United States Rare Earth Metals Market to Grow at 9.0% CAGR, Driven by Electronics, Clean Energy & Defense Applications

Leander, Texas, United States - Nov.19.2025
As per DataM intelligence research report" Global Rare Earth Metals market to grow at a CAGR of 9.0% during the forecast period 2024- 2031.". Demand for advanced electronics, defense systems, and renewable energy technologies is pushing rare earth metals to the forefront.

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United States: Recent Industry Developments

✅ In November 2025, MP Materials expanded production of rare earth metals at its Mountain Pass facility, focusing on neodymium and praseodymium for electric motors and magnets. The initiative supports U.S. supply chain resilience and clean energy goals. This development strengthens MP Materials' leadership in domestic rare earth production.

✅ In October 2025, Lynas USA launched advanced processing capabilities for rare earth oxides, improving extraction efficiency and environmental compliance. The technology enables reliable supply for defense and EV sectors. This reinforces Lynas' position in the U.S. rare earth metals market.

✅ In September 2025, Texas Mineral Resources Corp. initiated pilot-scale production of light rare earth elements for high-tech and renewable energy applications. The program enhances strategic material availability. This positions Texas Mineral Resources as a key innovator in U.S. rare earth supply.

✅ In August 2025, Chevron Technology Ventures invested in rare earth separation and refining technologies, targeting sustainable production for clean energy and electronics. The solutions reduce environmental footprint and enhance supply security. This strengthens Chevron's role in U.S. rare earth materials innovation.

Japan: Recent Industry Developments

✅ In November 2025, Toyota Tsusho expanded rare earth metal sourcing and recycling initiatives for electric vehicles and hybrid systems. The efforts improve supply security and reduce environmental impact. This development reinforces Toyota Tsusho's leadership in Japan's strategic materials sector.

✅ In October 2025, Sumitomo Metal Mining launched new extraction and refining technologies for neodymium, praseodymium, and dysprosium. The initiatives enhance efficiency and support domestic high-tech industries. This positions Sumitomo Metal Mining as a key player in Japan's rare earth market.

✅ In September 2025, Dowa Holdings introduced advanced separation and recovery processes for rare earth metals from industrial waste streams. The solutions improve resource efficiency and sustainability. This strengthens Dowa Holdings' presence in Japan's circular materials economy.

✅ In August 2025, Hitachi Metals expanded rare earth alloy production for magnets and electronic components, focusing on high-performance and eco-friendly solutions. The development supports Japan's clean energy and electronics sectors. This reinforces Hitachi Metals' role in advanced materials innovation.

Rare Earth Metals Market: Drivers

The rare earth metals market is witnessing strong growth driven by their critical applications in advanced technologies, renewable energy, and defense sectors. These metals, including neodymium, dysprosium, and lanthanum, are essential for manufacturing permanent magnets, electric vehicle motors, wind turbines, and high-performance electronics. Increasing global demand for clean energy solutions, electric vehicles, and smart devices is fueling consumption of rare earth metals. Supply chain diversification, strategic mining investments, and geopolitical considerations are influencing market dynamics. Additionally, ongoing research into sustainable extraction, recycling, and substitution technologies is further shaping the market landscape.

Technological advancements in permanent magnet design, battery technology, and electronics are expanding the applications of rare earth metals across automotive, aerospace, and consumer electronics sectors. Governments and industries are focusing on securing domestic supply chains to reduce dependency on imports and enhance strategic autonomy. Growing adoption of electric and hybrid vehicles, wind energy installations, and advanced defense systems is driving consistent demand. Innovations in recycling processes and circular economy approaches are supporting sustainability and cost-efficiency. With rising technological adoption, strategic importance, and environmental focus, the rare earth metals market is poised for sustained global growth.

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Rare Earth Metals Market: Major Players

Lynas Corporation, Neo Performance Materials, Inc., Arafura Resources Limited, Avalon Advanced Materials Inc., Rare Elements Resources Ltd., Greenland Minerals and Energy Ltd., Alkane Resources Ltd., Hefa Rare Earth Co. Ltd., Medallion Resources and Indi

Segment Covered in the Rare Earth Metals Market:

By Type
Neodymium leads with 28% share, driven by its critical role in high-performance permanent magnets used across EVs, wind turbines, and electronics. Cerium follows with 19%, supported by strong demand in glass polishing, catalysts, and automotive applications. Lanthanum accounts for 14%, widely used in battery alloys and optical components. Praseodymium, samarium, gadolinium, terbium, dysprosium, yttrium, and others collectively hold 39%, each contributing to specialty magnets, phosphors, ceramics, medical imaging, and advanced alloys.

By Application
Permanent magnets dominate with 37% share, driven by rapid growth in electric vehicles, robotics, industrial motors, and renewable energy systems. Catalysts hold 21%, supported by strong use in automotive catalytic converters and petroleum refining. Metallurgy captures 15%, benefiting from alloying applications in aerospace and defense sectors. Glass polishing represents 13%, while phosphors and ceramics together account for 14%, driven by lighting, displays, electronics, thermal barriers, and high-tech manufacturing.

Regional Analysis

North America - 24% Share
North America holds 24% share, driven by strong demand from electric vehicles, defense technologies, and wind energy. The U.S. is actively investing in domestic rare earth processing to reduce reliance on imports. Growing support for supply-chain diversification strengthens the market outlook. Adoption across electronics and industrial applications continues rising steadily.

Europe - 22% Share
Europe accounts for 22% share, supported by stringent sustainability goals, rising EV production, and renewable energy expansion. Germany and France lead demand for high-performance magnets in automotive and industrial equipment. The EU's strategic raw materials initiatives boost regional sourcing efforts. Advanced electronics and wind power installations continue to drive rare earth consumption.

Asia Pacific - 42% Share
Asia Pacific dominates with 42% share, driven by China's leadership in mining, refining, and magnet manufacturing. Japan and South Korea contribute significantly through electronics, automotive, and robotics production. Expanding EV manufacturing and renewable energy projects accelerate demand across the region. Strong government support for high-tech sectors sustains long-term growth.

Latin America - 4% Share
Latin America holds 4% share, with emerging rare earth exploration efforts in Brazil and Argentina. Growing adoption in automotive, electronics imports, and industrial machinery supports moderate market expansion. Limited domestic processing capacity keeps reliance on imports high. Investment interest in mining projects is gradually increasing.

Middle East - 3% Share
The Middle East accounts for 3% share, driven by rising demand for catalysts in oil refining and industrial applications. Infrastructure development boosts consumption in electronics and advanced materials. Countries in the GCC are exploring diversification through specialty materials manufacturing. Adoption remains steady but relatively small.

Africa - 5% Share
Africa holds 5% share, supported by growing mining activities in countries such as Madagascar, South Africa, and Malawi. Local rare earth resources attract increasing global investment. Demand is driven by construction, electronics imports, and industrial expansion. Infrastructure challenges limit rapid growth but long-term potential remains strong.

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