Rare Earth Elements Market Trends, Share, Growth Factors, and Forecast 2025-2033

Market Overview

The global rare earth elements market was valued at USD 12.44 Billion in 2024 and is projected to grow to USD 37.06 Billion by 2033, exhibiting a robust CAGR of 12.83% between 2025 and 2033. China leads the market with a 58.3% share in 2024, driven by the rising demand for clean energy technologies and consumer electronics. The sector benefits from surging needs in electric vehicles, wind turbines, and permanent magnets, supporting expansion in the automotive and renewable energy fields. The Rare Earth Elements Market is poised for significant growth fueled by these technologies.

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 in 2024
• CAGR: 12.83% from 2025 to 2033
• Forecast Period: 2025-2033
• China dominates with a 58.3% market share in 2024 due to vast reserves and strong supply chains.
• Magnets hold the largest application revenue share of 31.2%, crucial for EVs, wind turbines, and electronics.
• U.S. market growth is backed by government investments exceeding USD 28 million to reduce dependency on imports.
• Increasing demand from clean energy, electronics, and automotive sectors is driving steady market expansion.

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Market Growth Factors

The rare earth elements market is propelled by the rising adoption of clean energy technologies globally. REEs are vital in producing permanent magnets used in electric vehicle motors and wind turbine generators, both rapidly expanding due to sustainability goals. Governments actively promote renewable energy adoption, increasing demand for elements such as neodymium and dysprosium. Research indicates dysprosium demand could surge by 2,600% and neodymium by 700% over the next 25 years. Additionally, improvements in battery and energy storage technologies amplify REE consumption by enhancing efficiency and lifespan.

Growth is further stimulated by the rising usage of rare earth elements in the automotive sector, especially for permanent magnets and catalysts. In 2018, the global stock of electric cars exceeded five million, representing a 63% increase from the previous year, driving higher demand for battery production using REEs. The expanding airport and aircraft engine sectors also favor praseodymium usage as an alloying agent, with GE Aviation investing USD 4.3 billion to upscale engine production. Consumer electronics adoption, particularly in Asia-Pacific, strengthens demand further, with LED and LCD TV production in India rising to 16 million units in 2018, nearly doubling since 2015.

Technological advancements and strategic collaborations among key industry players accelerate market progress. Companies are partnering with defense contractors, renewable energy providers, and technology firms to secure reliable supply chains amid geopolitical challenges. Notable investments include Lynas Rare Earths' expansion at Mt Weld mine in Australia, Iluka Resources' USD 1.2 billion investment in a rare earth refinery, and Arafura Resources' development of a separation plant for its NdPr Project. These initiatives enhance processing capacities and foster environmentally sustainable methods.

Market Segmentation

Analysis by Application:

• Magnets: Account for the highest revenue share of 31.2%, essential for electric vehicles, wind turbines, and consumer electronics. Permanent magnets made from neodymium, praseodymium, and dysprosium enhance efficiency and durability in advanced technologies.
• NiMH Batteries: Included as a key application segment though specific details are limited.
• Auto Catalysts, Diesel Engines, Fluid Cracking Catalyst, Phosphers, Glass, Polishing Powders, Others: Listed application segments; no additional data detailed.

Regional Insights

China dominates the rare earth elements market with a 58.3% share in 2024, attributed to vast reserves, advanced mining infrastructure, and integrated supply chains. Its strategic policies, including export controls and investments in research, enhance extraction efficiency and foster sustainability. Domestic demand from electronics, electric vehicles, and renewable energy sectors supports this leadership position and influences global pricing and supply. The market outlook for China remains strong amid intensifying global demand.

Recent Developments & News

• May 2025: The U.S. allocated over USD 439 million through the Defense Production Act to develop a complete domestic rare earth supply chain, aiming to reduce import reliance.
• April 2025: Canada’s Cyclic Materials announced a USD 20 million rare-earth recycling plant in Mesa, Arizona, processing EV motor and hard drive scrap.
• December 2024: Defense Metals confirmed release of the Wicheeda Rare Earth Element Project Pre-feasibility Study, prepared by Hatch Ltd., with price projections from Argus Media.
• August 2024: University of Wyoming’s Blockchain Center partnered with ClimateChain on Project NorthStar to track rare earth elements and enhance supply chain sustainability.
• April 2024: Saskatchewan Research Council signed a five-year agreement with Hung Thinh Group (Vietnam) to import 3,000 tons of rare earth carbonate annually.
• April 2024: MP Materials secured USD 58.5 million to advance construction of the first integrated rare earth magnet manufacturing facility in the U.S., targeting production start by late 2025.
• March 2024: Australian Strategic Materials partnered with Bechtel for the Dubbo Project and strengthened funding opportunities via U.S. government support.
• January 2024: Kazakhstan announced plans to develop its 15 rare earth deposits with international partners, focusing on electronics and clean energy sectors.

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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