Rare Earth Elements Market Size
| Study Period | 2019 - 2030 |
| Market Volume (2025) | 182.36 kilotons |
| Market Volume (2030) | 223.91 kilotons |
| CAGR | 4.19 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Rare Earth Elements Market Analysis
The Rare Earth Elements Market size is estimated at 182.36 kilotons in 2025, and is expected to reach 223.91 kilotons by 2030, at a CAGR of 4.19% during the forecast period (2025-2030).
The rare earth elements industry is experiencing significant transformation driven by evolving global supply chain dynamics and strategic initiatives to diversify production sources. Major mining companies are making substantial investments to establish new production facilities outside traditional mining regions, exemplified by Rio Tinto's USD 6 million investment in 2023 to develop environmentally friendly scandium production facilities in North America. This strategic shift reflects the industry's broader movement toward establishing more resilient and geographically diverse supply chains, with several countries implementing policies to reduce dependence on single-source suppliers.
The aerospace and defense sectors are emerging as crucial growth drivers for rare earth materials, particularly in advanced materials applications. According to Boeing's Commercial Outlook through 2040, the global aviation industry anticipates the delivery of 43,610 new airplanes, creating substantial demand for rare earth-based components and materials. The increasing integration of rare earth elements in aerospace applications, especially in aluminum-scandium alloys, is revolutionizing aircraft manufacturing by enabling weight reduction of 15-20% while improving structural integrity and performance characteristics.
The industry is witnessing rapid technological advancement in rare earth extraction and processing methodologies, with companies investing heavily in research and development to improve efficiency and reduce environmental impact. Mining operations are increasingly adopting sophisticated technologies for extraction and processing, with over 10,000 mines globally implementing advanced techniques to optimize production. These technological improvements are particularly focused on developing more sustainable extraction methods and reducing the environmental footprint of rare earth element production.
The market is characterized by increasing industry consolidation and strategic partnerships, as companies seek to strengthen their market position and secure supply chains. Major players are forming joint ventures and strategic alliances to combine expertise and resources, particularly in developing new production facilities and technologies. This trend is accompanied by significant investments in research and development, focusing on discovering new applications and improving existing processes, while governments worldwide are implementing policies to support domestic rare earth production and processing capabilities.
Rare Earth Elements Market Trends
HIGH DEMAND FROM EMERGING ECONOMIES
The rare earth elements market is experiencing substantial demand growth from emerging economies, driven by rapid industrialization and technological advancement across multiple sectors. In the mobile phone sector, emerging markets are showing remarkable growth potential—China's unique mobile subscribers are projected to reach 1.26 billion by 2025, while Indonesia's smartphone adoption is expected to reach 89% by 2025. This expanding consumer electronics base in emerging nations has created significant demand for rare earth elements used in circuits, sensors, speakers, and other components.
The automotive and renewable energy sectors in emerging economies are also driving demand for rare earth elements. According to industry estimates, the annual demand for rare earth metals has doubled to 125 kilotons in recent years and is projected to reach 315 kilotons by 2030, primarily driven by advancing electronics and electric vehicle production in emerging markets. Additionally, emerging economies like Brazil, India, Morocco, the Philippines, South Africa, Sri Lanka, Turkey, and Vietnam collectively possess about 3.1 terawatts of offshore wind potential, which exceeds their current installed power generation capacity and is approximately three times the installed electricity generation capacity of all 28 EU countries, indicating significant future demand for rare earth elements in wind turbine manufacturing.
DEPENDENCY OF 'GREEN TECHNOLOGY' ON RARE EARTH ELEMENTS
The transition to green technology has created unprecedented demand for rare earth elements, which are crucial components in various clean energy applications. In the wind energy sector, rare earth elements such as neodymium, praseodymium, and dysprosium are essential for manufacturing rare earth permanent magnets used in wind turbines, with a single 3 MW direct drive wind turbine consuming approximately 2 tons of rare earth permanent magnets. The automotive industry's shift toward electrification has further intensified this dependency, with approximately 85% of automakers using neodymium-incorporated permanent magnet motors in 2021, and automotive demand for rare earths projected to rise by 25% annually.
The expanding clean energy infrastructure continues to drive demand for rare earth elements across multiple applications. Electric vehicles typically require 1-2 kg of rare earth permanent magnets each, while hybrid electric vehicles utilize NiMH batteries that contain significant amounts of rare earths such as cerium, lanthanum, neodymium, and praseodymium, requiring as much as 10 to 15 kilograms per vehicle. The growing adoption of these technologies, coupled with global initiatives to reduce carbon emissions, has established rare earth elements as indispensable materials for achieving environmental sustainability goals. This dependency is further reinforced by the limited availability of viable substitutes, with only samarium and cobalt serving as potential alternatives for certain applications in EVs and wind turbines.
Segment Analysis: ELEMENT
Cerium Segment in Rare Earth Elements Market
The cerium segment dominates the global rare earth elements market, accounting for approximately 42% of the total market share in 2024. Cerium's widespread adoption can be attributed to its versatile applications across multiple industries. It serves as a crucial component in automotive catalytic converters, enabling them to operate at high temperatures and playing a vital role in converting harmful emissions. In the glass industry, cerium is extensively used for glass polishing and as an additive to protect products from radiation-induced browning. The element's pyrophoric properties make it valuable in metallurgical applications, particularly in lighter flints. Additionally, cerium compounds have gained significant traction in the optical sector for fine glass polishing, as decolorizers in glass manufacture, and as catalysts in petroleum cracking applications.
Neodymium Segment in Rare Earth Elements Market
The neodymium segment is projected to exhibit the strongest growth trajectory in the rare earth elements market from 2024 to 2029. This robust growth is primarily driven by the escalating demand for neodymium-iron-boron permanent magnets, which are essential components in electric vehicles, wind turbines, and various electronic devices. The increasing global shift toward renewable energy sources and electric mobility has created substantial demand for these high-strength permanent magnets. In the electronics sector, neodymium magnets enable the miniaturization of various devices, including mobile phones, microphones, and loudspeakers. The element's unique properties make it irreplaceable in manufacturing high-performance electric motors and generators, particularly in applications requiring strong magnetic fields in compact spaces.
Remaining Segments in Element Market
The other significant segments in the rare earth elements market include lanthanum, dysprosium, terbium, yttrium, and scandium, each serving distinct industrial applications. Lanthanum finds extensive use in hybrid vehicle batteries and specialized optical glasses. Dysprosium is crucial for enhancing the temperature resistance of permanent magnets. Terbium plays a vital role in phosphors and magnetic materials. Yttrium is essential in phosphors for LED displays and ceramics, while scandium is gaining prominence in aerospace applications through aluminum alloys. These elements, though smaller in market share individually, collectively form an integral part of the rare earth elements market, supporting various high-technology applications across multiple industries.
Segment Analysis: APPLICATION
Magnets Segment in Rare Earth Elements Market
The magnets segment dominates the global rare earth elements market, accounting for approximately 33% of the total market share in 2024. This segment's prominence is driven by its extensive applications across various industries, including computer hard drives, microwave power tubes, anti-lock brakes, automotive parts, disk drive motors, and power generation systems. Neodymium-iron-boron magnets, which are the strongest magnets known, are particularly crucial in this segment as they can store about 18 times more magnetic energy than traditional iron magnets of the same volume. The segment is experiencing robust growth due to increasing demand from electric vehicles and wind turbines, with nearly 85% of automakers now using neodymium-incorporated permanent magnet motors. Additionally, these magnets are essential components in consumer electronics, medical equipment like MRI machines, and various green technologies, making them indispensable in the modern technological landscape.
Remaining Segments in Application
The rare earth elements market encompasses several other significant application segments including catalysts, glass and polishing, metallurgy, ceramics, and phosphors. The catalysts segment holds substantial importance in petroleum refining and automotive emissions control, where elements like cerium and lanthanum play crucial roles. The glass and polishing segment utilizes rare earth compounds for manufacturing high-quality optical products and specialized glass applications. Metallurgy applications focus on enhancing material properties in steel and alloy production, while the ceramics segment serves various industrial and consumer applications. The phosphors segment, though smaller, remains vital for lighting and display technologies, contributing to the development of energy-efficient lighting solutions and advanced display technologies.
Rare Earth Elements Market Geography Segment Analysis
Rare Earth Elements Market in Asia-Pacific
The Asia-Pacific region dominates the global rare earth elements market, with significant production and consumption across various end-use industries. China leads the regional market, followed by Japan, India, and South Korea. The region's strong manufacturing base, particularly in the electronics, automotive, and renewable energy sectors, drives substantial demand for rare earth elements. Countries in this region have been focusing on developing their rare earth processing capabilities and implementing strategic policies to secure supply chains. The presence of major rare earth deposits and processing facilities further strengthens the region's position in the global market.
Rare Earth Elements Market in China
China maintains its position as the largest market for rare earth elements in the Asia-Pacific region, holding approximately 72% of the regional market share. The country's dominance is supported by its vast natural reserves, advanced rare earth processing capabilities, and robust downstream industries. China's rare earth industry is highly integrated, encompassing mining, processing, and manufacturing of end-products. The country's strategic policies regarding rare earth production and export quotas significantly influence global market dynamics. The domestic market is driven by strong demand from various sectors, including magnets, catalysts, and electronics manufacturing.
Rare Earth Elements Market in India
India emerges as one of the fastest-growing markets for rare earth elements in the Asia-Pacific region, with an expected growth rate of approximately 4% during 2024-2029. The country's market growth is driven by increasing industrialization and government initiatives to develop domestic rare earth processing capabilities. India's focus on expanding its manufacturing sector, particularly in the electronics and automotive industries, contributes to rising demand. The country's efforts to reduce dependency on imports through initiatives like "Make in India" and investments in rare earth processing infrastructure are expected to further boost market growth.
Rare Earth Elements Market in North America
The North American rare earth elements market is characterized by growing efforts to establish domestic supply chains and reduce dependency on imports. The United States and Canada are the key markets in this region, with significant investments in rare earth mining and processing capabilities. The region's market is driven by increasing demand from high-technology applications, defense industries, and the growing electric vehicle sector. Government initiatives to secure critical minerals supply chains have led to increased focus on developing domestic rare earth resources.
Rare Earth Elements Market in United States
The United States represents the largest market for rare earth elements in North America, accounting for approximately 80% of the regional market share. The country has been actively working to revitalize its domestic rare earth industry through strategic investments and policy support. The Mountain Pass mine in Nevada serves as a crucial domestic source of rare earth elements. The market is primarily driven by demand from advanced technology sectors, including electronics, defense applications, and renewable energy technologies.
Rare Earth Elements Market in Canada
Canada demonstrates strong growth potential in the North American rare earth elements market, with an expected growth rate of approximately 4% during 2024-2029. The country's market expansion is supported by increasing investments in rare earth mining projects and processing facilities. The Nechalacho mine, being the second rare earth mine in North America, positions Canada as an emerging player in the regional market. The country's focus on developing sustainable mining practices and processing technologies contributes to its growing importance in the global rare earth supply chain.
Rare Earth Elements Market in Europe
The European rare earth elements market is characterized by high demand from advanced manufacturing sectors and an increasing focus on sustainable sourcing. Germany, the United Kingdom, France, and Italy are the key markets in this region. The region's strong automotive, electronics, and renewable energy sectors drive consistent demand for rare earth elements. European countries are actively pursuing strategies to secure supply chains and develop recycling capabilities for rare earth elements.
Rare Earth Elements Market in Germany
Germany stands as the largest consumer of rare earth elements in Europe, driven by its robust manufacturing sector and advanced technology industries. The country's automotive sector, particularly its growing electric vehicle production, represents a significant end-user segment. Germany's focus on Industry 4.0 and renewable energy technologies further strengthens its position in the regional market.
Rare Earth Elements Market in France
France emerges as one of the fastest-growing markets for rare earth elements in Europe, supported by its expanding electronics and renewable energy sectors. The country's strategic investments in rare earth recycling technologies and sustainable sourcing initiatives contribute to market growth. France's focus on developing domestic capabilities for rare earth processing and its strong aerospace industry drive market expansion.
Rare Earth Elements Market in South America
The South American rare earth elements market is developing with a growing focus on exploring and utilizing domestic resources. Brazil and Argentina are the key markets in this region, with Brazil being both the largest and fastest-growing market. The region's market is driven by increasing industrialization and growing demand from various end-use industries, including automotive, electronics, and chemical sectors. Government initiatives to develop mining capabilities and attract investments in rare earth processing facilities contribute to market growth.
Rare Earth Elements Market in Middle East & Africa
The Middle East & Africa rare earth elements market shows growing potential with increasing industrial applications and exploration activities. Saudi Arabia and South Africa represent the key markets in this region, with Saudi Arabia emerging as both the largest and fastest-growing market. The region's market growth is supported by increasing investments in manufacturing sectors and growing awareness about the strategic importance of rare earth elements. Government initiatives to diversify economies and develop mining sectors contribute to market expansion.
Rare Earth Elements Industry Overview
Top Companies in Rare Earth Elements Market
The rare earth elements market is led by major players including Minmetals, Chalco, Lynas Rare Earths, Iluka, and Rare Element Resources, who have established strong vertical integration across the value chain. Rare earth companies are increasingly focusing on sustainable production methods, with several players implementing rare earth recycling operations to extract rare earth elements from mine waste. Strategic partnerships and long-term supply agreements with application industry participants have become crucial for maintaining market position. Operational expansion through new processing facilities and mining projects, particularly in regions outside China, demonstrates the industry's push for geographical diversification. Innovation in extraction and processing technologies, especially in developing environmentally friendly methods, has become a key differentiator among market leaders. Companies are also investing in research and development to improve processing efficiency and develop new applications for rare earth elements in emerging technologies.
China Dominates Global Supply and Processing
The rare earth elements market exhibits a unique structure with China controlling approximately eighty percent of global production, creating a concentrated supply landscape. The market is characterized by a mix of state-owned enterprises and private companies, with Chinese firms maintaining significant advantages in rare earth processing capabilities and cost structures. Market consolidation has been particularly evident in China, where government policies have encouraged mergers and acquisitions to create larger, more efficient operations. International players have been actively pursuing strategic partnerships and joint ventures to secure supply chains and reduce dependency on Chinese sources, leading to new projects in Australia, the United States, and other regions.
Recent years have witnessed increased merger and acquisition activities, particularly focused on securing mining rights and developing processing capabilities outside China. Companies from developed economies are investing in new projects and technologies to establish alternative supply chains, while Chinese companies are expanding their global footprint through strategic investments and partnerships. The industry is seeing a gradual shift towards a more diversified supply base, though Chinese dominance remains significant. Western companies are increasingly forming consortiums and strategic alliances to compete more effectively with established Chinese players, while also focusing on developing specialized products for high-tech applications.
Innovation and Sustainability Drive Future Growth
Success in the rare earth metals industry increasingly depends on developing sustainable extraction methods and establishing secure supply chains. Incumbent companies are focusing on vertical integration, from mining to processing and distribution, while also investing in research and development to improve rare earth extraction efficiency and reduce environmental impact. The ability to secure long-term supply contracts with end-users in growing sectors like electric vehicles and renewable energy has become crucial for market success. Companies are also investing in developing recycling technologies and circular economy solutions to address supply constraints and environmental concerns. The market's future will be shaped by the ability to adapt to stricter environmental regulations and meet growing demand from high-tech industries.
New entrants and smaller players can gain market share by focusing on specialized applications and developing innovative processing technologies. Success factors include establishing strategic partnerships with end-users, securing reliable raw material sources, and developing environmentally sustainable operations. The industry faces moderate substitution risk, primarily in specific applications where alternative materials or technologies are being developed. Regulatory frameworks, particularly environmental regulations and trade policies, will continue to play a crucial role in shaping market dynamics. Companies that can demonstrate strong environmental stewardship and maintain stable supply chains while meeting increasing quality requirements will be better positioned for long-term success.
Rare Earth Elements Market Leaders
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Iluka Resources Limited
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Lynas Rare Earths, Ltd.
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Minmetals Land Limited
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Rare Elements Resources Ltc.
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Aluminum Corporation of China Ltd.
*Disclaimer: Major Players sorted in no particular order
Rare Earth Elements Market News
- August 2022: Australia's Lynas Rare Earths Ltd unveiled a plan to expand capacity at its Western Australia-based Mt Weld mine having deposits of neodymium (Nd) and praseodymium (Pr). The company anticipates expansion work to begin by early 2023, with full operation planned for 2024.
- April 2022: Iluka Resources Ltd announced an investment worth USD 1.2 billion for developing the Eneabba Phase 3 rare earth refinery in Western Australia for the dedicated production of rare Earth oxides. The investment aims to make Iluka a strategic hub for the downstream processing of Australia's rare earth resources.
Rare Earth Elements Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 High Demand from Emerging Economies
4.1.2 Dependency of 'Green Technology' on Rare Earth Elements
4.2 Restraints
4.2.1 Inconsistent Supply of Rare Earth Elements
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Element
5.1.1 Cerium
5.1.1.1 Oxide
5.1.1.2 Sulfide
5.1.1.3 Other Elements
5.1.2 Neodymium
5.1.2.1 Alloy
5.1.3 Lanthanum
5.1.3.1 Alloy
5.1.3.2 Oxide
5.1.3.3 Other Elements
5.1.4 Dysprosium
5.1.5 Terbium
5.1.6 Yttrium
5.1.7 Scandium
5.1.8 Other Elements
5.2 Application
5.2.1 Catalysts
5.2.2 Ceramics
5.2.3 Phosphors
5.2.4 Glass and Polishing
5.2.5 Metallurgy
5.2.6 Magnets
5.2.7 Other Applications
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Aluminum Corporation of China Ltd
6.4.2 ARAFURA RESOURCES
6.4.3 Avalon Advanced Materials Inc.
6.4.4 Minmetals Land Limited
6.4.5 China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd
6.4.6 Eutectix
6.4.7 Iluka Resources Limited
6.4.8 Lynas Rare Earths Ltd
6.4.9 MEDALLION RESOURCES LTD
6.4.10 NORTHERN MINERALS
6.4.11 Peak Resources
6.4.12 Rare Element Resources Ltd
6.4.13 Rio Tinto
6.4.14 Shin-Etsu Chemical Co. Ltd
6.4.15 Ucore Rare Metals Inc.
6.4.16 Xiamen Tungsten Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Scandium Usage in Aerospace Applications
Rare Earth Elements Industry Segmentation
Rare Earth elements are used in loudspeakers, telescope lenses, studio lighting, and computer hard drives to make them smaller and more efficient. They are used in screens and displays as they can produce different colors. Rare Earth elements usually have high electrical conductivity, naturally occurring together in minerals. They are the strongest magnets available today.
The market is segmented by element, application, and geography. By element, the market is segmented into cerium, neodymium, lanthanum, dysprosium, terbium, yttrium and scandium, and other elements. By application, the market is segmented into catalysts, ceramics, phosphors, glass and polishing, metallurgy, magnets, and other applications. The report also covers the market sizes and forecasts for the rare earth elements market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done based on volume (ton).
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| Other Elements |
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| Catalysts | |
| Ceramics | |
| Phosphors | |
| Glass and Polishing | |
| Metallurgy | |
| Magnets | |
| Other Applications |
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Rare Earth Elements Market Research FAQs
How big is the Rare Earth Elements Market?
The Rare Earth Elements Market size is expected to reach 182.36 kilotons in 2025 and grow at a CAGR of 4.19% to reach 223.91 kilotons by 2030.
What is the current Rare Earth Elements Market size?
In 2025, the Rare Earth Elements Market size is expected to reach 182.36 kilotons.
Who are the key players in Rare Earth Elements Market?
Iluka Resources Limited, Lynas Rare Earths, Ltd., Minmetals Land Limited, Rare Elements Resources Ltc. and Aluminum Corporation of China Ltd. are the major companies operating in the Rare Earth Elements Market.
Which is the fastest growing region in Rare Earth Elements Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Rare Earth Elements Market?
In 2025, the Asia-Pacific accounts for the largest market share in Rare Earth Elements Market.
What years does this Rare Earth Elements Market cover, and what was the market size in 2024?
In 2024, the Rare Earth Elements Market size was estimated at 174.72 kilotons. The report covers the Rare Earth Elements Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Rare Earth Elements Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Rare Earth Elements Market Research
Mordor Intelligence provides a comprehensive analysis of the rare earth elements industry. We leverage our extensive experience in critical minerals and strategic metals research. Our expert analysts offer detailed insights into the entire value chain. This includes rare earth mining, rare earth extraction, and rare earth processing, as well as end-use applications. The report covers key elements such as lanthanide, neodymium, and dysprosium. We focus particularly on their applications in rare earth permanent magnets and other critical technologies. Our analysis encompasses both heavy rare earth elements and light rare earth elements. This provides stakeholders with crucial information about rare earth compounds and rare earth oxide markets.
The report, available as an easy-to-download PDF, offers stakeholders comprehensive insights into rare earth materials market dynamics and emerging trends. We examine crucial aspects such as rare earth recycling initiatives and rare earth separation technologies. Developments in permanent magnet applications are also covered. Our analysis includes major rare earth elements companies and their strategic positioning in the global market. The report explores the neodymium market dynamics and evaluates the growing importance of rare earth raw materials in the critical minerals industry. Stakeholders gain access to detailed forecasts, competitive analyses, and strategic recommendations. These support informed decision-making in this rapidly evolving sector.
