Recent dips in the prices of rare earth metals provide opportunities and risks for investors according to Baker Steel Resources Trust.
Supply chains in particular are under strain, says the investment company.
“Demand for magnet rare earth is forecast to more than double by 2030, driven by the green revolution. Outside of China there is already a real issue in securing enough material and processing to the magnet stage," it noted in a statement.
Rising geopolitical tension, particularly between the US and China, will likely place a further strain on supply chains for rare earths.
Securing the supply of critical materials, while protecting sensitive technologies, is increasingly difficult for governments and holds significant implications for natural resources investors, the resources trust added. (read more).