An electric car needs up to 2 kg of rare earths for the motor alone. Wind turbines, smartphones, semiconductors, military technology and much more - literally nothing without these raw materials.
The problem for the West: at times, China controlled over 80% of global production. Export restrictions are not a worst-case scenario, they are already a reality. And Western supply chains therefore have demonstrable weak points.
This is precisely where it becomes interesting for investors: North America, Europe and Australia are building up their own capacities in a targeted manner. Subsidized, politically desired, structurally necessary. If production increases more slowly than technology-driven demand, prices can rise sharply.
The very new Solactive Rare Earths Top 15 Index tracks 15 companies along the entire value chain - from $LYSDY (+2,21%) (Australia) to $MP (-1,89%) (USA), exclusively from Western markets, rule-based selection with AI data analysis.
The current ideas magazine analyzes the topic in detail: Opportunities, risks, index methodology and specific investment opportunities.
This article is part of an advertising partnership with Société Générale
