CIBC World Markets have released a complete sector overview of the rare earths space, noting what elements will perform, and what companies are position to take advantage of it.The crux of the report is that demand for the products that utilize rare earths is increasing. The supply of those elements is now being pinched, by a China willing to export less. Companies are stepping in to provide supply to the market, notably Avalon Rare Metals, Frontier Rare Earths, and Molycorp.
What's important when investing in the space is not just that the company focuses on rare earths, but that it focuses on key, high demand elements. Those elements include neodymium, praseodymium, yttirium, terbium, and dysprosium, according to CIBC, and the aforementioned companies are there to take advantage.
For a walk-through of where demand is, how supply is being pinched, and what companies you should be watching, take a look at these charts.
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