The development of the market for rare earth elements: insights from economic theory
The development of the market for rare earth elements: insights from economic theory
Schlinkert, D.; van den Boogaart, K. G.
Abstract
In this paper, a clear and structured economic model is introduced to illustrate complex past and future developments of the market for rare earth elements (REE). The model consists of a sequence of four supply and demand models that give explanations how the mining and separation step of the REE value chain could concentrate in China. Furthermore, the sequence allows giving a coherent scenario for the future developments of the REE market. According to this scenario, the market could transform into an at least oligopoly due to a growing market demand. The validity of this scenario is discussed and evaluated from the perspective of western countries, investors and China. Additionally, a scenario, based on the models, of a propagating monopoly along the value chain will be discussed. Finally, suggestions are made for western governments to promote the transformation and lead it to a positive outcome.
Keywords: rare earth elements; economic model; monopoly; value chain
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Resources Policy 46, Part 2(2015), 273-280
DOI: 10.1016/j.resourpol.2015.10.010
ISSN: 0301-4207
Cited 39 times in Scopus
Permalink: https://www.hzdr.de/publications/Publ-21731