Rare Earth Metal Market Size

Global Rare Earth Metals Market Overview

Rare Earth Metals Market Size was valued at USD 6,000 million in 2023. The Rare Earth Metals industry is projected to grow from USD 6,370 million in 2024 to USD 10,210 million by 2032, exhibiting a compound annual growth rate (CAGR) of 6.08% during the forecast period (2024 - 2032). The primary force behind the growth of the rare earth metals market worldwide is the government initiatives towards rare earth metals. Rare earth metals, also known as rare earth elements (REEs), are a group of 17 chemically similar elements in the periodic table. Despite their name, rare earth metals are relatively abundant in the Earth's crust, but they are rarely found in concentrated deposits, making them economically valuable and challenging to extract.

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

Rare Earth Metals Market Trends

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  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.

Rare Earth Metals Market Segment Insights:

Rare Earth Metals by Type Insights

The Rare Earth Metals Market segmentation, based on type has been segmented as cerium, dysprosium, erbium, europium, neodymium, holmium, lanthanum, lutetium, and others. Among these, cerium is projected to dominate the Rare Earth Metals Market revenue through the projected period. Cerium is widely used as a catalyst in various industrial processes. It exhibits excellent redox properties, making it effective in catalytic converters used in automobiles to reduce emissions. The demand for catalytic converters has been increasing due to stricter environmental regulations worldwide, particularly in the automotive sector. As a result, the demand for cerium has also risen significantly. Cerium oxide, also known as ceria, is a key component in polishing applications. It is used for polishing glass, optics, and other precision surfaces. The rise of the electronics industry, including the production of smartphones, tablets, and display screens, has driven the demand for cerium-based polishing compounds.

January 2023, Swedish mining company LKAB discovered one million metric tons of rare earth oxides, which are used in electric vehicles and wind turbines.

Rare Earth Metals by Application Insights

The Rare Earth Metals Market segmentation, based on application, the market is segmented as metallurgy, batteries, magnets, glass & ceramics, polishing agents, and others. Out of which the magnets segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Rare earth magnets are critical components in electric motors used in numerous applications, including electric vehicles (EVs), hybrid vehicles, industrial machinery, and consumer electronics. These magnets provide high magnetic strength while maintaining compact size and efficiency, leading to improved motor performance and energy savings. The growing demand for EVs and other electric-powered technologies has resulted in increased demand for rare earth magnets. Rare earth magnets are utilized in the generators of wind turbines, enabling efficient power generation. The strong magnetic field created by these magnets helps convert the mechanical energy of wind into electrical energy. As the demand for renewable energy continues to grow, so does the demand for wind turbines, thereby driving the demand for rare earth magnets.

Figure 2: Rare Earth Metals Market, by Application, 2023 & 2032 (USD Million)

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

February 2022, San Diego-based index development firm EQM Indexes LLC is launching a new index, the EQM Rare Earths & Critical Materials Index (CRITNTR) providing exposure to global public companies generating significant revenues from rare earth metals or critical materials mining, production, recycling, processing or refining.

Rare Earth Metals Regional Insights

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.

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.

Rare Earth Metals Key Market Players & Competitive Insights

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): 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: 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.

Key Companies in the Rare Earth Metals Market includes

• 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)


• Sigma-Aldrich (United States)

Rare Earth Metals Industry Developments

February 2021: Lynas Rare Earths Ltd signed an agreement with the US Government to develop a Light Rare Earth separation facility in the United States. Production of rare earth minerals, used to make military equipment and electronics, received a push in the U.S. after the trade war with China fueled worries that Beijing may use its dominance to restrict supply.

May 2021, Geomega Resources had announced that Innord, a wholly-owned subsidiary of Geomega resources, has developed a bench-scale process that is based on environmentally friendly technology to process bauxite residues. The company has also entered into an agreement with an industrial partner to extract rare earth elements, scandium, and other critical, valuable metals from this readily available material. 

February 2021: Geomega Resources Inc. and Everwin Magnetics Co., Ltd (“Everwin”), a subsidiary of Forte Mobility Co., Ltd, had announced that they have entered into a Letter of Intent (LOI) to recycle rare earth-containing production waste from Everwin’s future production facilities in Ontario, Canada. Everwin is developing the first NdFeB magnet production facility in Canada that will go from machining to surface treatment and is targeting to start with approximately 300 tonnes of the annual production of rare earth magnets.

Rare Earth Metals Market Segmentation

Rare Earth Metals Type Outlook

• Cerium


• Dysprosium


• Erbium


• Europium


• Neodymium


• Holmium


• Lanthanum


• Lutetium


• Others

Rare Earth Metals Application Outlook

• Metallurgy


• Batteries


• Magnets


• Glass & Ceramics


• Polishing Agents


• Others

Rare Earth Metals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • Russia
  
  
  • Italy
  
  
  • France
  
  
  • Spain
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • South Africa
  
  
  • GCC Countries
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America