Other Metals/Minerals

The "Other Metals/Minerals" industry encompasses geological materials beyond base and precious metals, including industrial minerals and specialty metals/rare earth elements (REEs). Industrial minerals like limestone and silica are used in construction and agriculture, while specialty metals such as lithium and cobalt are vital for advanced technologies.

The industry's performance is driven by increasing global demand from sectors like construction, electronics, and aerospace. The shift towards clean energy and EVs is a major catalyst, requiring specialty metals for batteries and wind turbines. Government initiatives and technological advancements in extraction and material science also contribute to growth, with a trend towards sustainable operations and green technologies.

The industry includes diversified corporations and specialized companies. China dominates the REE market, with key players like Lynas Rare Earths and MP Materials. Industrial minerals involve companies like Gentor Resources Inc. and major mining companies such as BHP Group. Competition occurs on price, innovation, scale, and niche market service.

The industry has shown mixed performance recently. Industrial and precious metals have generally outperformed the S&P 500, but specialty metals demand has moderated. Rare earth element prices saw some recovery in May 2024, but overall prices have been falling again after a period of decline in 2023. The outlook is positive, with the global specialty metals and minerals market projected to grow significantly. The rare earth elements market is expected to exhibit a robust CAGR, driven by the EV sector and clean energy transition. The industrial minerals market is also projected for steady growth, driven by continued urbanization and infrastructure development.

The industry faces risks from economic cycles and commodity price volatility. Regulatory and geopolitical factors, including China's control over REEs, pose risks. Supply chain vulnerabilities, ESG concerns (environmental degradation and community relations), and operational challenges (land access, declining ore grades, labor shortages) are also significant. Emerging risks include cyber and IT security threats.