Global Rare Earth Elements Market Edition 2025: Industry Size to Reach USD 37.06 Billion by 2033, CAGR of 12.83%.

Market Overview

The global rare earth elements market size was valued at USD 12.44 Billion in 2024 and is expected to reach USD 37.06 Billion by 2033, with a CAGR of 12.83% during the forecast period 2025-2033. China dominates the market with a 58.3% share due to its advanced extraction and processing capabilities. Growth is driven by the rising adoption of clean energy technologies like electric vehicles and wind turbines, along with expanding use in consumer electronics worldwide. The 2022 price surge from supply shortages also boosted market 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 of 58.3% in 2024 due to dominant mining and refining infrastructure.
• Magnets accounted for the highest application revenue share of 31.2%, being critical for electric vehicles, wind turbines, and consumer electronics.
• Dysprosium demand is projected to increase by 2,600% and neodymium by 700% over the next 25 years.
• The U.S. is boosting domestic production and diversification efforts with government investment exceeding USD 28 million.

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Market Growth Factors

The growing demand for clean energy technologies strongly propels the rare earth elements market. REEs such as neodymium and dysprosium are crucial in producing permanent magnets used in electric vehicle motors and wind turbines, which are expanding rapidly due to global sustainability targets. Governments' focus on renewable energy adoption drives the need for high-performance materials. Research indicates dysprosium demand could rise by 2,600% while neodymium demand could increase by 700% over the next 25 years. Additionally, advancements in battery and energy storage technologies further enhance REE usage, improving next-generation power system efficiency and lifespan.

The widespread application of rare earth elements in automotive and electronics sectors fuels market expansion. Electric vehicles’ growth to lower CO2 emissions has stimulated the use of permanent magnets in batteries. The global electric car stock surpassed five million in 2018, a 63% increase from the previous year. The rise in consumer electronics, including LED and LCD TVs which doubled production in India from 2015 to 2018, increases demand for elements like lanthanum, cerium, and praseodymium. Furthermore, praseodymium’s use as an alloying agent with magnesium to produce high-strength metals for aircraft engines supports market growth, alongside increased aircraft production requiring advanced materials.

Technological advancements and strategic collaborations among key players invigorate market dynamics. Companies are forming partnerships with end-users from defense, technology, and renewables, while working with government bodies to stabilize supply chains amid geopolitical sensitivities. Notable investments include Lynas Rare Earths Ltd expanding capacity at the Mt Weld mine in Australia, Iluka Resources Ltd committing USD 1.2 Billion to develop a rare earth refinery, and Arafura Resources Ltd developing a separation plant for its Nolans NdPr Project. These efforts enhance downstream processing capabilities and production capacity, supporting sustained market growth.

Market Segmentation

By Application:

• Magnets: Account for 31.2% of the market revenue driven by their vital role in electric vehicles, wind turbines, and consumer electronics. Permanent magnets made from neodymium, praseodymium, and dysprosium improve efficiency and durability in advanced technologies and industrial automation.
• NiMH Batteries: Used in automotive and electronics sectors, supporting growth in electric and hybrid vehicle applications.
• Auto Catalysts: Essential for emission control and fuel efficiency in automotive engines.
• Diesel Engines: Applications include catalysts and components requiring rare earth elements to enhance performance.
• Fluid Cracking Catalyst: Important in petrochemical processes to improve fuel yields.
• Phosphers: Employed in lighting and display technologies for color enhancement.
• Glass: Used for polishing powders and additives to improve glass properties and finish.
• Polishing Powders: Industrial use for surface finishing in electronics and precision equipment.
• Others: Cover various specialized applications capturing niche market demand.

Regional Insights

China dominates the rare earth elements market with a 58.3% share in 2024, attributed to its vast reserves, well-developed mining infrastructure, and advanced refining capabilities. The country’s integrated supply chain and supportive government policies such as export controls reinforce its leadership. This dominance is supported by lower production costs and strong domestic demand from electronics, EV, and renewable energy sectors, enabling China to influence global pricing and supply dynamics. China also benefits from the rapid expansion of its electronics manufacturing sector, with 7,597 electronic component manufacturing businesses growing at a CAGR of 1.2% from 2020 to 2025.

Recent Developments & News

In May 2025, the U.S. allocated over USD 439 Million via the Defense Department to establish a complete domestic rare earth supply chain under the Defense Production Act, aiming to reduce import dependence and enhance national production.

Canada’s Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Mesa, Arizona, in April 2025, supporting supply balance amid export restrictions by processing scrap from EV motors and hard drives.

In December 2024, Defense Metals revealed its Wicheeda Rare Earth Element Project Pre-feasibility Study with price projections from Argus Media. The study is to be filed under NI 43-101 standards.

August 2024 saw the University of Wyoming’s Blockchain Center partnering with ClimateChain for ‘Project NorthStar’ to improve traceability and emissions tracking in the REE supply chain.

April 2024 included a five-year agreement between Saskatchewan Research Council and Vietnam’s Hung Thinh Group to facilitate annual imports of 3,000 tons of rare earth carbonate, stabilizing global trade.

MP Materials secured USD 58.5 Million in April 2024 to advance the U.S.’s first integrated rare earth magnet manufacturing facility, aimed for commercial production by late 2025.

Australian Strategic Materials partnered with Bechtel in March 2024 for the Dubbo Project, securing funding support, alongside prior agreements with USA Rare Earth to supply NdFeB alloy.

Kazakhstan announced plans in January 2024 to develop 15 rare earth deposits with international partners, focusing on 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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