Rare Earths: The Hidden Engine of Modern Robotics

It’s no secret that countries like the United States have been looking to decouple from China’s dominant position in the rare earth supply chain as of late. Part of this is due to the vast number of industrial applications that rare earths bring to the table. For instance, many rare earths are employed in the manufacturing of modern robotics.Key Takeaways: A recent infographic from the team at Sprott illustrated how rare earths play a crucial role in the modern robotics industry. The infographic explained how nine different rare earth elements are employed across modern robotics, including magnets, displays, and more. The Sprott Rare Earths Ex-China ETF allows one to gain access to companies within the rare earths industry that are domiciled outside of China. A recent infographic from the team at Sprott helped illustrate the role that rare earths play in the robotics industry. Sprott’s infographic explained that of the 17 rare earth elements, nine can play a role in manufacturing modern robotic systems.How Rare Earths Are Employed in RoboticsFor instance, neodymium and praseodymium are used for magnets within robotic motors and actuators. Dysprosium, terbium, and samarium are also used for magnets for modern robotics. Other rare earths play a critical role in the optics and sensors of robotics and different automation systems. Sprott’s infographic explained that erbium and ytterbium are used in the construction of LiDAR systems that robots use to navigate around. See More: The Case for Gold as an ‘All-Weather’ Investment Lastly, rare earths contribute to the construction of displays and control screens. As Sprott noted, europium, terbium, and yttrium are all utilized to produce light and color on control screens and displays. It’s worth noting that the modern robotics industry is not one that should see waning demand any time soon. Sprott’s infographic noted that robotics and automation currently increase efficiency in supply chains. As just one example, robots in warehouses help with locating, acquiring, and transporting products around the warehouse floor. See More: Is the Uranium Industry Ready for the Nuclear Energy Wave?REXC: Targeted Exposure to Ex-China Rare EarthsThe Sprott Rare Earths Ex-China ETF (REXC) could be a compelling portfolio addition for advisors and investors looking to take advantage of the robotics opportunity set. REXC invests in rare earths companies domiciled outside of China. An ex-China approach could be a significant tailwind for the fund and its investor base in the coming years. As countries around the world look to build up their own rare earth supply chains and rely less on China imports, ex-China rare earth companies are well-positioned to benefit. And given the wide variety of industrial applications that rare earths have in the robotics industry alone, these elements may continue to benefit from sustained demand across both the public and private sectors. For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.DisclosuresAn investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below. Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance. Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi. Exchange Traded Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL, and REXC Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP. Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.