Market Overview
The global rare earth elements market size was valued at USD 12.44 Billion in 2024 and is anticipated to reach USD 37.06 Billion by 2033, growing at a CAGR of 12.83% during the forecast period from 2025 to 2033. China dominates the market with over 58.3% share in 2024. Growth is driven by demand in clean energy technologies, automotive catalysts, and consumer electronics sectors. The 2022 price surge due to geopolitical tensions further bolstered revenues.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Rare Earth Elements Market Key Takeaways
- Current Market Size: USD 12.44 Billion (2024)
- CAGR: 12.83% (2025-2033)
- Forecast Period: 2025-2033
- China holds a dominant revenue share of 58.3% in 2024.
- Magnets accounted for the highest revenue share at 31.2%, essential for electric vehicles, wind turbines, and electronics.
- Dysprosium demand is projected to increase by 2,600% and neodymium by 700% over the next 25 years.
- The U.S. is strengthening domestic REE capabilities through government investments and strategic partnerships.
- Growing use in automotive, renewable energy, and electronics is expanding market demand globally.
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Market Growth Factors
The market growth is primarily driven by the increasing demand for clean energy technologies. Rare earth elements are critical in manufacturing permanent magnets used in wind turbines and electric vehicle (EV) motors, both rapidly expanding due to global sustainability targets. Governments actively promote renewable energy adoption, boosting the need for materials like neodymium and dysprosium. Research indicates a surge in dysprosium demand by 2,600% and neodymium by 700% over 25 years. Advances in battery and energy storage technologies further enhance REE usage, improving efficiency and lifespan of power systems.
Rare earth elements see widespread adoption in various industries, notably automotive, where they are integrated into magnets and catalysts. The global stock of electric cars increased by over 63% from 2017 to 2018, driving permanent magnet use in batteries. Increased nuclear reactor production is raising gadolinium demand, while praseodymium gains popularity as an alloy with magnesium for aircraft engine metals. Consumer electronics, especially in Asia-Pacific, are also expanding REE demand, evident from India’s increase in LED and LCD TV production, which reached 16 million units in 2018.
Technological advancements and strategic partnerships significantly contribute to market expansion. Key players collaborate with mining, chemical firms and end-users like defense contractors and renewable energy providers. For example, Lynas Rare Earths Ltd planned to expand its Mt Weld mine with full operations expected in 2024. Iluka Resources Ltd invested USD 1.2 Billion in Western Australia for rare earth oxide production. Arafura Resources Ltd is developing separation plant capabilities for its Nolans NdPr Project. These developments reinforce supply chain stability amid geopolitical sensitivities.
Market Segmentation
Analysis by Application:
- Magnets: Critical for electric vehicles, wind turbines, and consumer electronics, magnets hold the largest market share (31.2%). Permanent magnets composed of neodymium, praseodymium, and dysprosium enhance efficiency, durability, and are essential for automation and robotics.
- NiMH Batteries
- Auto Catalysts
- Diesel Engines
- Fluid Cracking Catalyst
- Phosphers
- Glass
- Polishing Powders
- Others
Regional Insights
China dominates the rare earth elements market with a 58.3% share in 2024 due to its vast reserves, advanced mining infrastructure, integrated supply chain, and government policies like export controls and production quotas. Investments in R&D enhance extraction efficiency and sustainability. China's strong domestic demand from electronics, EVs, and renewable energy industries further solidifies its market leadership.
Recent Developments & News
- May 2025: The U.S. allocated over USD 439 Million via the Defense Production Act to build a complete domestic rare earth supply chain, reducing import dependence.
- April 2025: Canada's Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Mesa, Arizona, to recycle scrap from EV motors and hard drives.
- December 2024: Defense Metals released its Wicheeda Rare Earth Element Project Pre-feasibility Study, supported by Hatch Ltd. and SRK Consulting; pricing projections provided by Argus Media.
- August 2024: University of Wyoming’s Blockchain Center partnered with ClimateChain on Project NorthStar to track rare earth elements using blockchain technology for supply chain traceability and emission reduction.
- April 2024: Saskatchewan Research Council signed a five-year deal with Hung Thinh Group (Vietnam) to supply 3,000 tons annually of rare earth carbonate.
- April 2024: MP Materials secured USD 58.5 Million to build the first integrated rare earth magnet manufacturing facility in Fort Worth, Texas, targeting production in late 2025.
- March 2024: Australian Strategic Materials partnered with Bechtel for FEED services on the Dubbo Project; ASM also signed a supply agreement with USA Rare Earth in August 2023.
- January 2024: Kazakhstan announced plans to develop its 15 rare earth deposits with international partners, aiming to boost electronics and clean energy applications.
Key Players
- Arafura Rare Earths Limited
- Avalon Advanced Materials Inc.
- Baotou Jinmenghui Magnetic Materials Co., Ltd
- Canada Rare Earth Corporation
- Iluka Resources Limited
- IREL (India) Limited
- Lynas Rare Earths Ltd
- Neo Performance Materials Inc
- Northern Minerals
- Shin-Etsu Chemical Co., Ltd.
- Ucore Rare Metals Inc.
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