven by increased demand for small size NdFeB magnets used in consumer electronics, home appliances and
automotive applications. Rare earths used in catalyst applications are forecast to grow at a 5.1% CAGR, increasing
from an estimated 29,000 tonnes in 2016 to 37,200 tonnes in 2021. Demand for catalysts will be driven primarily by
the automotive sector, with the introduction of stricter global controls on vehicle emissions as governments attempt to
reduce greenhouse gases.
Source: Neo Performance Materials Inc. Prospectus filed on SEDAR dated October 17, 2017
