July 6 (Reuters) - Goldman Sachs on Thursday said the West may need more than $25 billion in investments to match China's supply of rare earths, as export curbs by Beijing on minor metals fuel fears that rare earths could be next.
Europe and the U.S. are scrambling to wean themselves off rare earths from China, which account for 90% of global refined output.
Concerns about supply were heightened this week by China's decision to impose export restrictions on two minor metals used in semiconductors and electric vehicles.
The market was pushed into a surplus after China hiked its production quota for the first half of 2023 by 20%, Goldman said, cutting price forecasts for NdPr.
Replicating China's 50,000 tons per annum output could cost the West anywhere between $15 billion and $30 billion, Goldman estimated.
Persons:
Goldman Sachs, Goldman, Conor Humphries
Organizations:
Thomson
Locations:
Beijing, Europe, U.S, China, Bengaluru