Japanese rare earth market will double by 2015 from 2008 level due to higher demand for magnetic materials and battery under higher production for hybrid car. Rare metal trading firm, Advanced Material Japan expects the market could grow at averaged 10% per year to 66,800 tonnes in 2015 from 34,330 tonnes in 2008. The value would increase to 113 billion yen from 58 billion yen.

 

The firm expects neodymium-iron-boron magnet market will increase by 57% to 17,000 tonnes in 2010 from 2008. The neodymium demand will increase by 56% to 8,400 tonnes during the period. Demand for dysprosium, which is added to the magnet, will increase by 60% to 800 tonnes. Higher production of hybrid motor will consume higher volume of magnet.

 

The higher nickel hydride battery demand supports rare earth demand. The firm expects hydrogen storing alloy demand will increase by 52% to 10,000 tonnes in 2010 from 2008 level. With the higher demand, mischmetal demand will increase by 51% to 4,000 tonnes.

 

Higher demand for luminescent materials also expands rare earth consumption. The world demand for luminescent materials with rare earth increases to more than 10,000 tonnes in 2011 from 2008 level, according to the firm. –Japan Metal Bulletin