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Rare Earth Metals Market - By Metal, By Applications & Forecast, 2024 - 2032

  • Report ID: GMI2303
  • Published Date: Oct 2024
  • Report Format: PDF

Rare Earth Metals Market Size

The global rare earth metals market was valued at USD 15.3 billion in 2023 and is estimated to grow at a CAGR of over 10.8% CAGR from 2024 to 2032. Due to the growing product demand from emerging technologies such as hybrid vehicles and electric vehicles coupled with the propelling use in magnet and optical instrument application.
 

rare earth metals market

Rare earth metals are a class of elements found together in the earth crust that possesses similar physical and chemical properties. These elements extracted can be extracted and processed in their ore forms and consist of both hard and light categories. Praseodymium and samarium fall in the light-weight category and readily found as compared to the heavy metals such as terbium, holmium, gadolinium, europium, thulium, dysprosium, erbium, lutetium, and ytterbium.
 

Neodymium is majorly used producing permanent magnets used in electrical and hybrid vehicles. The growing implications to reduce the co2 emissions coupled with the presence of stringent regulations has propelled the adoption of electrical vehicles in turn contributing to the overall market share.
 

The increasing demand for electric vehicles (EVs) significantly drives the rare earth metal market, as these vehicles rely heavily on rare earth elements for batteries, magnets, and electric motors. As EV adoption rises globally, so does the need for these critical materials.
 

The expansion of renewable energy technologies, such as wind turbines and solar panels, also fuels demand for rare earth metals. Components like permanent magnets used in wind turbines require substantial quantities of rare earth elements, creating a robust market for these materials.
 

Advancements in consumer electronics further contribute to the growth of the rare earth metal market. As devices become more sophisticated, incorporating features like high-performance displays and compact components, the need for rare earth metals increases. This trend is evident in smartphones, tablets, and other gadgets that utilize these materials for enhanced functionality and efficiency, solidifying their importance in modern technology and energy solutions.
 

Rare Earth Metals Market Trends

The rare earth metals industry is witnessing significant trends in extraction and mining practices. Innovative extraction techniques, such as hydrometallurgical processes, are being adopted to enhance yield and reduce environmental impact. Companies are increasingly investing in technologies that enable more efficient separation of rare earth elements from ores, which is crucial for meeting growing demand.
 

Mining operations are expanding geographically, with a focus on untapped reserves in regions like Africa and North America, aiming to diversify supply sources and mitigate geopolitical risks. As regulatory pressures increase, there's a growing emphasis on sustainable mining practices, including reduced water usage and waste management.
 

Storage solutions for rare earth metals are also evolving, as firms look to establish strategic reserves to safeguard against supply chain disruptions. These trends reflect a concerted effort to balance economic viability with environmental responsibility, ensuring a stable supply of these critical materials for future technological advancements.
 

Rare Earth Metals Market Analysis

Rare Earth Metals Market Size, By Metal, 2021 - 2032 (USD Billion)

The neodymium metal segment will capture USD 10.8 billion and demonstrate a 9.2% CAGR till 2032. Neodymium and dysprosium are leading the demand surge, primarily driven by their essential roles in manufacturing powerful magnets for electric vehicles and renewable energy technologies. Cerium is gaining traction in catalytic converters and glass polishing, reflecting the increasing focus on environmental sustainability.
 

Lanthanum and praseodymium are critical for battery technologies, particularly in hybrid and electric vehicles, contributing to their growing popularity. Meanwhile, europium and terbium remain vital for phosphorescent materials in LED lighting and display technologies, as the shift towards energy-efficient solutions continues.
 

The demand for rare earth elements like gadolinium and holmium is also rising, particularly in medical imaging and electronics. As industries seek to secure stable supply chains, investments in mining and processing capabilities are increasing, highlighting the strategic importance of these metals in the global economy.
 

Rare Earth Metals Market Revenue Share, By Application, (2023)

The rare earth metals market from magnet segment held a 26.7% market share in 2023, amounting to USD 4.2 billion and is projected to grow at a 9% CAGR from 2024 to 2032. The demand for magnets, particularly in electric vehicles and renewable energy systems, is surging as manufacturers prioritize high-performance, lightweight solutions. This trend is primarily driven by the growing emphasis on energy efficiency and sustainability.
 

In the colorants sector, europium and terbium are increasingly sought after for their roles in phosphorescent materials, especially in LED lighting and display technologies, aligning with the global shift towards energy-efficient lighting solutions.
 

Rare earth metals are also essential in producing alloys for aerospace and automotive industries, where durability and performance are critical. The catalysts application is expanding, particularly in automotive and industrial sectors, as stricter emissions regulations drive the need for efficient catalytic converters. Overall, the diverse applications of rare earth metals highlight their importance in modern technology and industry, reinforcing the need for secure and sustainable supply chains.
 

U.S. Rare Earth Metals Market Size, 2021 - 2032 (USD Billion)

U.S. rare earth metals market is projected to achieve USD 3.4 billion, with a CAGR of 11% from 2024 to 2032. The U.S. rare earth metals industry is undergoing significant transformation driven by increased domestic demand and strategic initiatives to reduce reliance on foreign supplies. As electric vehicle production ramps up, the need for rare earth elements, particularly neodymium and dysprosium for magnets, is rising sharply. This demand is further fueled by advancements in renewable energy technologies, where rare earths are essential for wind turbines and energy storage systems.
 

In response to geopolitical concerns and supply chain vulnerabilities, the U.S. government is prioritizing investment in domestic mining and processing capabilities. Initiatives aimed at developing sustainable extraction methods and recycling technologies are gaining traction, reflecting a commitment to environmental responsibility.
 

Additionally, collaborations between public and private sectors are fostering innovation in the sector. Overall, the U.S. rare earth metals industry is positioning itself for growth, emphasizing resilience, sustainability, and the strategic importance of these critical materials in the global market.
 

Rare Earth Metals Market Share

Rare Earth Metals Market Share Analysis, (2023)

Companies include, Linde Ucore Rare Metals Inc. is focused on developing its Bokan-Dotson Ridge project in Alaska, which aims to produce high-purity rare earth elements, addressing the growing demand for domestic sources in North America. Arafura Resources Limited is advancing its Nolans project in Australia, which will supply key rare earths like neodymium and praseodymium, vital for clean energy technologies.
 

Iluka Resources Limited is leveraging its expertise in mineral sands to explore rare earth extraction from its Australian operations, emphasizing sustainable practices and environmental responsibility. Lynas Corporation is one of the largest producers of rare earths outside China, operating a processing facility in Malaysia and expanding its production capabilities to meet global demand. Baotou Jinmeng Rare Earth Co. plays a crucial role in the Chinese market, focusing on the production and processing of various rare earth metals, thus contributing significantly to the global supply chain.
 

Rare Earth Metals Market Companies

Major players operating in the rare earth metals industry are:

  • Arafura Resources Ltd
  • Alkane Resources Ltd
  • Baotou Jinmeng Rare Earth Co
  • Canada Rare Earth Corporation
  • China Minmetals Rare Earth Co., Ltd
  • Greenland Minerals and Energy Ltd
  • Iluka Resources Limited
  • Indian Rare Earths Limited
  • Lynas Corporation Ltd.
  • Northern Minerals Limited
  • Rising Nonferrous Metals Co., Ltd
     

Rare Earth Metals Industry News

March 2024: Canada Rare Earth Corp. has secured a majority stake in a private firm, Privco, which operates a mining quarry rich in valuable rare earths and essential minerals. The acquisition, valued at USD 400,000, represents a key step in the company's strategy to establish exclusive sources for these minerals.
 

July 2024: Trident global holdings and zoetic global announce major deal to transform U.S. industries with rare earth elements. This partnership underscores the growing importance of rare earth elements in the global economy and highlights the commitment of both companies to innovation and responsible resource management.
 

This rare earth metals market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Metal

  • Cerium
  • Dysprosium
  • Erbium
  • Europium
  • Gadolinium
  • Holmium
  • Lanthanum
  • Lutetium
  • Neodymium
  • Praseodymium
  • Promethium
  • Samarium
  • Scandium
  • Terbium
  • Thulium
  • Ytterbium
  • Yttrium

Market, By Application

  • Magnets
  • Colorants
  • Alloys
  • Optical instruments
  • Catalysts
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE

 

Authors: Kiran Pulidindi, Manish Dhiman

Frequently Asked Questions (FAQ) :

The global market size for rare earth metals was valued at USD 15.3 billion in 2023 and is expected to reach USD 30.1 billion by 2032, driven by a CAGR of over 10.8% from 2024 to 2032.

The magnet segment held a 26.7% market share in 2023, amounting to USD 4.2 billion, and is projected to grow at a 9% CAGR from 2024 to 2032, driven by the increasing demand for high-performance, lightweight solutions in electric vehicles and renewable energy systems.

U.S. market is projected to achieve USD 3.4 billion by 2032, driven by a CAGR of 11% from 2024 to 2032, fueled by increased domestic demand and strategic initiatives to reduce reliance on foreign supplies.

Major players in the industry include Arafura Resources Ltd, Alkane Resources Ltd, Baotou Jinmeng Rare Earth Co, Greenland Minerals and Energy Ltd, Iluka Resources Limited, Indian Rare Earths Limited, and Lynas Corporation Ltd.

Rare Earth Metals Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 13
  • Tables & Figures: 172
  • Countries covered: 16
  • Pages: 200
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