Australia Rare Earth Elements Market Size, Share, Trends and Forecast by 2025-2033

Australia Rare Earth Elements Market Overview

Market Size in 2024: USD 348.32 Million
Market Size in 2033: USD 1,101.30 Million
Market Growth Rate 2025-2033: 12.20%

According to IMARC Group's latest research publication, "Australia Rare Earth Elements Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Australia rare earth elements market size reached USD 348.32 Million in 2024. Looking forward, IMARC Group projects the market to reach USD 1,101.30 Million by 2033, exhibiting a growth rate (CAGR) of 12.20% during 2025-2033.

How Critical Minerals Strategy and Clean Energy Demand are Reshaping the Future of Australia Rare Earth Elements Market

• Driving Clean Energy Demand: Global demand for magnet rare earth elements nearly doubled between 2015 and 2023, according to IEA's Global Critical Minerals Outlook 2024. This demand could double again by 2050, largely due to the growth of clean energy technologies like electric vehicles and wind turbines.
• Powering Processing Infrastructure: Lynas' AUD 800 million Kalgoorlie rare earths processing facility officially opened in Western Australia in November 2024. Meanwhile, Iluka Resources announced a USD 1.2 billion investment to develop the Eneabba Phase 3 rare earth refinery. This strengthens domestic processing capabilities.
• Improving Production Capacity: Australia's rare earths production reached 13,000 metric tons in 2024. The country holds the world's fourth-largest reserves and is set to increase output through new mining projects and expansion at existing facilities across multiple states.
• Attracting Strategic Investment: Processing facilities need investments over USD 500 million, which require patient capital and risk tolerance. Australia's Critical Minerals Strategy 2023-2030 offers opportunities for overseas investors to diversify supply chains and secure a reliable supply of critical minerals.
• Strengthening Market Position: The global rare earth market is projected to grow from about USD 5.3 billion in 2021 to over USD 12 billion by 2030. Australia is in a good position to capture a larger market share with expanded production and investments in processing infrastructure.

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Australia Rare Earth Elements Market Trends & Drivers:

Australia's rare earth elements market is growing rapidly due to rising global demand for clean energy technologies and efforts to reduce reliance on China. According to the International Energy Agency's Global Critical Minerals Outlook 2024, global demand for magnet rare earth elements nearly doubled from 2015 to 2023, with the potential to double again by 2050. This growth is mainly driven by clean energy technologies such as electric vehicles, wind turbines, and renewable energy storage systems. This record demand creates significant opportunities for Australian producers to supply these essential materials to global manufacturers. As of February 2024, the Australian government recognizes 31 resource commodities as critical minerals, with rare earth elements marked as key priorities for national economic development and energy security.

Developing domestic processing infrastructure represents a significant change for Australia's rare earth industry. It moves beyond just extracting raw materials to include higher-value processing and refining activities. Lynas' AUD 800 million Kalgoorlie rare earths processing facility opened in Western Australia in November 2024. This milestone enhances domestic processing capability, with the facility starting production of heavy rare earth dysprosium in May. Iluka Resources announced a USD 1.2 billion investment to develop the Eneabba Phase 3 rare earth refinery in Western Australia, showing strong industry confidence in Australia's processing potential. These major investments highlight that processing operations often need more than USD 500 million in capital. They require patient capital and government support, which Australia's Critical Minerals Strategy 2023-2030 aims to provide through strategic partnerships and financial incentives.

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Production expansion and reserve development are putting Australia in a vital position in global rare earth supply chains. Australia's rare earth production reached 13,000 metric tons in 2024, down from 16,000 metric tons in 2023. This decline reflects global price changes and market adjustments. Despite these short-term production changes, Australia has the world's fourth largest rare earth reserves and is set to increase output through new mining projects and expansions at existing facilities. The global rare earth market is projected to grow from about USD 5.3 billion in 2021 to over USD 12 billion by 2030. Australia is well-positioned to capture a larger share of this market through increased production and processing capabilities. Australia's Critical Minerals Strategy aims to build local capability, create diverse and resilient supply chains through international partnerships, and extract more value from resources while supporting the country's goal of becoming a renewable energy superpower.

Australia Rare Earth Elements Market Industry Segmentation:

The report has segmented the market into the following categories:

Product Type Insights:
• Light Rare Earth Elements (Lanthanum, Cerium, Praseodymium, Neodymium)
• Heavy Rare Earth Elements (Dysprosium, Terbium, Yttrium)
• Others

Application Insights:
• Permanent Magnets
• Catalysts
• Metallurgical Applications
• Glass & Ceramics
• Polishing Compounds
• Others

End User Industry Insights:
• Automotive & Electric Vehicles
• Renewable Energy (Wind Turbines)
• Electronics & Technology
• Defense & Aerospace
• Industrial Manufacturing
• Others

Processing Stage Insights:
• Mining & Extraction
• Mineral Processing
• Refining & Separation
• Value-Added Products
• Others

Grade Insights:
• High-Grade Concentrates
• Medium-Grade Concentrates
• Low-Grade Concentrates
• Others

Breakup by State:
• Western Australia
• Queensland
• New South Wales
• South Australia
• Northern Territory
• Victoria
• Tasmania
• Australian Capital Territory

Recent News and Developments in Australia Rare Earth Elements Market

• November 2024: Lynas' AUD 800 million Kalgoorlie rare earths processing facility officially opened in Western Australia, marking major milestone in domestic processing capability, while Lynas Malaysia facility commenced first production of heavy rare earth dysprosium in May 2024.
• April 2022: Iluka Resources announced USD 1.2 Billion investment for developing the Eneabba Phase 3 rare earth refinery in Western Australia for dedicated production, with full operation planned for 2024, demonstrating strong industry confidence in Australian processing infrastructure.
• 2024: Australia's rare earths production reached 13,000 metric tons holding world's fourth largest reserves, while global demand for magnet REE nearly doubled between 2015-2023 with potential to double again by 2050 driven by clean energy technologies.
• February 2024: Australian Government designated 31 resource commodities as critical minerals under the Critical Minerals Strategy 2023-2030, creating opportunities for overseas investors to diversify supply chains while building sovereign capability in processing and refining operations.

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