Rare-earth elements market: A historical and financial perspective

Rare earth elements (REEs), which include the lanthanides, yttrium, and scandium, have been the focus of several studies in recent years due to their contribution to modern technology (e.g. screens of smart phones, computers, and flat panel televisions; batteries of hybrid and electric cars), China's dominance in production and consumption, and to the international dependence on China for most of the world's REE supply. The aim of this study is two-fold. First, to offer a historical perspective of the REE market by constructing and analyzing time series of consumption, production, and oxide/metal prices. Such series are mostly non-existent (e.g., consumption) or scattered across different sources (e.g., prices). Second, to provide a financial perspective of the REE market by gauging the market capitalization and systematic risk of leading companies involved in exploration, production and processing of REEs worldwide; and, by measuring co-movement of REE prices and commodity indices. We contribute to the existing literature by providing a thorough overview of the REE market.