Rare Earth Element Market Research Report By Application (Electronics, Magnets, Aerospace, Catalysis, Energy Storage), By Type (Light Rare Earth Elements (LREEs), Heavy Rare Earth Elements (HREEs)), By Extraction Method (Hard Rock Mining, Ion Exchange, Solvent Extraction), By End-User Industry (Automotive, Electronics, Energy, Aerospace and Defense) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Rare Earth Element Market Overview

The Rare Earth Element Market Size was estimated at 6.28 (USD Billion) in 2022.The Rare Earth Element Industry is expected to grow from 7.18(USD Billion) in 2023 to 24.0 (USD Billion) by 2032. The Rare Earth Element Market CAGR (growth rate) is expected to be around 14.35% during the forecast period (2024 - 2032).

Key Rare Earth Element Market Trends Highlighted

The rising demand for Rare Earth Elements (REEs) stems from their crucial role in various high-tech industries, particularly in renewable energy applications such as electric vehicles, wind turbines, and energy-efficient lighting. The growing adoption of these technologies is expected to drive the demand for REEs in the years ahead.Strategic geopolitical considerations have also emerged as a key market trend. The concentration of REE production in a few countries, primarily China, has highlighted the need for diversification of supply chains and the exploration of new mining and refining capabilities in different regions. Governments and industries are actively seeking alternative sources to mitigate potential supply disruptions and secure access to these critical elements.

Recent years have witnessed a rise in REE exploration and mining activities, as well as advancements in extraction and processing technologies. These developments are aimed at increasing the efficiency and cost-effectiveness of REE production, while addressing environmental and sustainability concerns. The growing focus on ethical and responsible sourcing practices is also driving the demand for REEs from suppliers who adhere to environmental and social governance (ESG) standards.

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

Rare Earth Element Market Drivers

Increasing Demand for Electronics and Clean Energy Technologies

The increased growth of electronics use, especially smartphones, laptops, and electric cars, has necessitated the demand shift for the rare earth elements market. The article claims that the rare earth elements, REEs, are required in various electronic devices and clean energy technologies. For instance, in electronic devices, they are used as permanent magnets, rechargeable batteries, and luminous displays. Additionally, REEs are applicable in the production of wind turbines and solar panels.The transition to a green energy supply will facilitate this demand rise. As such, the market share will rise to $24.0 billion with an annual growth rate of 14.35% from 2024 to 2032. The vast market size has intensified the REE demand. Similarly, the demand rise for REEs can be attributed to the emergence of new economies like China and India. These economies are characterized by escalated industrialization and urbanization which require a larger portion of electronic devices and clean energy technologies.As the trend grows, it is imperative to posit that the future demand for REEs will remain higher. Additionally, the current world market is highly concentrated, with China representing 90% of the entire capacity. This concentration endows China with an upper hand in determining the prices at a higher scale. Conversely, there has been the inception of a new mining process in various countries, including the United States, Canada, and Australia. This strategy will increase the REEs supply, thus stabilizing it in the future.

Government Support for Rare Earth Element Development

Rare earth elements are increasingly recognized by governments worldwide as an important element, which needs to be supported. One of the forms of support is the funding of research and development. It includes policies which facilitate investment in rare earth element mining and processing. For example, the United States has designated rare earth elements as critical minerals and has provided funding of research and development which reasonably supports its domestic industry.The European Union has also developed a strategy for the securing supply of rare earth elements and funding of research and development. Overall, it is likely that the development of the industry will be highly influenced by government support.

Technological Advancements in Rare Earth Element Extraction and Processing

Technological advancements are making it possible to extract and process rare earth elements more efficiently and cost-effectively. This is leading to an increase in the supply of rare earth elements and a decrease in prices. For example, new solvent extraction techniques are being developed that can extract rare earth elements from ores more efficiently. In addition, new processing techniques are being developed that can produce rare earth elements in higher purities.These technological advancements are expected to continue to drive the growth of the rare earth element industry.

Rare Earth Element Market Segment Insights

Rare Earth Element Market Application Insights 

The application segment of the Rare Earth Element Market holds significant growth potential, driven by the increasing demand for rare earth elements in various industries. Electronics emerged as the leading application segment in 2023, accounting for nearly 30% of the market revenue. The growing adoption of rare earth elements in smartphones, laptops, and other electronic devices is fueling segment growth. Magnets, another significant application segment, is expected to witness a robust CAGR of 12.5% during the forecast period, owing to the rising demand for rare earth magnets in electric vehicles, wind turbines, and medical devices.Aerospace and catalysis are two other important application segments for rare earth elements. The aerospace industry utilizes rare earth elements in the production of high-performance alloys and components, contributing to the segment's growth. Similarly, the catalysis segment is driven by the increasing demand for rare earth elements in catalytic converters and other emission control systems. Energy storage is an emerging application segment for rare earth elements, particularly in the development of high-capacity batteries for electric vehicles and renewable energy systems.The growing emphasis on sustainability and the transition towards cleaner energy sources is expected to drive the adoption of rare earth elements in energy storage applications, contributing to the overall market growth. Overall, the application segment of the Rare Earth Element Market offers diverse opportunities for growth. The increasing demand for rare earth elements in electronics, magnets, aerospace, catalysis, and energy storage applications is poised to drive market expansion in the coming years.

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

Rare Earth Element Market Type Insights 

Rare Earth Element Market is classified by type into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HRER). LREEs include lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium. HREEs include gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium. However, LREEs are more abundant and cheaper than HREEs and are utilized in a broader purpose such as a catalyst, phosphor, and magnet. In contrast, HREEs are utilized in a narrower sector for laser, superconductor, and medical imaging, and so on. Currently, the former market is more developed than the latter, and the LREE segment continuously occupies the majority of the market.The reason for the large share of this element type in the market is the increasing demand for LREEs that can replace electric vehicles and various green energy solutions and products because users are environmentally friendly and LREE is relatively cheaper. The other reason is that the demand for HREEs that go into electronic products and medical equipment is increasing, and the growth rate of the HREE market is relatively high compared to the LREE market. In addition, it is estimated that the Rare Earth Element Market will grow at a CAGR of 10.2% from 2024 to 2030 due to the recent expansion of demand and various purposes.

Rare Earth Element Market Extraction Method Insights 

The Rare Earth Element Market is projected to reach USD 12.56 billion by 2026, exhibiting a CAGR of 10.2% during the forecast period. Extraction Method is a key market segment, with Hard Rock Mining, Ion Exchange, and Solvent Extraction being the primary methods used to extract rare earth elements. Hard Rock Mining accounted for the largest market share in 2023, due to its cost-effectiveness and wide applicability. However, Ion Exchange is expected to witness significant growth over the forecast period, owing to its high efficiency and selectivity.Solvent Extraction, on the other hand, is a versatile technique that can be used to extract a wide range of rare earth elements, and is expected to gain traction in the coming years. The market dynamics are influenced by factors such as rising demand for rare earth elements in various industries, technological advancements, and government regulations. Key players in the market include China, the United States, and Australia, which collectively account for a majority of the production.

Rare Earth Element Market End-User Industry Insights 

The end-user industry segment plays a pivotal role in shaping the dynamics of the Rare Earth Element Market. Among the key end-user industries, automotive, electronics, energy, aerospace and defense stand out as major contributors to market growth. The automotive industry, with its increasing demand for electric vehicles and hybrid powertrains, is a significant consumer of rare earth elements. In 2023, the automotive segment accounted for approximately 24% of the Rare Earth Element Market revenue, and this share is projected to grow steadily in the coming years.The electronics industry, driven by the proliferation of smartphones, laptops, and other electronic devices, is another major end-user of rare earth elements. In 2024, the electronics segment is expected to account for around 20% of the market revenue. The energy sector, particularly in the development of renewable energy technologies such as wind turbines and solar panels, is also a key consumer of rare earth elements. The aerospace and defense industry, with its demand for high-performance materials used in aircraft and military equipment, is another significant end-user segment.These end-user industries are expected to continue driving the growth of the Rare Earth Element Market, with an increasing demand for rare earth elements in various applications.

Rare Earth Element Market Regional Insights 

The regional segmentation of the Rare Earth Element Market offers valuable insights into the market's growth dynamics and competitive landscape. North America held a dominant position in the market in 2023, accounting for approximately 40% of the revenue. This dominance is attributed to the region's well-established manufacturing base, technological advancements, and high demand from various industries. Europe accounted for around 30% of the market share, driven by stringent environmental regulations and the presence of major automotive and electronics industries.Asia-Pacific (APAC) is projected to exhibit the highest growth rate during the forecast period, owing to the region's rapidly growing manufacturing sector and increasing demand for rare earth elements in electronics, clean energy, and other applications. South America and the Middle East and Africa (MEA) are expected to contribute a smaller, yet significant, share of the overall market, with growth opportunities driven by infrastructure development and emerging industries in these regions.

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

Rare Earth Element Market Key Players and Competitive Insights

Major players in Rare Earth Element Market are constantly striving to gain a competitive edge in the industry. Leading Rare Earth Element Market players are investing heavily in research and development to create innovative products and technologies. The Rare Earth Element Market industry is witnessing a growing number of mergers and acquisitions, as companies seek to expand their market share and capabilities. These developments are shaping the Rare Earth Element Market Competitive Landscape, making it increasingly competitive and dynamic.Lynas Rare Earths Limited is a leading company in the Rare Earth Element Market. The company is involved in the exploration, extraction, and processing of rare earth minerals. Lynas Rare Earths Limited has a strong presence in Australia, Malaysia, and the United States. The company is focused on expanding its operations and increasing its production capacity to meet the growing demand for rare earth elements. Lynas Rare Earths Limited is committed to sustainable practices and has implemented a number of initiatives to reduce its environmental impact.China Minmetals Corporation is a major competitor in the Rare Earth Element Market. The company is a state-owned enterprise that is involved in the mining, processing, and trading of rare earth minerals. China Minmetals Corporation has a strong presence in China and has been expanding its operations globally. The company is focused on developing new technologies and products to meet the growing demand for rare earth elements. China Minmetals Corporation is committed to sustainable practices and has implemented a number of initiatives to reduce its environmental impact.

Key Companies in the Rare Earth Element Market Include

• Jiangxi Ganfeng Lithium Co., Ltd.


• Rare Element Resources Ltd.


• Segou Resources Operation Pty Ltd


• Ucore Rare Metals Inc.


• China Northern Rare Earth (Group) HighTech Co., Ltd.


• Shenghe Resources Holding Co., Ltd


• Vital Materials Inc


• Arafura Resources Limited


• MP Materials Corp.


• Alkane Resources Ltd.


• Australian Strategic Materials Ltd


• Northern Minerals Ltd


• Lynas Rare Earths Ltd


• Great Western Minerals Group Ltd.


• Taku Resources

Rare Earth Element Market Industry Developments

The Rare Earth Element (REE) market is projected to grow from an estimated valuation of USD 7.18 billion in 2023 to approximately USD 24.0 billion by 2032, exhibiting a CAGR of 14.35%. This growth is primarily attributed to the rising demand from various industries, including electronics, automotive, and renewable energy.Recent developments in the REE market include investments in production and processing facilities, as well as research and development initiatives to enhance efficiency and reduce environmental impact. Key players in the market are focusing on expanding their operations and forming strategic partnerships to meet the increasing demand. Government regulations and environmental concerns are also shaping the market landscape, driving the adoption of sustainable practices and responsible sourcing of REEs.

Rare Earth Element Market Segmentation Insights

Rare Earth Element Market Application Outlook

• Electronics


• Magnets


• Aerospace


• Catalysis


• Energy Storage 

Rare Earth Element Market Type Outlook

• Light Rare Earth Elements (LREEs)


• Heavy Rare Earth Elements (HREEs) 

Rare Earth Element Market Extraction Method Outlook

• Hard Rock Mining


• Ion Exchange


• Solvent Extraction 

Rare Earth Element Market End-User Industry Outlook

• Automotive


• Electronics


• Energy


• Aerospace and Defense 

Rare Earth Element Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa