Seriously, we all know that automakers which produce electric cars with longer range between recharging will capture the market share in a big way. Rare earth that are used in permanent magnets are known to be the most powerful and efficient way to power electric vehicles , this fact has been confirmed by Tesla and that is one of the reasons why Tesla produces two types of cars one with magnet motor and one without it.
Yes, automakers have been trying hard to decrease reliance on Chinese rare earth through investing in recycling rare earth from used cars or use less or rare earth free motors but they compromise on power and efficiency. This will not only deter customers who are looking for power and efficiency but adding to costs of developing new technology
In 2019, Tesla said that a rare earth based motors increase the range by 10 percent Volkswagen uses both types of motors ( with and without rare earth in its new ID.4 crossover SUV
Ryan Castilloux at Canada- based consultancy Adams intelligence expects increase the sales of rare earth magnets by four times this year’s value and reach $15.7 billion by 2030. We are only talking about electric vehicles, we haven’t even mentioned other applications of rare earth in wind turbine, etc
Claudio Vitoria a senior analyst of e- mobility at data analytics company IHS Markit acknowledged that while rare earth free electric motor will rise nearly eightfold, yet permanent magnet motors that uses rare earth will still dominate , mainly because of their power and efficiency
it is all about diversity, producing what the customers are after to give ICE cars for electric cars and that is simply more efficient and powerful cars . That is only found in rare earth magnet motors. That is why automakers around the world are going directly to the miners like Arafura and the likes
Finally, people like you who intentionally talk down rare earth importance in electric cars manufacturing are , missing out on young green promising company and as I said time will expose you and let the share price do the talking
My thoughts only, not a financial advice
ARU Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
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