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 was valued at USD 12.44 Billion in 2024 and is projected to reach USD 37.06 Billion by 2033, growing at a CAGR of 12.83% between 2025 and 2033. This growth is driven by the increasing adoption of clean energy technologies and consumer electronics worldwide. China leads the market with a 58.3% share in 2024. The market is further boosted by demand for permanent magnets in electric vehicles, wind turbines, and other advanced technologies.

Study Assumption Years

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

Rare Earth Elements Market Key Takeaways

• Current Market Size: USD 12.44 Billion in 2024
• CAGR: 12.83% during 2025-2033
• Forecast Period: 2025-2033
• China dominated the market with a 58.3% share in 2024, benefiting from vast reserves and advanced refining capabilities.
• Magnets accounted for the highest application share at 31.2%, crucial for electric vehicles, wind turbines, and consumer electronics.
• The U.S. market is growing due to efforts to reduce reliance on Chinese imports, supported by government investments exceeding USD 28 million.
• Growing demand spans sectors including automotive, renewable energy, and electronics, driving global rare earth element utilization.

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Market Growth Factors

The widespread usage of rare earth elements, such as neodymium, lanthanum, cerium, praseodymium, yttrium, and dysprosium, in manufacturing magnets and catalysts across the automotive industry significantly stimulates market growth. For example, the global stock of electric cars surpassed five million in 2018, a 63% increase from 2017, which is driving the demand for permanent magnets used in batteries. This adoption supports efforts to reduce CO2 emissions and promotes clean energy technology that relies heavily on these elements.

The escalated production of nuclear reactors intensifies demand for rare earth elements like gadolinium. Key government energy projects, including a USD 14 million fusion energy research and USD 18 million transformative energy technologies funding by the U.S. Department of Energy, further boost market expansion. Praseodymium is increasingly used as an alloying agent with magnesium to manufacture high-strength metals for aircraft engines, supported by substantial investments such as GE Aviation's USD 4.3 billion for enhanced production capacity.

Expansion in consumer electronics, especially in Asia-Pacific, also propels the rare earth elements market. LED and LCD TV production in India raised from 8.75 million units in 2015 to 16 million in 2018, illustrating rising demand. Rare earths like lanthanum, cerium, and praseodymium improve electronics performance. Continuous technological advancements, strategic collaborations between mining and technology firms, and governmental focus on stable supply chains amid geopolitical tensions sustain growth.

Market Segmentation

By Application:

• Magnets: Hold a 31.2% market share, essential for electric vehicles, wind turbines, consumer electronics, and industrial automation. Made from neodymium, praseodymium, and dysprosium, these permanent magnets enhance efficiency and durability.

• NiMH Batteries
• Auto Catalysts
• Diesel Engines
• Fluid Cracking Catalyst
• Phosphers
• Glass
• Polishing Powders
• Others

Regional Insights

China dominates the Rare Earth Elements market with a 58.3% revenue share in 2024, leveraging vast reserves, well-developed mining, and refining infrastructure. The country benefits from integrated supply chains and supportive government policies such as export controls and production quotas. China's investments in research and development improve extraction efficiency, while lower production costs and strong domestic demand from electronics, electric vehicles, and renewable energy industries contribute to its market leadership.

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Recent Developments & News

• May 2025: The U.S. allocated over USD 439 Million under the Defense Production Act to build a domestic rare earth supply chain.
• April 2025: Canada's Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Mesa, Arizona for processing EV motor and hard drive.
• December 2024: Defense Metals released a Pre-feasibility Study for its Wicheeda Rare Earth Element Project.
• August 2024: University of Wyoming's Blockchain Center partnered with ClimateChain to enhance traceability of rare earth elements through Project NorthStar.
• April 2024: Saskatchewan Research Council signed a five-year agreement with Hung Thinh Group for importing 3,000 tons annually of rare earth carbonate.
• April 2024: MP Materials secured USD 58.5 Million to advance construction of the first U.S. integrated rare earth magnet manufacturing plant.
• March 2024: Australian Strategic Materials (ASM) partnered with Bechtel for the Dubbo Project, enhancing funding opportunities.
• January 2024: Kazakhstan announced plans to collaborate internationally to develop 15 rare earth deposits, aiming to boost 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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