Ann: Shenghe Investment and Funding Term Sheet, page-42

What you need to understand is that the value of rare earth magnets is in their high strength, in a very small size. For something like a lift, that’s not a big deal - there’s room to put in a physically larger magnet if that’s cheaper but still achieves the desired goal.

It’s for applications like cars, where weight and space is at a premium, where rare earth magnets really have high value. Even there, there are alternatives (eg, reluctance motors), with certain drawbacks.

Don’t get me wrong; rare earth materials are of high importance, and I don’t see supply meeting demand in the near future. I just don’t want people overstating the case for investing in a rare earth mining project.