Rare Earth Metal Market

Government initiatives towards rare earth metals to fuel the rare earth metals market.

Due to their comprehensive qualities, such as high quality and distinctive traits, rare earth metals are in high demand across a variety of end-use sectors. The rare-earth elements (REEs) were previously only known to a very restricted group of individuals, including chemists, geologists, specialists in the field of materials science, and engineers.

Because of the public's recognition of the vital, specialized qualities that REEs contribute to modern technology, China's dominance in REE production and supply, and the international reliance on China for the majority of the world's REE supply, REEs have become more visible in the 21st century through a variety of media outlets. To overcome China’s dominance and extract rare earth metals in individual countries many government authorities planned policies for the betterment of the country.

Policies such as the Multilateral Minerals Security Partnership (MSP) were launched in June 2022 with the intention of uniting nations to create the strong key mineral supply chains required for achieving climate goals. The US, Canada, Australia, the Republic of Korea, Japan, and several European nations are involved in this alliance. Under The ONSHORE Manufacturing Act, the US government is a program for financial investments inside the US Department of Energy to offer financial support to commercial organizations primarily for the development of rare earth metallurgical/manufacturing facilities, where finished goods are created.

It establishes a multilateral investment fund for the Secretary of State to work with US allies to create safe global supply chains for rare earth.  Instructs the US Department of Labor (DOL) to launch a workforce development strategy to support education and training programs for all phases of the manufacturing of rare earth.  It also directs the President to submit a plan of action for expanding domestic product production and the development of technologies under the Defense Production Act, in consultation with appropriate government agency heads and industry stakeholders.

Prohibits "foreign entities of concern," such as those owned, controlled, or influenced by the DPRK, PRC, Russia, or Iran, as well as those thought to be engaging in behavior injurious to the national security or foreign policy of the US, from obtaining cash under the program. includes a clause allowing DOE to withhold payments from a recipient if they collaborate on research projects or exchange intellectual property with a problematic foreign firm.

The global demand for rare earth metals is projected to grow significantly, driven by increasing applications in renewable energy, electronics, and defense sectors

The Global Rare Earth Metals Market Industry is characterized by various trends and projections that reflect its growth potential. In 2024, the market is valued at 6.37 USD Billion, with expectations to reach 12.2 USD Billion by 2035. The compound annual growth rate (CAGR) from 2025 to 2035 is projected at 6.08%, indicating a steady increase in demand driven by technological advancements and sustainability initiatives. The market dynamics suggest a favorable environment for investments and innovations in rare earth metal applications, reinforcing the industry's significance in the global economy.

The Global Rare Earth Metals Market Industry experiences a surge in demand due to the increasing production of electric vehicles (EVs). Rare earth metals, such as neodymium and dysprosium, are essential for manufacturing high-performance magnets used in EV motors. As governments worldwide implement stricter emissions regulations and promote sustainable transportation, the EV market is projected to grow significantly. In 2024, the market value is estimated at 6.37 USD Billion, reflecting the industry's pivotal role in supporting the transition to greener technologies. This trend is expected to continue, with the Global Rare Earth Metals Market Industry poised to benefit from the expanding EV sector.

The Global Rare Earth Metals Market Industry is influenced by strategic stockpiling initiatives undertaken by various governments. Recognizing the geopolitical risks associated with rare earth supply chains, countries are increasingly investing in stockpiling rare earth metals to ensure national security and economic stability. This proactive approach aims to mitigate potential supply disruptions and enhance domestic production capabilities. As nations prioritize self-sufficiency in critical materials, the demand for rare earth metals is expected to rise. This trend not only supports the market's growth but also emphasizes the strategic importance of rare earth metals in global supply chains.

The Global Rare Earth Metals Market Industry benefits from the rapid technological innovations in electronics. Rare earth metals are integral to the production of various electronic devices, including smartphones, tablets, and computers. The increasing demand for advanced electronics, driven by consumer preferences for high-performance devices, propels the need for rare earth elements. As manufacturers seek to enhance device capabilities, the reliance on rare earth metals is expected to grow. This trend indicates a steady expansion of the market, with a projected compound annual growth rate (CAGR) of 6.08% from 2025 to 2035, reflecting the ongoing integration of rare earth metals in cutting-edge technologies.

The Global Rare Earth Metals Market Industry is likely to witness increased demand driven by advancements in renewable energy technologies. Rare earth elements are crucial for the production of efficient wind turbines and solar panels. As countries strive to meet renewable energy targets, the need for rare earth metals is expected to rise. For instance, the integration of rare earth magnets in wind turbine generators enhances energy efficiency and output. This growing emphasis on renewable energy solutions suggests a robust market trajectory, with projections indicating a market value of 12.2 USD Billion by 2035, underscoring the importance of rare earth metals in sustainable energy initiatives.

The Global Rare Earth Metals Market Industry is likely to expand due to emerging applications in defense and aerospace sectors. Rare earth metals are essential for manufacturing advanced materials used in military technologies, including precision-guided munitions and radar systems. As defense budgets increase globally, the demand for rare earth elements is expected to grow. Additionally, the aerospace industry relies on rare earth metals for lightweight materials that enhance fuel efficiency in aircraft. This dual demand from both sectors indicates a robust growth trajectory for the Global Rare Earth Metals Market Industry, highlighting the critical role of these materials in national defense and technological advancements.

By Region, the study segments the rare earth metals market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The rare earth metals industry in Asia-Pacific is likely to make the region the largest expanding global market for rare earth metals. APAC, particularly China, has historically been the dominant player in rare earth metal production. China possesses significant rare earth reserves and has been the largest producer and exporter of these metals. Its production dominance has contributed to shaping the global rare earth metal market dynamics.

China's control over the production and supply chain of rare earth metals has influenced market dynamics. Its dominance has led to concerns about supply security and price volatility, prompting other countries to seek diversification and develop their own rare earth metal sources. APAC, specifically countries like Japan, South Korea, and Taiwan, is a major manufacturing hub for high-tech industries. These industries heavily rely on rare earth metals for applications such as electronics, automotive, renewable energy, and telecommunications. The growth and expansion of these industries in APAC have fueled the demand for rare earth metals. 

The rare earth metal market in India is poised for growth, driven by increasing demand in electronics, renewable energy, and defense sectors

Figure 3: RARE EARTH METALS MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

January, 2021,

Geomega Resources Inc. had announced the successful completion of testing and optimization of its Rare Earths Pilot Plant (“Pilot Plant”), located at the National Research Council Canada facility in Boucherville, Quebec. This is the 2nd generation pilot plant after the completion of the mini-pilot in April 2019.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the rare earth metals market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Rare Earth Metals Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global rare earth metals industry to benefit clients and expand the Decorative Laminates market sector is partnerships and acquisitions. The market for rare earth metals offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the Rare Earth Metals Market are Iluka Resources (Australia), Lynas Rare Earths Ltd. (Malaysia), Jiangsu Huahong Technology Co., Ltd. (China), Solvay (Belgium), Hitachi Metals Ltd. (Japan), Geomega Resources Inc. (Canada), Shenghe Resources Holdings Co., Ltd. (China), GanZhou QianDong Rare Earth Group Co. Ltd. (China), and Sigma-Aldrich (United States).

To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

Iluka Resources (Iluka) is an Australian-based resources company, specialising in mineral sands exploration, project development, operations and marketing. Iluka has projects and operations in Australia and a globally integrated marketing network. Exploration activities are conducted internationally and Iluka is actively engaged in the rehabilitation of previous activities in the United States and Australia. Iluka holds a 20% stake in Deterra Royalties, the largest ASX-listed resources focused royalty company. The company’s key assets and operations are situated in Australia, Sierra, with a mining and processing operation in Virginia, the US. Iluka is the largest producer of zircon in the world.

It also produces titanium dioxide minerals such as rutile, ilmenite, synthetic rutile, zircon and other titaniferous concentrates. The company’s products find application in a diverse range of sectors such as consumer, industrial, manufacturing, aircraft and healthcare.

Lynas Rare Earths Ltd is one of the leading producers of separated Rare Earths. The rare earth deposit in Mt Weld, Western Australia, is acknowledged as one of the world's highest grade rare earth mines. The company operates the world’s largest single rare earth processing plant in Malaysia. Lynas Rare Earths Ltd rare earth oxides are mined and initially processed at Mt Weld Concentration Plant. The materials are supplied to a 100-hectare advanced materials plant in Gebeng, Malaysia, where the concentrate is separated and processed to produce high-quality rare earth materials.