Global Rare Earth Elements Market Report 2025: Size Projected USD 37.06 Billion, CAGR of 12.83% by 2033.

Market Overview

The global rare earth elements market size was valued at USD 12.44 Billion in 2024 and is projected to reach USD 37.06 Billion by 2033, exhibiting a CAGR of 12.83% from 2025 to 2033. China dominated with a market share of 58.3% in 2024. Growth is driven by clean energy transitions, increased consumer electronics use, and demand for permanent magnets essential in wind turbines, electric vehicles, and automotive catalysts. The 2022 price surge due to supply shortages and geopolitical tensions further boosted revenues.

Study Assumption Years

• Base Year: 2024
• Historical Period: 2019-2024
• Forecast Period: 2025-2033

Rare Earth Elements Market Key Takeaways

• Current Market Size: USD 12.44 Billion in 2024
• CAGR: 12.83% (2025-2033)
• Forecast Period: 2025-2033
• China held the largest market share with 58.3% revenue in 2024 supported by vast reserves, developed infrastructure, and integrated supply chains.
• Magnets accounted for the highest application revenue share of 31.2%, crucial in EVs, wind turbines, and consumer electronics.
• Demand growth is fueled by government's renewable energy policies and rising electric vehicle adoption globally.
• U.S. is strengthening domestic production aided by over USD 28 million in governmental investments and strategic partnerships.
• Technological advancements and collaborations among key players and governments focus on supply chain stability and environmental sustainability.

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Market Growth Factors

Though REEs are mostly known for their use in permanent magnets for clean energy systems, the major market driver for rare earths is actually the demand coming from the clean energy sector. Besides earth magnets, REEs are not only significant but also essential for manufacturing wind turbines and electric vehicle motor magnets, which are getting more and more popular due to the global sustainability targets. And it is not only governments that support renewable energy sources that create the massive need for metals like neodymium and dysprosium; it is also research that predicts dystop Demand could increase by as much as 2,600% and neodymium by 700% in the next 25 years. Moreover, battery and energy storage technology breakthroughs have increased not only REE use but also power systems efficiency and lifespan.

The ongoing transition in the automotive industry toward electrification is the major reason for the demand for light and heavy REEs in the whole vehicle. In the year 2021, about 85% of car makers were using motors with permanent magnets made from neodymium; thus, the automotive industry is the largest market for neodymium. The number has surpassed 5 million electric vehicles worldwide as of 2018 (which is a 63% increase compared to 2017), and the need for battery production and the regulation to reduce CO2 emissions have been the two key factors commonly linked to the REE market growth. The additional investment of more than $ 75 billion in U.S. car manufacturing expectance of fuel efficiency, emission reduction, and electronic upgrades, thus, indirectly promoting the use of rare earths.

The consumer electronics sector's growing appetite, especially in Asia-Pacific, proves to be the most powerful driver for rare earth elements demand. The lanthanum, cerium, and praseodymium are the key players in the production of smartphones, laptops, TVs, and audio systems, and they also provide the most attractive features such as clear sound and long battery life. Indian LED and LCD TV production, for instance, saw a surge from 8.75 million units in 2015 to 16 million units in 2018. A steady market expansion is supported by strategic partnerships, new mining projects, and government policies focusing on environmental sustainability and local sourcing that are favorable for the industry.

Market Segmentation

Analysis by Application:

• Magnets: Account for 31.2% market share; essential in electric vehicles, wind turbines, and consumer electronics for efficiency and durability.
• NiMH Batteries: Not provided in source.
• Auto Catalysts: Used in automotive catalytic converters; demand rising with vehicle production.
• Diesel Engines: Not provided in source.
• Fluid Cracking Catalyst: Not provided in source.
• Phosphers: Not provided in source.
• Glass: Rare earth elements used in glass manufacturing; specifics not detailed.
• Polishing Powders: Applied in polishing; details not provided.
• Others: Not specified.

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Regional Insights

China dominates the rare earth elements market with a 58.3% share in 2024, benefiting from vast reserves, advanced mining infrastructure, and an integrated supply chain from extraction to processing. Government policies such as export controls and investment in research enhance market influence. The region's strong demand from electronics, electric vehicles, and renewable energy sectors solidifies its leading position globally.

Recent Developments & News

• May 2025: The U.S. allocated over USD 439 Million through the Defense Department to build a complete domestic rare earth supply chain under the Defense Production Act, reducing import reliance.
• April 2025: Canada's Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Mesa, Arizona, to process from EV motors and hard drives, supporting supply balance amid trade tensions.
• December 2024: Defense Metals released the Wicheeda Rare Earth Element Project Pre-feasibility Study, with price projections from Argus Media; full report filed under NI 43-101 standards.
• August 2024: University of Wyoming's Blockchain Center collaborated with ClimateChain to track rare earth elements using blockchain for improved traceability and emission reduction.
• April 2024: Saskatchewan Research Council signed a five-year agreement with Vietnam's Hung Thinh Group to import 3,000 tons of rare earth carbonate annually.
• April 2024: MP Materials secured USD 58.5 Million to advance the U.S.'s first integrated rare earth magnet manufacturing facility in Fort Worth, Texas, targeting late 2025 production.
• March 2024: Australian Strategic Materials partnered with Bechtel for the Dubbo Project and signed a five-year agreement with USA Rare Earth to supply NdFeB alloy.
• January 2024: Kazakhstan plans collaboration to develop 15 rare earth deposits aiming at electronics and clean energy applications.

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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