The wind turbine market remains a growth market today, but investors need to keep in mind that the first superconducting turbine has recently been tested (no PM) and that other lighter forms are being pursued.
These updated topologies will significantly reduce ROW REE demand from the wind sector.
We expect this decrease to occur in synchrony with increased PM use within the electrification of transportation and be overshadowed by it.
So, while the ROW NdFeB demand curve continues to lay down, it is still too much to handle and thus supply security is likely to remain the number one concern until new ROW operations come on line.
If ROW can't completely depend on REE supply, CEOs will stay away and research efforts to eliminate or reduce REE dependencies will continue finding readily-available funding from corporate and government sources. The only way to moderate these efforts, which represent a downside risk, is to increase ROW supply NOW.
Any action that secures a second source or supply of PMM would be welcomed by intelligent investors.
Quite clear no further investment in politically unstable Malaysia is warranted. Just clean it up and get the heck out. Already cost Lynas dearly. Last thing they needed. Bad press for ROW REEs. WOULD NOT have been the disaster it has become (another clarion call to fund research replacing REEs) if they had peers; as it is, the sordid story of Lynas in Malaysia has put the ROW supply at risk and the entire world on high alert because that's what sole source acquisition does.
Who needs peers? ROW.
LYC Price at posting:
$2.17 Sentiment: Hold Disclosure: Held
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