Global Rare Earth Elements Market Overview
The Rare Earth Elements Market size was valued at USD 9,140.6 Million in 2024. The Rare Earth Elements Market industry is projected to grow from USD 10,417.5 Million in 2025 to USD 33,898.0 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 12.1% during the forecast period (2025-2035).
The growing demand in electronics and renewable energy industries and government policies and incentives and increasing usage in aerospace & defense are driving the growth of the Rare Earth Elements Market.
As per the Analyst at MRFR, the demand for rare earth elements has been accelerating over the past few years, primarily driven by the rising advancements in the electronics and renewable energy sectors. Rare earth elements play a vital role in the manufacturing of various electronic devices, such as smartphones, laptops, and televisions, which require materials that can sustain high frequencies and temperatures. Various electronics rely on miniaturized components to obtain compact and lightweight designs.
Rare earth elements such as neodymium, dysprosium and praseodymium find significant applications in the production of permanent magnets, especially neodymium-iron-boron magnets, which are one of the strongest magnets, allowing for powerful magnetic fields in small sizes. These magnets are used in a wide range of electronic components including smartphone speakers, microphones and laptop cooling fans, where their compact size and efficiency plays a vital role in obtaining the desired performance.
As demand for smaller and more efficient electronics rises, the demand for rare earth elements that enable such miniaturization will also increase substantially. Further, rare earth elements such as europium, terbium and yttrium are used in phosphors that create a wide array of colors in screens and displays. For instance, europium is used in red phosphors for LED displays and terbium produces green phosphors.
FIGURE 1: RARE EARTH ELEMENTS MARKET VALUE (2019-2035) USD MILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Rare Earth Elements Market Opportunity
ENHANCED PROCESSING TECHNOLOGIES
Enhanced processing technologies are creating substantial growth opportunities for the rare earth elements market by enabling more efficient, cost-effective and environmentally friendly ways of extracting and refining these critical resources. These advancements are helping in addressing the technical challenges associated with rare earth mining along with contributing to increased supply security, lower production costs and reduced environmental impact.
Traditional extraction methods for rare earth elements require a large amount of chemicals, which makes its production costly along with creating several environmental issues. Advanced extraction techniques such as solvent extraction, ion-exchange resins and bioleaching are effective in optimizing the separation process, allowing companies to isolate rare earth elements with higher purity and yield. Enhanced processing technologies are also minimizing the environmental footprint of rare earth element mining and refining. Traditional methods rely significantly on acids, solvents, and other chemicals that can lead to hazardous waste and environmental damage if not managed properly. Techniques such as solid-phase extraction and supercritical COâ‚‚-based extraction can efficiently isolate rare earth elements without producing large volumes of wastewater and toxic by-products.
Furthermore, nanoparticles and nanostructured materials are being developed for separating rare earth elements from complex mixtures. Also, plasma technology, which involves the use of extremely high temperatures to vaporize metals, is effective in separating rare earth elements from low-concentration ores. Enhanced recycling technologies are also playing a crucial role in reducing the environmental impacts in rare earth elements market. The advancements in recycling technology are enabling the recovery of rare earth elements more efficiently and at a lower cost.
For instance, in hydrometallurgical recycling, usage of advanced solvents and reagents enables selective extraction of rare earth elements from complex waste materials, allowing for high purity recovery. Thus, enhanced processing technologies are transforming the rare earth elements market significantly by improving extraction efficiency, reducing environmental impact, expanding access to previously unreachable deposits, reducing costs and enabling recycling. By making rare earth element production more sustainable and cost-effective, these technologies are contributing substantially to the growth of the rare earth elements market.
Rare Earth Elements Market Segment Insights
Rare Earth Elements System by Product Insights
Based on Product, this segment includes Cerium, Dysprosium, Erbium, Europium, Gadolinium, Lanthanum, Neodymium, Praseodymium, Samarium, Scandium, Terbium, Ytterbium, Yttrium, Others (Holmium, Lutetium, Promethium, Thulium). The Neodymium segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Neodymium is one of the more reactive lanthanides—a group of similar metallic elements numbered 57-71 on the periodic table. Neodymium is primarily mined as part of a conglomerate with other rare earth elements in the monazite and bastnaesite mineral deposits.
Historically, a single mine in California produced most of the world’s rare earth minerals, but since the early 90s, China has become the world’s primary source. Today the largest demand for high-performance neodymium-iron-boron magnets is in the motors of electric and hybrid vehicles. For example, each Toyota Prius is reported to contain as much as 1 kg of neodymium in its motor. Neodymium magnets are also used in wind turbines, aeronautics and space. Other uses of neodymium include making specialized glass used in protective goggles for welding and glass blowing, and in applications such as surgical lasers and laser pointers. Finally, it is used as a catalyst in polymerization reactions.
Rare Earth Elements System by Application Insights
Based on Application, this segment includes Magnets, Catalysts, Metallurgy, Polishing, Glass, Phosphors, Ceramics, Others. The Magnets segment dominated the global market in 2024, while the Phosphors segment is projected to be the fastest–growing segment during the forecast period. One of the primary applications of rare earth elements is in magnets, particularly high-performance permanent magnets.
These magnets, which are made using rare earth elements such as neodymium, dysprosium, and praseodymium, are crucial for technologies like electric motors, wind turbines, magnetic resonance imaging (MRI) machines, and hard drives. The demand for rare earth magnets is expected to surge with the rise of renewable energy systems (such as wind power) and the electrification of transportation, especially electric vehicles (EVs), as these magnets are used in their motors and battery systems. As industries push for greater efficiency, miniaturization, and performance in electronics and green technologies, the role of rare earth magnets will only grow.
FIGURE 2: RARE EARTH ELEMENTS MARKET SHARE BY APPLICATION 2024 AND 2035 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Rare Earth Elements System by End-Use Insights
Based on End-Use, this segment includes Automotive, Oil & Gas, Electronics, Renewable Energy, Aerospace & Defense, Others. The Automotive segment dominated the global market in 2024, while the Renewable Energy is projected to be the fastest–growing segment during the forecast period.
In the automotive industry, rare earth elements are crucial to producing high-performance electric vehicles (EVs) and hybrid vehicles. rare earth elements such as neodymium and dysprosium are key components in the production of powerful permanent magnets used in electric motors, which are essential for the operation of EVs. Additionally, rare earths are used in catalytic converters to reduce harmful emissions from internal combustion engines. As the automotive sector shifts toward greener and more sustainable technologies, the demand for rare earth elements, particularly in EV production, is expected to rise sharply. rare earth elements are also used in advanced driver-assistance systems (ADAS), sensors, and battery technologies, making them indispensable for the future of the automotive industry.
Rare Earth Elements System Regional Insights
Based on the Region, the global Rare Earth Elements is segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa. Major demand factors driving the Asia-Pacific market are the growing demand in electronics and renewable energy industries and government policies and incentives and increasing usage in aerospace & defense. The Asia Pacific (APAC) region dominates the global rare earth element market, both in terms of supply and consumption. China is the world’s largest producer and consumer of rare earth elements, accounting for over 60% of global production.
As such, China is a key player in shaping the market dynamics, both as the primary exporter of rare earth elements and as the main supplier of refined rare earth products. Chinese companies control a significant portion of the global supply chain, from extraction to processing and manufacturing of rare earth-based products. In addition to China, countries like Japan and South Korea are major consumers of rare earths due to their advanced electronics, automotive, and industrial manufacturing sectors. Japan has been working on securing alternative sources of rare earths outside of China, particularly after supply disruptions in recent years, and has invested in recycling technologies and rare earth extraction from mining waste to diversify its supply chain. India is also becoming an increasingly important player in the APAC region, with growing demand for rare earth elements in sectors like electronics, defense, and automotive.
FIGURE 3: RARE EARTH ELEMENTS MARKET VALUE BY REGION 2024 AND 2035 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, the UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Australia, GCC Countries, South Africa and others.
Global Rare Earth Elements Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Rare Earth Elements Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major players in the market are Lynas Rare Earths Limited, Iluka Resources Ltd, Arafura Rare Earths Ltd, Shenghe Resources Holding Co., Ltd, Texas Mineral Resources Corp, IREL (India) Limited, Canada Rare Earth Corp., MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Materials are among others. The Rare Earth Elements Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Rare Earth Elements Market include
- Lynas Rare Earths Ltd
- Iluka Resources Ltd
- Arafura Rare Earths Ltd
- Shenghe Resources Holding Co., Ltd
- Texas Mineral Resources Corp
- IREL (India) Limited
- Canada Rare Earth Corp.
- MP Materials
- Rare Element Resources Ltd.
- Avalon Advanced Materials Inc.
- ACS Materials
Rare Earth Elements Market Industry Developments
24-July-2024: Peak Rare Earths has signed a non-binding term sheet with Chinese miner Shenghe Resources, which will see the latter invest in Peak’s Ngualla rare earth element (REE) project in Tanzania. Shenghe will acquire a 50% interest in Ngualla Group UK, which owns 84% of the Ngualla Project. Shenghe Resources, through its subsidiary Shenghe Resources (Singapore), already holds a 19.9% stake in Peak and has been involved in the company’s governance since December 2022.
30-May-2024: Texas Mineral Resources Significantly Expands Project Exploration Area of 2021 Mineral Exploration and Option Agreement With Santa Fe Gold in the New Mexico Black Hawk Mining District.
01-November-2023: IREL (India) Limited entered MoU with Tamil Nadu Minerals Limited (TAMIN) to harness the mineral sands deposit in Tamil Nadu. The MoU is to undertake Mining of mineral sands (BSM) Mineral processing and value addition in the State of Tamil Nadu. This would be instrumental for obtaining Strategic mineral for the Department of Atomic Energy besides ensuring availability of other minerals for the industry.
10-June-2024: Canada Rare Earth Corp. has signed a supply agreement between Simba Essential Minerals, which will be a wholly owned subsidiary of Canada Rare Earth and SAKIMA SA, a Congolese state-owned mining company. This agreement will enhance Canada Rare Earth’s supply chain of rare earths and other essential minerals sourced in the DRC and will go a long way towards enabling the company to increase its supply volumes.
Rare Earth Elements Market Segmentation
Rare Earth Elements by Product Outlook
- Cerium
- Dysprosium
- Erbium
- Europium
- Gadolinium
- Lanthanum
- Neodymium
- Praseodymium
- Samarium
- Scandium
- Terbium
- Ytterbium
- Yttrium
- Others
- Holmium
- Lutetium
- Promethium
- Thulium
Rare Earth Elements by Application Outlook
- Magnets
- Catalysts
- Metallurgy
- Polishing
- Glass
- Phosphors
- Ceramics
- Others
Rare Earth Elements by End-Use Outlook
- Automotive
- Oil & Gas
- Electronics
- Renewable Energy
- Aerospace & Defense
- Others
Rare Earth Elements Regional Outlook
- North America
- Europe
- Germany
- UK
- France
- Russia
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Thailand
- Indonesia
- Australia
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
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Report Attribute/Metric
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Details
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Market Size 2024
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USD 9,140.6 Million
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Market Size 2025
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USD 10,417.5 Million
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Market Size 2035
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USD 33,898.0 Million
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Compound Annual Growth Rate (CAGR)
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12.1% (2025-2035)
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Base Year
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2024
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Forecast Period
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2025-2035
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Historical Data
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2019-2023
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Forecast Units
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Value (USD Million)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Product, By Application, By End-Use
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Geographies Covered
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North America, Europe, Asia Pacific, South America, Middle East & Africa
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Countries Covered
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The US, Canada, Mexico, Germany, the UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Australia, GCC Countries, South Africa.
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Key Companies Profiled
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Lynas Rare Earths Limited, Iluka Resources Ltd, Arafura Rare Earths Ltd, Shenghe Resources Holding Co., Ltd, Texas Mineral Resources Corp, IREL (India) Limited, Canada Rare Earth Corp., MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Materials
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Key Market Opportunities
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·        Enhanced processing technologies
·        Rapidly expanding automotive sector
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Key Market Dynamics
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·        Growing demand in electronics and renewable energy industries
·        Government policies and incentives
·        The increasing usage in aerospace & defense
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Frequently Asked Questions (FAQ) :
USD 9,140.6 Million is the Rare Earth Elements Market in 2024
The Magnets segment by Application holds the largest market share and grows at a CAGR of 13.0% during the forecast period.
Asia-Pacific holds the largest market share in the Global Rare Earth Elements Market.
Lynas Rare Earths Limited, Iluka Resources Ltd, Arafura Rare Earths Ltd, Shenghe Resources Holding Co., Ltd, Texas Mineral Resources Corp, IREL (India) Limited, Canada Rare Earth Corp., MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Materials are the prominent players in the Global Rare Earth Elements Market.
The Neodymium segment dominated the market in 2024.
